Federal Register / Vol. 87, No. 41 / Wednesday, March 2, 2022 / Notices 11739 

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

2 17 CFR 240.19b–4. 

Management and Budget approval of the 

information collection request; they will 

also become a matter of public record. 

Anjanette Suggs, 

Agency Clearance Officer, Office of Workers’ 

Compensation Programs, U.S. Department of 

Labor. 

[FR Doc. 2022–04365 Filed 3–1–22; 8:45 am] 

BILLING CODE 4510–CK–P 

NATIONAL SCIENCE FOUNDATION 

Agency Information Collection 

Activities: Comment Request; Grantee 

Reporting Requirements for 

Partnership for Research and 

Education in Materials (PREM) 

AGENCY: National Science Foundation. 

ACTION: Notice. 

SUMMARY: The National Science 

Foundation (NSF) is announcing plans 

to renew this collection. In accordance 

with the requirements of the Paperwork 

Reduction Act of 1995, we are providing 

opportunity for public comment on this 

action. After obtaining and considering 

public comment, NSF will prepare the 

submission requesting Office of 

Management and Budget (OMB) 

clearance of this collection for no longer 

than 3 years. 

DATES: Written comments on this notice 

must be received by May 2, 2022 to be 

assured consideration. Comments 

received after that date will be 

considered to the extent practicable. 

Send comments to address below. 

FOR FURTHER INFORMATION CONTACT: 

Suzanne H. Plimpton, Reports Clearance 

Officer, National Science Foundation, 

2415 Eisenhower Avenue, Suite 

W18200, Alexandria, Virginia 22314; 

telephone (703) 292–7556; or send email 

to splimpto@nsf.gov. Individuals who 

use a telecommunications device for the 

deaf (TDD) may call the Federal 

Information Relay Service (FIRS) at 1– 

800–877–8339, which is accessible 24 

hours a day, 7 days a week, 365 days a 

year (including Federal holidays). 

SUPPLEMENTARY INFORMATION: 

Title of Collection: Grantee Reporting 

Requirements for Partnerships for 

Research and Education in Materials 

(PREM). 

OMB Number: 3145–0232. 

Expiration Date of Approval: 

September 30, 2022. 

Type of Request: Intent to seek 

approval to renew an information 

collection. 

Overview of this Information 

Collection: The Partnerships for 

Research and Education in Materials 

(PREM) aims to enhance diversity in 

materials research and education by 

stimulating the development of formal, 

long-term, collaborative research and 

education relationships between 

minority-serving colleges and 

universities and centers, institutes and 

facilities supported by the NSF Division 

of Materials Research (DMR). With this 

collaborative model PREMs build 

intellectual and physical infrastructure 

within and between disciplines, 

weaving together knowledge creation, 

knowledge integration, and knowledge 

transfer. PREMs conduct world-class 

research through partnerships of 

academic institutions, national 

laboratories, industrial organizations, 

and/or other public/private entities. 

New knowledge thus created is 

meaningfully linked to society, with an 

emphasis on enhancing diversity. 

PREMs enable and foster excellent 

education, integrate research and 

education, and create bonds between 

learning and inquiry so that discovery 

and creativity more fully support the 

learning process. PREMs capitalize on 

diversity through participation and 

collaboration in center activities and 

demonstrate leadership in the 

involvement of groups 

underrepresented in science and 

engineering. 

PREMs will be required to submit 

annual reports on progress and plans, 

which will be used as a basis for 

performance review and determining 

the level of continued funding. To 

support this review and the 

management of the award PREMs will 

be required to develop a set of 

management and performance 

indicators for submission annually to 

NSF via the Research Performance 

Project Reporting module in 

Research.gov. These indicators are both 

quantitative and descriptive and may 

include, for example, the characteristics 

of personnel and students; sources of 

financial support and in-kind support; 

expenditures by operational component; 

research activities; education activities; 

patents, licenses; publications; degrees 

granted to students involved in PREM 

activities; descriptions of significant 

advances and other outcomes of the 

PREM effort. 

Each PREM’s annual report will 

include the following categories of 

activities: (1) Research, (2) education (3) 

outreach, (4) partnerships, (5) diversity, 

(6) management, and (7) budget issues. 

For each of the categories the report 

will describe overall objectives for the 

year, problems the PREM has 

encountered in making progress towards 

goals, anticipated problems in the 

following year, and specific outputs and 

outcomes. 

PREMs are required to file a final 

report through the RPPR and external 

technical assistance contractor. Final 

reports contain similar information and 

metrics as annual reports but are 

retrospective. 

Use of the Information: NSF will use 

the information to continue funding of 

PREMs, and to evaluate the progress of 

the program. 

Estimate of Burden: 50 hours per 

PREM for 32 PREMs for a total of 1,600 

hours. 

Respondents: Non-profit institutions. 

Estimated Number of Responses per 

Report: One from each of the fifteen 

PREMs. 

Comments: Comments are invited on 

(a) whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the Agency’s 

estimate of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and (d) ways to 

minimize the burden of the collection of 

information on those who are to 

respond, including through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology. 

Dated: February 25, 2022. 

Suzanne H. Plimpton, 

Reports Clearance Officer,National Science 

Foundation. 

[FR Doc. 2022–04402 Filed 3–1–22; 8:45 am] 

BILLING CODE 7555–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94301; File No. SR– 

PEARL–2022–06] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 2617(b) 

To Adopt Two New Routing Options, 

and To Make Related Changes and 

Clarifications to Rules 2614(a)(2)(B) 

and 2617(b)(2) 

February 23, 2022. 

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

Securities Exchange Act of 1934 

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


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11740 Federal Register / Vol. 87, No. 41 / Wednesday, March 2, 2022 / Notices 

3 The PAC routing option is based on Cboe BZX 

Exchange, Inc. (‘‘BZX’’) Rule 11.13(b)(3)(N) 

(describing the ROOC routing option), Cboe EDGX 

Exchange, Inc. (‘‘EDGX’’) Rule 11.11(g)(8) 

(describing the ROOC routing option), and The 

Nasdaq Stock Market LLC (‘‘Nasdaq’’) Rule 

4758(a)(1)(A)(x) (describing the LIST routing 

option). The PI routing option is based on BZX Rule 

11.13(b)(3)(G) (describing the Route To Improve 

(‘‘RTI’’) routing option) and EDGX Rule 11.11(g)(12) 

(describing the RTI routing option). 

4 The term ‘‘Equity Member’’ is a Member 

authorized by the Exchange to transact business on 

MIAX Pearl Equities. See Exchange Rule 1901. 

5 See Exchange Rule 2614(a)(2). 

6 See Exchange Rule 2614(a)(1). 

7 Exchange Rule 2614(b)(2) defines ‘‘Regular 

Hours Only’’ or ‘‘RHO’’ as ‘‘[a]n order that is 

designated for execution only during Regular 

Trading Hours, which includes the Opening Process 

for equity securities. An order with a time-in-force 

of RHO entered into the System before the opening 

of business on the Exchange as determined 

pursuant to Exchange Rule 2600 will be accepted 

but not eligible for execution until the start of 

Regular Trading Hours.’’ 

8 As described further below, the Exchange does 

not propose to route Market Orders to the primary 

listing market’s closing process. 

9 The Exchange notes that proposed Exchange 

Rule 2617(b)(5)(B) differs from BZX Rule 

11.13(b)(3)(N) and EDGX Rule 11.11(g)(8) in three 

primary ways. First, proposed Exchange Rule 

2617(b)(5)(B) would specify that the PAC routing 

option is limited to Market Orders and displayed 

Limit Orders while both BZX and EDGX rules do 

not include that level of specificity. However, the 

Exchange believes this is consistent with BZX and 

EDGX functionality. Second, proposed Exchange 

Rule 2617(b)(5)(B) would specify that an order 

coupled with the PAC routing option would only 

route to the re-opening following a regulatory halt, 

while BZX and EDGX refer to halts generally. Third, 

both BZX and EDGX require that an order be 

received before the primary listing market’s 

opening, re-opening, or closing time, but do not 

specify whether that order must be received prior 

to the primary listing market’s order entry cut-off 

time or how and when orders are routed to the 

primary listing market to participate in their 

opening, re-opening, or closing process. Proposed 

Exchange Rule 2617(b)(5)(B) would provide 

additional specificity as to when an order coupled 

with the PAC routing option would be routed to 

participate in the primary listing market’s opening, 

re-opening, or closing process. The Exchange will 

continue to route such orders to participate in the 

primary listing market’s opening, re-opening, or 

closing process after their order entry cut-off time 

to increase the order’s chances of participating in 

the opening, re-opening, or closing process while 

also accounting for the order entry cut-off time 

being changed/extended or where the primary 

listing market continues to accept orders after their 

established order entry cut-off time in accordance 

with their rules. See infra note 22. If the primary 

listing market rejects or cancels the order coupled 

with the PAC routing option for any reason, the 

Exchange will pass any rejection or cancellation 

along to the Equity Member that entered the order. 

