12756 Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Notices 

26 15 U.S.C. 78s(b)(3)(A). 

27 17 CFR 240.19b–4(f)(2). 

28 15 U.S.C. 78s(b)(2)(B). 

29 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 93698 

(December 1, 2021), 86 FR 69301 (December 7, 

2021) (‘‘Notice’’). 

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

5See Securities Exchange Act Release No. 94000 

(January 19, 2022), 87 FR 3865 (January 25, 2022). 

The Commission designated March 7, 2022, as the 

date by which the Commission shall approve or 

disapprove, or institute proceedings to determine 

whether to disapprove, the proposed rule change. 

6 In Amendment No. 1, the Exchange amended 

the proposal to provide additional detail, 

clarification, and justification regarding the 

proposed rule change and make a non-substantive 

change to streamline the proposed rule text. 

Amendment No. 1 is available on the Commission’s 

website at https://www.sec.gov/comments/sremerald-2021-38/sremerald202138-20116580- 

268058.pdf. 

7See proposed Rule 531(c); Amendment No. 1, at 

4. The Exchange states that the proposed Service 

would be available to all members who choose to 

subscribe, and that any member may discontinue its 

subscription at any time. See Amendment No. 1, at 

4 n.4., 14. The Exchange also states that it intends 

to submit a separate rule filing with the 

Commission to propose fees for the Service. See id. 

at 4 n.4. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 26 of the Act and 

subparagraph (f)(2) of Rule 19b–4 27

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 28 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEArca–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–NYSEArca–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–NYSEArca–2022–09 and 

should be submitted on or before March 

28, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–04675 Filed 3–4–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94335; File No. SR– 

EMERALD–2021–38] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing of 

Amendment No. 1 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Amend 

Exchange Rule 531 To Provide for a 

New Service Called the High Precision 

Network Time Signal Service 

March 1, 2022. 

I. Introduction 

On November 19, 2021, MIAX 

Emerald, LLC (‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

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

19b–4 thereunder,2 a proposed rule 

change to amend Exchange Rule 531, 

Reports and Market Data Products, to 

provide for a new service called the 

‘‘High Precision Network Time Signal 

Service.’’ The proposed rule change was 

published for comment in the Federal 

Register on December 7, 2021.3 On 

January 19, 2022, pursuant to Section 

19(b)(2) of the Act,4 the Commission 

designated a longer period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to disapprove the proposed 

rule change.5 On February 18, 2022, the 

Exchange filed Amendment No. 1 to the 

proposed rule change.6 The Commission 

has received no comments on the 

proposed rule change. This order 

provides notice of the filing of 

Amendment No. 1 to the proposed rule 

change, and grants approval to the 

proposed rule change, as modified by 

Amendment No. 1, on an accelerated 

basis. 

II. Description of the Proposed Rule 

Change, as Modified by Amendment 

No. 1 

The Exchange proposes to provide for 

a new, optional service called the ‘‘High 

Precision Network Time Signal Service’’ 

(‘‘Service’’), which would enable 

members to synchronize their internal 

devices to the same time as the 

Exchange’s devices with high 

precision.7

According to the Exchange, the U.S. 

Government’s Global Positioning 

Satellite (‘‘GPS’