10 The Exchange believes this is consistent with 

operation of the ROOC routing option on BZX and 

EDGX and the LIST routing option on Nasdaq 

because none of those exchanges’ rules state that 

any returned unexecuted shares of an order routed 

to participate in a primary listing market’s opening, 

closing, or re-opening process may be cancelled 

upon receipt. The Exchange believes this implies 

that BZX, EDGX, and Nasdaq only route ROOC or 

LIST orders, respectively, with a time-in-force of 

RHO or its equivalent, and not as IOC. See BZX 

Rule 11.13(b)(3)(N) and EDGX Rule 11.11(g)(8) 

(stating ‘‘[i]f shares remain unexecuted after 

attempting to execute in the opening, re-opening, or 

closing process, they are either posted to the BZX 

Book, executed, or routed to destinations on the 

System routing table’’). See also Nasdaq Rule 

4758(a)(1)(A)(x) (describing Nasdaq’s LIST routing 

option and specifying that any returned shares are 

posted to the book, thereby implying that Nasdaq 

does not route LIST orders as IOC). 

11 See Exchange Rule 2614(b)(1). 

12 An order that is cancelled is first accepted by 

the System and then immediately cancelled back to 

notice is hereby given that on February 

15, 2022, MIAX PEARL, LLC (‘‘MIAX 

Pearl’’ or ‘‘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 

The Exchange is filing a proposed rule 

change to amend Exchange Rule 

2617(b), Routing to Away Trading 

Centers, to: (i) Adopt two new routing 

options called Route to Primary Auction 

(‘‘PAC’’) and Price Improvement (‘‘PI’’); 

and (ii) make related changes and 

clarifications to Exchange Rules 

2614(a)(2)(B) and 2617(b)(2). 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl, at MIAX PEARL’s 

principal office, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend Exchange Rule 

2617(b), Routing to Away Trading 

Centers, to adopt two new routing 

options called PAC and PI that would be 

available to orders in equity securities 

traded on the Exchange’s equity trading 

platform (referred to herein as ‘‘MIAX 

Pearl Equities’’). Both of the proposed 

routing options are based on similar 

functionality offered at other equity 

exchanges.3 The Exchange also proposes 

to make related changes and 

clarifications to Exchange Rules 

2614(a)(2)(B) and 2617(b)(2). 

The Exchange offers its Equity 

Members 4 optional routing 

functionality that allows them to use the 

Exchange to access liquidity on other 

trading centers. The functionality 

includes routing algorithms that 

determine the destination or pattern of 

routing. Exchange Rule 2617(b)(5) sets 

forth that there is a particular pattern of 

routing to other trading centers, known 

as the ‘‘System routing table’’, as well as 

setting forth the Exchange’s available 

routing option. All routing is designed 

to be conducted in a manner consistent 

with Regulation NMS. 

PAC Routing Option 

In sum, the PAC routing option would 

enable an Equity Member to designate 

that their order be routed to the primary 

listing market to participate in the 

primary listing market’s opening, reopening or closing process. Proposed 

Exchange Rule 2617(b)(5)(B) would 

describe PAC as a routing option for 

Market Orders 5 and displayed Limit 

Orders 6 designated with a time-in-force 

of Regular Hours Only (‘‘RHO’’) 7 that 

the entering firm wishes to designate for 

participation in the opening, re-opening 

(following a regulatory halt, suspension, 

or pause), or closing process 8 of a 

primary listing market (BZX, the New 

York Stock Exchange LLC (‘‘NYSE’’), 

Nasdaq, NYSE American LLC (‘‘NYSE 

American’’), or NYSE Arca, Inc. (‘‘NYSE 

Arca’’)) if received before the opening, 

re-opening, or closing process of such 

market.9

The following summarizes the 

operation of the PAC routing option 

based on the order type and time-inforce selected. A more detailed 

description of the operation of the 

proposed PAC routing option is 

provided below. 

• Only Market Orders and displayed 

Limit Orders designated as RHO would 

be eligible for routing pursuant to the 

PAC routing option.10

• Market Orders and displayed Limit 

Orders designated as Immediate-orCancel (‘‘IOC’’) 11 would not be eligible 

for routing pursuant to the PAC routing 

option. 

• Market Orders coupled with the 

PAC routing option designated as IOC 

would be cancelled.12


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the Member. An order that is rejected is not 

accepted by the System and immediately returned 

to the Member. 

13 See supra note 9. Related changes with regard 

to Limit Orders are not needed because Exchange 

Rule 2614(a)(1)(B) already provides that ‘‘[a] Limit 

Order may include a time-in-force of IOC or RHO.’’ 

14 See Exchange Rule 2600(a). 

15 As described herein, the Exchange proposes to 

amend Exchange Rule 2614(a)(2)(B) to provide that 

a Market Order may also include a time-in-force of 

RHO only when coupled with the PAC routing 

option. See supra note 13 and accompanying 

paragraph. 

16 See proposed Exchange Rule 26174(b)(5)(B). 

17 See, e.g., Nasdaq Rules 4702(b)(9)(A) 

(providing that ‘‘[a]n LOO Order entered after 

9:29:30 a.m. ET that is designated as an IOC will 

be rejected’’), and 4702(b)(11)(B) (stating that ‘‘a 

Participant may designate the Time-in-Force for an 

MOC Order either by designating a Time-in-Force 

of ‘‘On Close’’ or by entering a Time-in-Force of IOC 

and flagging the Order to participate in the Nasdaq 

Closing Cross’’). 

18 Like current functionality, an order coupled 

with the PAC routing option that is also designated 

as IOC would be rejected if entered before 9:30 a.m. 

Eastern Time because the Exchange does not accept 

orders with a time-in-force of IOC prior to 9:30 a.m. 

Eastern Time. See Exchange Rule 2600(a). 

• Market Orders coupled with the 

PAC routing option designated as RHO 

would be eligible to be routed to 

participate in the primary listing 

market’s opening and re-opening 

process. 

• Market Orders coupled with the 

PAC routing option designated as RHO 

would not be eligible to be routed to 

participate in the primary listing 

market’s closing process and would be 

cancelled. 

• Limit Orders coupled with the PAC 

routing option designated as RHO 

would eligible to be routed to 

participate in the primary listing 

market’s opening, re-opening, and 

closing process. 

• Limit Orders coupled with the PAC 

routing option designated as IOC 

received before the security has opened 

on the primary listing market would be 

cancelled. 

• Limit Orders coupled with the PAC 

routing option designated as IOC 

received during the time when the 

Exchange is routing orders to participate 

in the primary listing market’s reopening process would be rejected. 

• Limit Orders coupled with the PAC 

routing option designated as IOC 

received during continuous trading or 

during the time when the Exchange is 

in the process of routing orders to 

participate in the primary listing 

market’s closing process would be 

routed pursuant to the PI routing option, 

described below. 

Time-in-Force Related Rule Changes 

The Exchange proposes certain 

changes to its time-in-force rules related 

to its proposal to only route Market 

Orders and displayed Limit Orders 

pursuant to the PAC routing option 

when such orders are designated as 

RHO. The Exchange currently offers two 

time-in-force instructions, IOC and 

RHO. 

Exchange Rule 2614(a)(2)(B) provides 

that ‘‘[a] Market Order may only include 

a time-in-force of IOC.’’ The Exchange 

proposes to amend Exchange Rule 

2614(a)(2)(B) to provide that a Market 

Order may also include a time-in-force 

of RHO only when coupled with the 

PAC routing option. Exchange Rule 

2614(a)(2)(B) would further be amended 

to specify that all other Market Orders 

that include a time-in-force of RHO will 

be rejected. The Exchange proposes to 

require that only incoming Market 

Orders and Limit Orders designated as 

RHO will be eligible to be routed 

pursuant to the PAC routing option.13

As described in detail below, a Market 

Order coupled with the proposed PAC 

routing option designated as RHO 

would be rejected if not received: (i) 

Before the security has opened on the 

primary listing market to be routed to 

participate in the primary listing 

market’s opening process; and (ii) after 

the announcement of a regulatory halt, 

suspension, or pause to be routed to 

participate in the primary listing 

market’s re-opening process. Otherwise, 

a Market Order coupled with the PAC 

routing option and designated as IOC 

would also be rejected. Amending 

Exchange Rule 2614(a)(2)(B) to provide 

that a Market Order coupled with the 

PAC routing option include a time-inforce of RHO is necessary to ensure such 

orders are accepted by the System prior 

to the opening. For example, the 

Exchange does not accept orders with a 

time-in-force of IOC prior to 9:30 a.m. 

Eastern Time.14 Therefore, a Market 

Order that is entered prior to 9:30 a.m. 

Eastern Time would need to include a 

time-in-force of RHO to be accepted and 

eligible to be routed to the primary 

listing market’s opening process. 

The Exchange currently designates all 

routable orders as IOC when routing 

such order to an away market, 

regardless of the time-in-force included 

with the order upon entry. Exchange 

Rule 2617(b)(4) describes this 

functionality and currently provides 

that the System will designate Market 

Orders and marketable Limit Orders that 

are fully or partially routed to an away 

Trading Center as IOC.15

To ensure that orders coupled with 

the PAC routing option are eligible to 

participate in the primary listing 

market’s opening, re-opening, or closing 

process, the Exchange proposes to route 

Market Orders and displayed Limit 

Orders designated as RHO upon entry 

with a time-in-force accepted or 

required by the primary listing 

market.16 As such, the Exchange would 

convert an order’s time-in-force to a 

time-in-force accepted or required by 

the primary listing market when 

necessary only for purposes of routing 

that order to an away market. For 

example, an order in a Nasdaq listed 

security coupled with the PAC routing 

option that includes a time-in-force of 

RHO would be routed as IOC or ‘‘On 

Close’’ to participate in Nasdaq’s closing 

process.17 The Exchange would not alter 

the time-in-force of an order coupled 

with the PAC routing option designated 

as RHO where the primary listing 

market accepts orders designated as 

RHO to participate in its opening, reopening, or closing process. 

Routing to Primary Listing Market’s 

Opening, Re-Opening, or Closing 

Process 

Proposed Exchange Rule 

2617(b)(5)(B)(1) would describe how an 

order coupled with the PAC routing 

option operates when being routed to 

participate in the primary listing 

market’s opening, re-opening, or closing 

process. 

Proposed Exchange Rule 

2617(b)(5)(B)(1)(i) would describe when 

an order designated as RHO and 

coupled with the PAC routing option 

may be routed to participate in the 

primary listing market’s opening and reopening processes. Specifically, 

proposed Exchange Rule 

2617(b)(5)(B)(1)(i) would provide that a 

displayed Limit Order or Market Order 

designated as RHO received before the 

security has opened on the primary 

listing market will be routed to 

participate in the primary listing 

market’s opening process upon 

receipt.18 Proposed Exchange Rule 

2617(b)(5)(B)(1)(i) would further 

provide that a displayed Limit Order 

designated as RHO will be routed to 

participate in a primary listing market 

re-opening process upon the 

announcement of a regulatory halt, 

suspension, or pause. A displayed Limit 

Order or Market Order designated as 

RHO received after the announcement 

of a regulatory halt, suspension, or 

pause, but before the time of a primary 

listing market re-opening process would 

be routed to participate in a primary 

listing market re-opening process upon 

receipt. Lastly, proposed Exchange Rule 

2617(b)(5)(B)(1)(i) would provide that a 

Market Order designated as RHO not 


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19 This is consistent with the ROOC routing 

option available on BZX and EDGX which provides 

that ‘‘[i]f shares remain unexecuted after attempting 

to execute in the opening, re-opening, or closing 

process, they are either posted to the BZX Book, 

executed, or routed to destinations on the System 

routing table.’’ See BZX Rule 11.13(b)(3)(N) and 

EDGX Rule 11.11(g)(8). 

20 The Exchange will publicly announce the 

initial time at which it would route Limit Orders 

to participate in the primary listing market’s closing 

process and any updates via a regulatory circular 

or alert. Unexecuted shares of a Limit Order that are 

routed to participate in the primary listing market’s 

closing process will be cancelled. 

21 The Exchange notes that the portion of a Limit 

Order designated as RHO not executed in the 

primary listing market’s closing process will be 

cancelled because the Exchange does not currently 

provide an afterhours trading session or time-inforce instruction that extends past Regular Trading 

Hours. 

22 See, e.g., NYSE Rule 7.35B(f)(1)(B) (providing 

for the entry of orders after the order entry cut-of 

time in the event a Regulatory Closing Imbalance 

is published). See, e.g., BZX Rules 11.23(b)(1)(A) 

(providing for the entry of Late Limit On Open 

Orders until 9:30 a.m.), (c)(1)(A) (providing for the 

entry of Late Limit On Close orders up until 4:00 

p.m.); and (d)(1)(C) (Incremental Quote Period 

Extensions For Halt Auctions Following a 

Regulatory Halt). The Exchange notes that this 

differs from BZX Rule 11.13(b)(3)(N) and EDGX 

Rule 11.11(g)(8). See supra note 9. This behavior is 

also similar to Nasdaq’s LIST routing option that 

will continue to route orders to participate in the 

primary listing market’s closing process after its 

order entry cut-off time. See Nasdaq Rule 

4758(a)(1)(A)(x) (stating that ‘‘[i]f a LIST order is 

received at or after a time that is two minutes before 

market close but before market close, Nasdaq will 

check the System for available shares and 

simultaneously route the remaining shares to 

destinations on the System routing table; remaining 

shares will be routed to the security’s primary 

listing market to participate in its closing 

process.’’). 

23 The Exchange would submit a proposed rule 

change to route Market Orders to participate in the 

primary listing market’s closing process should 

Equity Members request such a change. 

received during times set forth above 

will be cancelled. 

Proposed Exchange Rule 

2617(b)(5)(B)(1)(i)(a) would describe 

how the Exchange would handle the 

returned unexecuted quantity of a Limit 

Order designated as RHO routed 

pursuant to the PAC routing option to 

participate in the primary listing 

market’s opening or re-opening process. 

Specifically, proposed Exchange Rule 

2617(b)(5)(B)(1)(i)(a) would provide that 

any shares that remain unexecuted after 

attempting to execute in the primary 

listing market’s opening or re-opening 

process will either be posted to the 

MIAX Pearl Equities Book, executed, or 

routed pursuant to the PI routing option 

described below.19 Because Limit 

Orders must be designated as RHO upon 

entry to be routed pursuant to the PAC 

routing option, an Equity Member that 

wants any returned unexecuted quantity 

of such order to be immediately 

returned to them would need to submit 

an instruction to cancel any unexecuted 

shares upon their return to the 

Exchange. 

Proposed Exchange Rule 

2617(b)(5)(B)(1)(i)(b) would describe 

how the Exchange would handle the 

returned unexecuted quantity of any 

Market Order designated as RHO routed 

pursuant to the PAC routing option to 

participate in the primary listing 

market’s opening or re-opening process. 

Today, the Exchange cancels the 

returned unexecuted quantity of routed 

Market Orders pursuant to Exchange 

Rule 2614(a)(2). The same would be true 

for a Market Order designated as RHO 

that is routed away pursuant to the PAC 

routing option. Proposed Exchange Rule 

2617(b)(5)(B)(1)(i)(b) provides that any 

shares of a Market Order that remain 

unexecuted after attempting to execute 

in the primary listing market’s opening 

or re-opening process will be cancelled. 

Proposed Exchange Rule 

2617(b)(5)(B)(1)(ii) would describe 

when an order coupled with the PAC 

routing option would be routed to 

participate in the primary listing 

market’s closing process. The Exchange 

only proposes to route Limit Orders 

coupled with the PAC routing option 

and designated as RHO to participate in 

the primary listing market’s closing 

process. Market Orders would not be 

eligible to be routed pursuant to the 

PAC routing option to participate in the 

primary listing market’s closing process, 

as discussed more below. Proposed 

Exchange Rule 2617(b)(5)(B)(1)(ii)(a) 

would provide that Limit Orders 

designated as RHO will be routed 

pursuant to the PAC routing option to 

participate in the primary listing 

market’s closing process prior to the 

primary listing market’s order entry cutoff time.20

Proposed Exchange Rule 

2617(b)(5)(B)(1)(ii)(a) does not provide a 

deadline for order entry because the 

Exchange will continue to route Limit 

Orders designated as RHO to participate 

in the primary listing market’s opening, 

re-opening, or closing process after their 

order entry cut-off time. In addition, 

proposed Exchange Rule 

2617(b)(5)(B)(1)(ii)(a) would provide 

that if a Limit Order designated as RHO 

is received at or after the time the 

Exchange begins to route orders to 

participate in the primary listing 

market’s closing process, but before 

market close, the Exchange will check 

the System for available shares and then 

route the remaining shares to participate 

in the primary listing market’s closing 

process.21 This is intended to provide 

Equity Members with increased 

opportunities to participate in the 

primary listing market’s closing process 

while also accounting for whether the 

order entry cut-off time is changed/ 

extended or should the primary listing 

market continue to accept orders after 

their established order entry cut-off time 

in accordance with their rules.22 If the 

primary listing market rejects or cancels 

the Limit Order routed pursuant to the 

PAC routing option for any reason, the 

Exchange will pass any rejection or 

cancellation along to the Equity Member 

that entered the order. Equity Members 

that seek greater certainty that their 

Limit Orders coupled with the PAC 

routing option would participate in the 

closing process at the primary listing 

market may enter their orders prior to 

the primary listing market’s order entry 

cut-off time. 

Market Orders coupled with the PAC 

routing option would not be eligible for 

routing to the primary listing market’s 

closing process. Proposed Exchange 

Rule 2617(b)(5)(B)(1)(ii)(b) would, 

therefore, provide that a Market Order 

designated as RHO would not be eligible 

to be routed to participate in the 

primary listing market’s closing process. 

Proposed Exchange Rule 

2617(b)(5)(B)(1)(ii)(b) would further 

provide that a Market Order designated 

as RHO received at or after the time the 

Exchange begins to route existing orders 

to participate in the primary listing 

market’s closing process, but before 

market close, will be cancelled. 

The Exchange understands that 

Equity Members do not plan to utilize 

Market Orders to participate in the 

primary listing market’s closing process 

because they would prefer to enter Limit 

Orders for purposes of participating in 

the price discovery process conducted 

by the primary listing market’s closing 

process.23 Therefore, the Exchange does 

not propose to accept Market Orders for 

purposes of routing them to a primary 

listing market’s closing process. The 

Exchange seeks to make clear in its 

proposed rules how a Market Order 

coupled with the PAC routing option 

would be handled should an Equity 

Member mistakenly enter such an order 

when the Exchange is in the process of 

routing orders to participate in the 

primary listing market’s closing process. 

Continuous Trading 

Proposed Exchange Rule 

2617(b)(5)(B)(2) would describe how an 

order coupled with the PAC routing 

option would operate during continuous 

trading when the Exchange is not in the 

process of routing orders pursuant to the 

PAC routing option to participate in the 

primary listing market’s re-opening or 

closing process. 


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24 The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

25 A Limit Order coupled with the PAC routing 

option would only be defaulted to the proposed PI 

routing option and will not be eligible to be coupled 

with any other routing option. 

26 Proposed Exchange Rule 2617(b)(5)(B)(2) is 

based on Nasdaq Rule 4758(a)(1)(A)(x), which 

describes how their LIST routing option operates 

during continuous trading. See Nasdaq Rule 

4758(a)(1)(A)(x) (providing that ‘‘if a LIST order is 

entered after the security has opened on the 

primary listing market (but before a time that is two 

minutes before market close) and the order has not 

been designated to participate in the opening only, 

Nasdaq will check the System for available shares 

and simultaneously route the remaining shares to 

destinations on the System routing table . . .’’). 

27 Proposed Exchange Rule 2617(b)(5)(B)(2)(i) is 

based on BZX Rule 11.13(b)(3)(N) and EDGX Rule 

11.11(g)(8). 

28 Exchange Rule 2614(g)(3)(A) generally defines 

a Short Sale Period as the time during which a short 

sale price test restriction under Rule 201 of 

Regulation SHO is in effect. 

29 Rules 201(b)(1)(i) and (ii) of Regulation SHO 

generally require that trading centers such as the 

Exchange establish, maintain, and enforce written 

policies and procedures reasonably designed to: (i) 

Prevent the execution or display of a short sale 

order of a covered security at a price that is less 

than or equal to the current national best bid if the 

price of that covered security decreases by 10% or 

more from the covered security’s closing price; and 

(ii) impose this price restriction for the remainder 

of the day and the following day. To maintain 

compliance with Rule 201 of Regulation SHO, an 

exchange may only execute short sale orders (i.e., 

those not marked short exempt) if the execution 

would take place at a permissible price pursuant to 

Regulation SHO. Specifically, if a security is in a 

Short Sale Period, an order marked short that is 

routed pursuant to the proposed PAC routing 

option may only trade in the opening, re-opening, 

or closing process if the process price is above the 

national best bid. 

30 The Exchange notes that proposed amended 

Exchange Rule 2617(b)(2) is based on BZX Rule 

11.13(b)(1) and EDGX Rule 11.11(a) with regard to 

their ROOC routing option. 

Specifically, proposed Exchange Rule 

2617(b)(5)(B)(2)(i) would describe the 

handling of Limit Orders coupled with 

the PAC routing option designated as 

RHO during continuous trading and 

provide that if the order is entered after 

the security has opened on the primary 

listing market, before being routed to the 

primary listing market’s re-opening or 

closing process pursuant to proposed 

Exchange Rule 2617(b)(5)(B)(1)(i) 

described above, the Exchange will 

check the System 24 for available shares 

and then route the remaining shares 

pursuant to the PI routing option,25

described below.26 As a result, a Limit 

Order coupled with the PAC routing 

option that is designated as RHO would 

be treated how a re-routable Limit Order 

is treated today during continuous 

trading; i.e., it would be eligible: (i) First 

for execution locally on the MIAX Pearl 

Equities Book; and then (ii) any 

remaining share would be routed away 

to better priced away interest pursuant 

to the proposed PI routing option 

described below. 

Proposed Exchange Rule 

2617(b)(5)(B)(2)(i)(a) would describe 

how any unexecuted portion of a Limit 

Order designated as RHO and coupled 

with the PAC routing option that is 

routed pursuant to the PI routing option 

during continuous trading would be 

handled. Specifically, proposed 

Exchange Rule 2617(b)(5)(B)(2)(i)(a) 

would provide that any shares that 

remain unexecuted after routing will be 

either posted to the MIAX Pearl Equities 

Book, executed, or routed pursuant to 

the PI routing option, described 

below.27

Proposed Exchange Rule 

2617(b)(5)(B)(2)(ii) would describe the 

handling of Limit Orders coupled with 

the PAC routing option designated as 

IOC during continuous trading. As set 

forth above, a Limit Order coupled with 

the PAC routing option that is 

designated as IOC would not be eligible 

to be routed pursuant to the PAC 

routing option. However, such order 

would be eligible to be routed pursuant 

to the proposed PI routing option. This 

functionality would be described under 

proposed Exchange Rule 

2617(b)(5)(B)(2)(ii), which would 

provide that if a Limit Order designated 

as IOC is entered after the security has 

opened on the primary listing market, 

the Exchange will check the System for 

available shares and then route the 

remaining shares pursuant to the PI 

routing option described below. Any 

shares that remain unexecuted after 

routing will be cancelled in accordance 

with the terms of the order. 

Proposed Exchange Rule 

2617(b)(5)(B)(2)(ii)(a) would provide 

that a Limit Order coupled with the 

PAC routing option designated as IOC 

received during the time when the 

Exchange is in the process of routing 

orders to the primary listing market’s reopening process will be rejected. Such 

order would not be routed pursuant to 

the PI routing option because trading in 

the security would be halted pending 

the primary listing market conducting 

its re-opening process. 

Proposed Exchange Rule 

2617(b)(5)(B)(2)(iii) would describe the 

handling of Market Orders designated as 

RHO that are coupled with the PAC 

routing option during continuous 

trading. Specifically, proposed 

Exchange Rule 2617(b)(5)(B)(2)(iii) 

would provide that a Market Order 

designated as RHO that is entered after 

the security has opened on the primary 

listing market would be routed to 

participate in the primary listing 

market’s re-opening process pursuant to 

the PAC routing option in accordance 

with proposed Exchange Rule 

2617(b)(5)(B)(1), which is described 

above. In sum, a Market Order 

designated as RHO received after the 

announcement of a regulatory halt, 

suspension, or pause, but before the 

time of a primary listing market reopening process would be routed to 

participate in a primary listing market 

re-opening process upon receipt. A 

Market Order designated as RHO not 

received during times set forth above 

would be cancelled. 

Lastly, proposed Exchange Rule 

2617(b)(5)(B)(2)(iv) would provide that a 

Market Order coupled with the PAC 

routing option that is designated as IOC 

entered after the security has opened on 

the primary listing market will be 

cancelled. As discussed above, the 

Exchange will only route Market Orders 

pursuant to the PAC routing option 

when designated as RHO. As such, a 

Market Order would not be eligible to be 

routed pursuant to the PAC routing 

option when designated as IOC. Nor 

does the Exchange propose that Market 

Orders be eligible for routing pursuant 

to the proposed PI routing option, 

discussed below. The proposed rule text 

is intended to provide completeness 

within the Exchange’s rules regarding 

how Market Orders coupled with the 

PAC routing option would be handled 

when designated as IOC. 

Routing During Short Sale Period 

The Exchange also proposes to make 

a related change to Exchange Rule 

2617(b)(2) to describe the routing of 

orders coupled with the PAC routing 

option during a Short Sale Period, as 

defined in Exchange Rule 

2614(g)(3)(A).28 Exchange Rule 

2617(b)(2) currently provides that an 

order marked ‘‘short’’ is not eligible for 

routing by the Exchange during a Short 

Sale Period. The Exchange proposes to 

amend Exchange Rule 2617(b)(2) to 

provide for the routing of an order 

marked ‘‘short’’ where that order is 

being routed to participate in the 

primary listing market’s opening, reopening, or closing process pursuant to 

the PAC routing option.29 Specifically, 

as amended, Exchange Rule 2617(b)(2) 

would provide that ‘‘[u]nless an order is 

routed pursuant to the PAC routing 

option set forth under paragraph (b)(5) 

of this Rule, an order marked ‘short’ is 

not eligible for routing by the Exchange 

during a Short Sale Period, as defined 

in Exchange Rule 2614(g)(3)(A).’’ 30 The 

Exchange notes that an order coupled 

with the PAC routing option that is also 

marked ‘‘short’’ would remain ineligible 

for routing during a Short Sale Period 

where that order would be routed 


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31 Exchange Rule 2623 provides that ‘‘[a]ll short 

sale orders shall be identified as ‘short’ or ‘short 

exempt’ when entered into the System. If marked 

‘short exempt,’ the Exchange shall execute, display 

and/or route a short sale order marked without 

regard to any short sale price test restriction in 

effect during a Short Sale Period, as defined in 

Exchange Rule 2614(g)(3)(A). The Exchange relies 

on the marking of an order as ‘short exempt,’ when 

handling such order, and thus, it is the entering 

Equity Member’s responsibility, not the Exchange’s 

responsibility, to comply with the requirements of 

Regulation SHO relating to marking of orders as 

‘short exempt,’ ’ Exchange Rule 2603 also requires 

that Equity Members input accurate information 

into the System. 

32 Any remaining unexecuted shares returned to 

the Exchange after routing will be handled and 

executed by the Exchange in accordance with the 

price restrictions of Regulation SHO. 

33 This differs from the Exchange’s existing Order 

Protection routing option, which routes orders to 

multiple destinations at multiple price levels 

simultaneously. See Exchange Rule 2617(b)(5)(A). 

34 The PI routing option is based on the Route 

to Improve (‘‘RTI’’) routing option available on 

EDGX which provides that ‘‘RTI may route to 

multiple destinations at a single price level 

simultaneously . . .’’. See EDGX Rule 11.11(g)(12). 

See also BZX Rule 11.13(b)(3)(G). 

35 The proposed PI routing option would not be 

available to a Market Order coupled with the PAC 

routing option that is designated as RHO because 

such order is not accepted during continuous 

trading, as described above. 

36 This is consistent with the ROOC and RTI 

routing option available on EDGX which provides 

that ‘‘[a] User may select either Route To Improve 

(‘RTI’) . . . for the following routing options: ROOC 

. . . .’’ See id. The only difference between the 

Exchange’s proposal and EDGX Rule 11.11(g)(12) is 

that on EDGX the coupling of the ROOC and RTI 

routing options is elective while the Exchange 

proposes to always include the PI routing option 

when the PAC routing is elected. 

37 See supra note 21. The unexecuted returned 

quantity of an order routed to participate in the 

primary listing exchange’s closing process will be 

cancelled since the Exchange does not currently 

provide an after-hours trading session. 

38 The Exchange believes this is consistent with 

functionality on BZX and EDGX, which may allow 

for an order coupled with their RTI routing option 

to include a time-in-force of IOC. The Exchange 

believes this would allow such an order on BZX 

and EDGX to be routed pursuant to the RTI routing 

option during continuous trading with any returned 

shares being cancelled, thereby bypassing their 

ROOC routing option. See EDGX Rule 11.11(g)(12) 

and BZX Rule 11.13(b)(3)(G) (not limiting the timein-force instructions available to be coupled with 

the RTI routing option). 

pursuant to the PI routing option, 

described below. 

The Exchange further notes that 

Equity Members must continue to 

ensure that their orders are marked in 

accordance with the requirements of 

Regulation SHO and Exchange Rule 

2623 31 and that it is the primary listing 

market’s obligation to ensure that an 

order marked short that is routed by the 

Exchange to participate in its opening, 

re-opening, or closing process is 

executed in accordance with the price 

restrictions of Regulation SHO.32

PI Routing Option 

Proposed Exchange Rule 2617(b)(5)(C) 

would describe the PI routing option as 

a routing option that will route a Limit 

Order coupled with the PAC routing 

option to multiple destinations 

simultaneously at a single price level.33

Limit Orders routed pursuant to the PI 

routing option would be designated as 

IOC in accordance with current 

Exchange Rule 2617(b)(4)(B). Like the 

proposed PAC routing option, the PI 

routing option is based on the rules of 

other equity exchanges.34 Proposed 

Exchange Rule 2617(b)(5)(C) would 

further provide that PI would not be an 

independent routing option and may 

not be selected individually upon order 

entry. As discussed more fully below, 

the proposed PI routing option would 

only be available to displayed Limit 

Orders coupled with the PAC routing 

option. Such orders would be eligible to 

be routed pursuant to the proposed PI 

routing option when: (i) Designated as 

RHO and entered during continuous 

trading and when the Exchange is not in 

the process of routing orders pursuant to 

the PAC routing option; or (ii) 

designated as IOC and entered during 

continuous trading.35

Proposed Exchange Rule 

2617(b)(5)(C)(i) would provide that a 

displayed Limit Order designated as 

RHO and coupled with the PAC routing 

option would automatically be coupled 

by the System with the PI routing 

option.36 In other words, an Equity 

Member that elects the PAC routing 

option also elects that its displayed 

Limit Order designated as RHO be 

subject to the PI routing option during 

continuous trading when not being 

routed to participate in the primary 

listing market’s re-opening or closing 

process. 

The following example illustrates the 

operation of the PI routing option. 

Assume the Exchange receives a 

displayed Limit Order designated as 

RHO to buy 300 shares at $10.00 during 

continuous trading and the Equity 

Member selected the PAC routing 

option (‘‘Order 1’’) and there are no 

orders resting on the MIAX Pearl 

Equities Book. Exchange A’s best 

displayed offer is $9.99 for 100 shares, 

Exchange B’s best displayed offer is also 

$9.99 for 100 shares, and Exchange C’s 

best displayed offer is $10.00 for 100 

shares. During continuous trading, 

Order 1 is subject to the PI routing 

option and would be routed as follows: 

100 shares are routed to Exchange A and 

100 shares are routed to Exchange B at 

$9.99. Assume that Order 1 executes 

against Exchange A and B’s best 

displayed offers at $9.99 exhausting that 

price level. Exchanges A and B update 

their best displayed offers to $10.01 for 

100 shares and $10.02 for 100 shares, 

respectively. Exchange C is now the best 

displayed offer at $10.00 for 100 shares. 

The remaining 100 shares of Order 1 

would then be routed to Exchange C to 

execute 100 shares at $10.00. 

The proposed PI routing option would 

also be available to Limit Orders 

designated as IOC. However, because 

the PI routing option is not a standalone 

routing option, Equity Members would 

be required to couple such orders with 

the PAC routing option and enter them 

during continuous trading. This 

functionality would be described under 

proposed Exchange Rule 

2617(b)(5)(C)(ii), which would provide 

that a Limit Order designated as IOC 

that is coupled with the PAC routing 

option received during continuous 

trading will automatically be defaulted 

by the System to the PI routing option. 

As stated above, only displayed Limit 

Orders designated as RHO would be 

eligible to be routed pursuant to the 

proposed PAC routing option. Proposed 

Exchange Rule 2617(b)(5)(C)(ii) would, 

therefore, reiterate that Limit Orders 

designated as IOC are not eligible to be 

routed pursuant the PAC routing option. 

As a result, Limit Orders designated as 

IOC that are eligible to be routed 

pursuant to the PI routing option will be 

routed as such even during the time 

when the Exchange is in the process of 

routing orders pursuant to the PAC 

routing option to participate in the 

primary listing market’s closing process. 

Equity Members that seek to utilize 

the PAC routing option, but not the PI 

routing option, may submit a displayed 

Limit Order designated as RHO coupled 

with the PAC routing option before the 

security opens on the primary listing 

market or during the time at which the 

Exchange is routing orders to participate 

in the primary listing market’s reopening or closing processes and, in the 

case of an opening and re-opening 

process, subsequently submit an 

instruction to cancel any unexecuted 

shares upon their return to the 

Exchange.37 Conversely, Equity 

Members that seek to utilize the PI 

routing option, but not the PAC routing 

option may (i) enter a Limit Order 

coupled with both the PAC routing 

option and time-in-force of IOC during 

continuous trading; or (ii) enter a Limit 

Order coupled with both the PAC 

routing option and time-in-force of RHO 

during continuous trading and cancel 

such order prior to the time when the 

Exchange begins to route such orders to 

participate in the primary listing 

market’s re-opening or closing 

process.38


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39 15 U.S.C. 78f(b). 

40 15 U.S.C. 78f(b)(5). 

41 See supra notes 3 and 9. 

42 Id. 

43 See supra note 9. 

44 See, e.g., BZX Rule 11.23(d) (providing that 

BZX will conduct a halt auction after a regulatory 

halt and not specifying an operational halt). 

Clarification to Exchange Rule 

2617(b)(2) 

The Exchange also proposes a minor 

clarification to Exchange Rule 

2617(b)(2). The second sentence of 

Exchange Rule 2617(b)(2) currently 

provides that, ‘‘[a]n order that is 

ineligible for routing during a Short Sale 

Period that includes a time-in-force of 

IOC will be cancelled upon entry.’’ In 

all cases, a non-routable order 

designated as IOC will first execute 

against contra-side interest on the MIAX 

Pearl Equities Book and then be 

cancelled because it is not eligible for 

routing and will never be posted to the 

MIAX Pearl Equities Book. The 

Exchange proposes to amend the second 

sentence of Exchange Rule 2617(b)(2) to 

clarify that an order that is ineligible for 

routing during a Short Sale Period that 

includes a time-in-force of IOC will first 

execute against contra-side interest on 

the MIAX Pearl Equities Book and then 

be cancelled. This change to Exchange 

Rule 2617(b)(2) is designed to better 

align the rule with System functionality 

by specifying that the order is first 

eligible for execution against contra-side 

interest before being cancelled. 

Implementation 

Due to the technological changes 

associated with this proposed change, 

the Exchange will issue a trading alert 

publicly announcing the 

implementation date of this proposed 

rule change to provide Equity Members 

with adequate time to prepare for the 

associated technological changes. The 

Exchange anticipates that the 

implementation date will be in either 

the first or second quarter of 2022. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,39 in general, and furthers the 

objectives of Section 6(b)(5),40 in 

particular, because 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 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. The 

proposed rule change would remove 

impediments to a free and open market 

and promote just and equitable 

principles of trade because it would 

provide market participants, including 

institutional firms who ultimately 

represent individual retail investors in 

many cases, with optional functionality 

that would provide them with better 

control over their orders. 

The proposed PAC routing option 

would promote just and equitable 

principles of trade, facilitate 

transactions in securities, and remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system because it 

would provide market participants with 

additional optional access to the 

primary listing market’s opening, reopening, and closing process. As a 

result, Equity Members will have access 

to additional sources of liquidity, 

potentially benefiting from improved 

execution prices and a more efficient 

marketplace. Therefore, the Exchange 

believes the proposed rule change will 

provide Equity Members with greater 

control and flexibility over their routing 

of orders, thereby facilitating 

transactions in securities and perfecting 

the mechanism of the national market 

system. The Exchange also notes that 

use of its proposed routing options is 

completely voluntary and no Equity 

Member is required to route orders 

through the Exchange and may choose 

other methods to access liquidity on 

other trading centers. 

The proposed PAC routing option 

would not impede the national market 

system because it is not designed to 

disrupt the ability of the primary listing 

market to conduct their opening, reopening, and closing processes. The 

proposed rule change is similar to 

existing routing options already 

provided by other equity exchanges,41

which the Exchange understands have 

not disrupted the primary listing 

market’s ability to conduct their 

opening, re-opening, or closing 

processes. The proposed rule change 

would simply provide Equity Members 

with another means to participate in the 

primary listing market’s opening, reopening, and closing processes. The 

primary listing markets are free to reject 

or cancel such orders should they deem 

them to be inconsistent with their 

applicable rules. 

The Exchange further believes its 

proposal promotes just and equitable 

principles of trade because the proposed 

operation of the proposed routing 

options are well established in the 

equity markets and are based on similar 

functionality at other equity 

exchanges.42 This includes the 

Exchange’s proposal to only route 

Market Orders and displayed Limit 

Orders designated as RHO pursuant to 

the PAC routing option because the 

Exchange believes this is consistent 

with operation of the ROOC routing 

option on BZX and EDGX, and the LIST 

routing option on Nasdaq.43

While the proposed rule change does 

differ from similar functionality at other 

exchanges, the Exchange does not 

believe any of these differences are 

material. For example, the Exchange 

notes that the proposed PAC routing 

option under Exchange Rule 

2617(b)(5)(B) would differ from BZX 

Rule 11.13(b)(3)(N) and EDGX Rule 

11.11(g)(8) in three primary ways. First, 

proposed Exchange Rule 2617(b)(5)(B) 

would specify that the PAC routing 

option is limited to Market Orders and 

displayed Limit Orders designated as 

RHO while both BZX and EDGX rules 

do not include that level of specificity. 

However, the Exchange believes this is 

consistent with BZX and EDGX 

functionality based on industry 

feedback. The Exchange believes not 

allowing the PAC routing option to be 

coupled with non-displayed Limit 

Orders is reasonable and consistent with 

the use of the routing option. The 

Exchange understands that potential 

users of the PAC routing option seek to 

improve the likelihood of execution of 

their orders and better accomplish this 

goal if their Limit Orders are displayed 

on the MIAX Pearl Equities Book. 

Second, proposed Exchange Rule 

2617(b)(5)(B) would specify that the 

PAC routing option would only route 

orders to the re-opening following a 

regulatory halt, while BZX and EDGX 

refer to halts generally. The Exchange 

believes this is not a material difference 

as most halts are regulatory halts and 

specifying regulatory halts within the 

rule provides additional specificity. The 

Exchange does not propose to route 

orders with a PAC routing option for 

other types of halts, such as an 

operational halt, because an operational 

halt indicates that the primary listing 

market that issued the halt has indicated 

that they may be experiencing a system 

issue across all or a subset of securities 

that inhibits their ability to operate 

normally. Additionally, some exchanges 

cancel all open orders as a result of an 

operational halt and do not accept new 

orders while the operational halt is in 

effect and/or do not conduct a reopening process once the operational 

halt concludes.44


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45 See supra note 22. 

46 See Nasdaq Rule 4758(a)(1)(A)(x) (providing 

that ‘‘[t]wo minutes before market close, all LIST 

orders on the book will begin routing to the 

security’s primary listing market for participation in 

its closing process. If a LIST order is received at or 

after a time that is two minutes before market close 

but before market close, Nasdaq will check the 

System for available shares and simultaneously 

route the remaining shares to destinations on the 

System routing table; remaining shares will be 

routed to the security’s primary listing market to 

participate in its closing process.’’). 

47 See supra note 21. The unexecuted returned 

quantity of an order routed to participate in the 

primary listing exchange’s closing process will be 

cancelled since the Exchange does not currently 

provide an after-hours trading session. 

48 See supra note 38. 

49 See supra note 38. 

50 See EDGX Rule 11.11(g)(12). See also BZX Rule 

11.13(b)(3)(G). 

Third, both BZX and EDGX require 

that an order be received before the 

primary listing market’s opening, reopening, or closing time, but do not 

specify whether that order must be 

received prior to the primary listing 

market’s order entry cut-off time or how 

and when orders are routed to the 

primary listing market to participate in 

their opening, re-opening, or closing 

process. Proposed Exchange Rule 

2617(b)(5)(B) would provide additional 

specificity as to when an order would be 

routed to participate in the primary 

listing market’s opening, re-opening, or 

closing process. The Exchange will 

continue to route orders to participate in 

the primary listing market’s opening, reopening, or (in the case of a displayed 

Limit Order) closing process after their 

order entry cut-off time to increase the 

order’s chances of participating in the 

opening, re-opening, or closing process 

while also accounting for the order 

entry cut-off time being changed/ 

extended or where the primary listing 

market continues to accept orders after 

their established order entry cut-off time 

in accordance with their rules.45 If the 

primary listing market rejects or cancels 

the order coupled with the PAC routing 

option for any reason, the Exchange will 

pass any rejection or cancellation along 

to the Equity Member that entered the 

order via existing protocols. This 

behavior is also similar to Nasdaq’s 

LIST routing option that will continue 

to route orders to participate in the 

primary listing market’s closing process 

after its order entry cut-off time.46

Equity Members that seek greater 

certainty that their orders coupled with 

the PAC routing option would 

participate in the opening, re-opening, 

or closing process at the primary listing 

market may enter their orders prior to 

the primary listing market’s order entry 

cut-off time. 

The Exchange also believes that not: 

(i) Accepting Market Orders coupled 

with the PAC routing option during 

continuous trading; (ii) making Market 

Orders eligible for routing pursuant to 

the proposed PI routing option; and (iii) 

routing Market Orders coupled with the 

PAC routing option to the primary 

listing market’s closing process 

promotes just and equitable principles 

of trade because the proposed treatment 

is consistent with the Exchange’s 

understanding of how Equity Members 

would expect such orders to be handled. 

The treatment of Market Orders coupled 

with the PAC routing option is being 

proposed in response to industry 

feedback that Equity Members do not 

intend to enter Market Orders with the 

PAC routing option during continuous 

trading or for such orders to be routed 

to participate in a primary listing 

market’s closing process. The Exchange 

understands that Equity Members 

would prefer to have such orders 

cancelled in the event they 

inadvertently entered such order. This 

proposed functionality promotes just 

and equitable principles of trade, and in 

general, protects investors and the 

public interest because it provides 

specificity within the Exchange’s rules 

and aligns system functionality with 

how the Exchange understands 

Members would expect their Market 

Orders would be handled in such 

circumstances. 

Further, the Exchange proposes to 

require that Limit Orders coupled with 

the PAC routing option are also 

automatically coupled with the PI 

routing option. In other words, the PI 

routing option could not be elected 

individually and without also electing 

the PAC routing option. This is different 

than EDGX, which allows their ROOC 

routing option to be coupled with their 

RTI routing option but does not require 

it. The Exchange does not believe this 

is a material difference and does not 

propose to offer the optionality to 

couple the PAC and PI routing options 

at this time based on input from market 

participants. As stated above, the 

Exchange understands that potential 

users of the PAC routing option seek to 

improve the likelihood of execution of 

their Limit Orders and better 

accomplish this goal if their orders are 

eligible for routing pursuant to the PI 

routing option during continuous 

trading and when the Exchange is not in 

the process of routing orders away 

pursuant to the PAC routing option. 

Requiring that the PAC routing option 

be coupled with the PI routing option 

would provide Equity Members with 

increased price improvement 

opportunities during continuous trading 

because their Limit Order would be 

eligible for routing to multiple markets 

at the single best price level 

simultaneously. Equity Members that 

seek to utilize the PAC routing option, 

but not the PI routing option, may 

submit a Limit Order designated as RHO 

and coupled with the PAC routing 

option before the security has opened 

on the primary listing market or during 

the time at which the Exchange is 

routing orders pursuant to the PAC 

routing option to participate in the 

primary listing market’s re-opening or 

closing process and, in the case of an 

opening and re-opening process, 

subsequently to cancel any unexecuted 

shares upon their return to the 

Exchange.47 Conversely, Equity 

Members that seek to utilize the PI 

routing option, but not the PAC routing 

option may (i) enter a Limit Order 

coupled with both the PAC routing 

option and time-in-force of IOC during 

continuous trading; or (ii) enter a Limit 

Order coupled with both the PAC 

routing option and time-in-force of RHO 

during continuous trading and cancel 

such order prior to the time when the 

Exchange begins to route such orders to 

participate in the primary listing 

market’s re-opening or closing 

process.48 The Exchange believes 

providing a path for Members to utilize 

the PI routing option, but not the PAC 

routing option, removes impediments to 

a free and open market because it is 

consistent with similar functionality 

available on other equity exchanges 49

and Members appreciate this 

consistency because it enables them to 

modify their systems in a singular 

manner that accommodates similar 

functionality across multiple exchanges. 

By routing to a single price level at a 

time, the PI routing option places more 

emphasis on maximizing price 

improvement for the order as opposed 

to speed of execution. Therefore, the 

proposed PI routing option promotes 

just and equitable principles of trade 

because it provides Equity Members 

with additional flexibility when 

deciding how their orders are to be 

routed by providing them the ability to 

seek out better prices over the speed of 

execution. The proposed PI routing 

option is also based on functionality 

offered by other equity exchanges.50

The Exchange also believes its 

proposed related change to Exchange 

Rule 2617(b)(2) to allow for the routing 

of orders coupled with the PAC routing 

option during a Short Sale Period 

promotes just and equitable principles 

of trade because it would provide such 

orders with increased possibilities to 

participate in the primary listing 


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Federal Register / Vol. 87, No. 41 / Wednesday, March 2, 2022 / Notices 11747 

51 See BZX Rule 11.13(b)(1) and EDGX Rule 

11.11(a) (regarding their ROOC routing option). 

52 See supra notes 3 and 9. 

53 See EDGX Rule 11.11(g)(12). See also BZX Rule 

11.13(b)(3)(G). 54 Id. 

55 15 U.S.C. 78s(b)(3)(A). 

56 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. 

market’s opening, re-opening, or closing 

process in the event of a prolonged 

Short Sale Period. Further, this 

proposed change to Exchange Rule 

2617(b)(2) is not unique and is 

consistent with functionality offered by 

other equity exchanges.51 Finally, the 

proposed clarification to Exchange Rule 

2617(b)(2) promotes just and equitable 

principles of trade and protects 

investors and the public interest 

because it better aligns the rule with 

System functionality by specifying that 

the order is first eligible for execution 

against contra-side interest before being 

cancelled. 

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. In fact, the 

Exchange believes that the proposed 

PAC routing option and related changes 

may have a positive effect on 

competition because it will enable the 

Exchange to offer functionality 

substantially similar to that offered by 

BZX, EDGX, and Nasdaq.52 The same is 

true for the proposed PI routing option 

which is also similar to functionality 

offered by EDGX and BZX.53 The 

Exchange believes its lack of this 

functionality has put it at a competitive 

disadvantage as market participants that 

seek to have their orders eligible to be 

routed for improved price improvement 

opportunities or to the primary listing 

markets’ opening, re-opening, or closing 

process have avoided sending orders to 

the Exchange in favor of other 

exchanges that offer such functionality. 

This proposal is designed to allow the 

Exchange to directly compete with other 

exchanges that offer similar routing 

functionality. The Exchange believes 

that its proposal promotes competition 

because it is designed to attract liquidity 

to the Exchange by providing market 

participants with additional routing 

functionality. 

The Exchange believes that the 

proposal will not impose any burden on 

inter-market competition, but rather 

promote competition by enhancing the 

value of the Exchange’s available 

routing options. However, since the use 

of the Exchange’s routing options is 

voluntary and Equity Members have 

numerous alternative mechanisms for 

order routing, the changes will not 

impair the ability of Equity Members to 

use other means to access competing 

trading venues. The proposed rule 

change would improve inter-market 

competition because it allows the 

Exchange to provide another means by 

which market participants would be 

able to participate in the primary listing 

market’s opening, re-opening, or closing 

processes that is similar to that 

currently provided by other 

exchanges.54

The Exchange believes that the 

proposal will not impose any burden on 

intra-market competition because it 

would be available to all Equity 

Members. Any Equity Member that 

seeks to have their order routed to 

multiple markets at a single price level 

simultaneously or to participate in the 

primary listing market’s opening, reopening, or closing processes is free to 

select the PAC routing option or seek to 

access those markets through other 

means. 

In addition, the Exchange also 

believes its proposed related change to 

Exchange Rule 2617(b)(2) to allow for 

the routing of orders coupled with the 

PAC routing option during a Short Sale 

Period will not impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act because it is 

identical to functionality offered on 

BZX, EDGX, and Nasdaq, and, therefore, 

does not alone enhance the Exchange’s 

competitive position. 

Finally, the proposed clarification to 

Exchange Rule 2617(b)(2) will not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because it also does not enhance the 

Exchange’s competitive position. 

Rather, it is simply designed to better 

align the rule with System functionality 

by specifying that the order is first 

eligible for execution against contra-side 

interest before being cancelled. 

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 55 and Rule 19b–4(f)(6) 56

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– 

PEARL–2022–06 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–PEARL–2022–06. 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 


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11748 Federal Register / Vol. 87, No. 41 / Wednesday, March 2, 2022 / Notices 

57 17 CFR 200.30–3(a)(12). 

1See Letter from Robert Books, Chair, CTA/CQ 

Operating Committee, to Vanessa Countryman, 

Secretary, Commission (Nov. 5, 2021). 

2The Participants are: Cboe BYX Exchange, Inc., 

Cboe BZX Exchange, Inc., Cboe EDGA Exchange, 

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

Inc., Financial Industry Regulatory Authority, Inc., 

The Investors’ Exchange LLC, Long-Term Stock 

Exchange, Inc., MEMX LLC, MIAX PEARL, LLC, 

Nasdaq BX, Inc., Nasdaq ISE, LLC, Nasdaq PHLX, 

Inc., The Nasdaq Stock Market LLC, New York 

Stock Exchange LLC, NYSE American LLC, NYSE 

Arca, Inc., NYSE Chicago, Inc., and NYSE National, 

Inc. (collectively, the ‘‘Participants’’). 

3The CTA Plan, pursuant to which markets 

collect and disseminate last-sale price information 

for non-Nasdaq-listed securities, is a ‘‘transaction 

reporting plan’’ under Rule 601 of Regulation NMS, 

17 CFR 242.601, and a ‘‘national market system 

plan’’ under Rule 608 of Regulation NMS, 17 CFR 

242.608. The CQ Plan, pursuant to which markets 

collect and disseminate bid/ask quotation 

information for non-Nasdaq-listed securities, is a 

‘‘national market system plan’’ under Rule 608 

under the Act, 17 CFR 242.608. See Securities 

Exchange Act Release Nos. 10787 (May 10, 1974), 

39 FR at 17799 (May 20, 1974) (declaring the CTA 

Plan effective); 15009 (July 28, 1978), 43 FR at 

34851 (Aug. 7, 1978) (temporarily authorizing the 

CQ Plan); and 16518 (Jan. 22, 1980), 45 FR at 6521 

(Jan. 28, 1980) (permanently authorizing the CQ 

Plan). The most recent restatement of both Plans 

was in 1995. 

4 15 U.S.C 78k–1(a)(3). 

5 17 CFR 242.608. 

6See Securities Exchange Act Release No. 90610, 

86 FR 18596 (Apr. 9, 2021) (File No. S7–03–20) 

(‘‘MDI Rules Release’’). 

7See Securities Exchange Act Release No. 93615 

(Nov. 19, 2021), 86 FR 67800 (Nov. 29, 2021) 

(‘‘Notice’’). Comments received in response to the 

Notice are available at https://www.sec.gov/ 

comments/sr-ctacq-2021-02/srctacq202102.htm. 

8 17 CFR 242.608(b)(2)(i). 

9The full text of the Proposed Amendments 

appear as Attachments A and B to the Notice. See 

Notice, supra note 7, 86 FR at 67802–29. 

10 17 CFR 242.614(e). The Participants have 

submitted separate amendments to implement the 

fee-related aspects of the MDI Rules. See Securities 

Exchange Act Release No. 93625 (Nov. 19, 2021), 

86 FR 67517 (Nov. 26, 2021) (File No. SR–CTA/CQ– 

2021–03). 

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–PEARL–2022–06, and 

should be submitted on or before March 

23, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.57

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2022–04211 Filed 3–1–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94310; File No. SR–CTA/ 

CQ–2021–02] 

Consolidated Tape Association; Order 

Instituting Proceedings To Determine 

Whether To Approve or Disapprove the 

Thirty-Seventh Substantive 

Amendment to the Second 

Restatement of the CTA Plan and 

Twenty-Eighth Substantive 

Amendment to the Restated CQ Plan 

February 24, 2022. 

I. Introduction 

On November 5, 2021,1 the 

Participants 2 in the Second Restatement 

of the Consolidated Tape Association 

(‘‘CTA’’) Plan and Restated 

Consolidated Quotation (‘‘CQ’’) Plan 

(collectively ‘‘CTA/CQ Plans’’ or 

‘‘Plans’’) 3 filed with the Securities and 

Exchange Commission (‘‘Commission’’), 

pursuant to Section 11A of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 4 and Rule 608 of Regulation 

National Market System (‘‘NMS’’) 

thereunder,5 a proposal (the ‘‘Proposed 

Amendments’’) to amend the Plans to 

implement the non-fee-related aspects 

of the Commission’s Market Data 

Infrastructure Rules (‘‘MDI Rules’’).6

The Proposed Amendments were 

published for comment in the Federal 

Register on November 29, 2021.7

This order institutes proceedings, 

under Rule 608(b)(2)(i) of Regulation 

NMS,8 to determine whether to 

disapprove the Proposed Amendments 

or to approve the Proposed 

Amendments with any changes or 

subject to any conditions the 

Commission deems necessary or 

appropriate after considering public 

comment. 

II. Summary of the Proposed 

Amendments 9

The Participants propose to amend 

the Plans to comply with Rule 614(e) of 

the MDI Rules. Rule 614(e) requires 

participants to the effective national 

market system plan(s) for NMS stocks to 

file by November 5, 2021, an 

amendment with the Commission that 

includes each of the requirements of 

Rule 614(e)(1)—(5).10

Specifically, Rule 614(e)(1) requires 

the amendment to conform the effective 

national market system plan(s) for NMS 

stocks to reflect the provision of 

information with respect to quotations 

for and transactions in NMS stocks that 

is necessary to generate consolidated 

market data by the national securities 

exchange and national securities 

association participants to competing 

consolidators and self-aggregators. 

Rule 614(e)(2) requires the 

amendment to include the application 

of timestamps by the national securities 

exchange and national securities 

association participants on all 

information with respect to quotations 

for and transactions in NMS stocks that 

is necessary to generate consolidated 

market data, including the time that 

such information was generated as 

applicable by the national securities 

exchange or national securities 

association and the time the national 

securities exchange or national 

securities association made such 

information available to competing 

consolidators and self-aggregators. 

Rule 614(e)(3) requires the 

amendment to include assessments of 

competing consolidator performance, 

including speed, reliability, and cost of 

data provision and the provision of an 

annual report of such assessment to the 

Commission. 

Rule 614(e)(4) requires the 

amendment to include the development, 

maintenance and publication of a list 

that identifies the primary listing 

exchange for each NMS stock. 

Rule 614(e)(5) requires the 

amendment to include the calculation 

and publication on a monthly basis of 

consolidated market data gross revenues 

for NMS stocks as specified by (i) listed 

on the NYSE; (ii) listed on Nasdaq; and 

(iii) listed on exchanges other than 

NYSE or Nasdaq. 

The following is a summary of the 

changes proposed to be made to the 

Plans by the Proposed Amendments. 

CTA Plan Proposed Amendments 

Preface 

Under the Proposed Amendments, the 

CTA Plan would include the following 

new provision: ‘‘Terms used in this plan 

have the same meaning as the terms are 

defined in Rule 600(b) under the Act.’’ 

Section I.—Definitions 

The Proposed Amendments add a 

definition of ‘‘Primary Listing 

Exchange,’’ as new Section I.(x), which 

means ‘‘the national securities exchange 

on which an Eligible Security is listed.’’ 

The proposed definition further states, 

‘‘[i]f an Eligible Security is listed on 


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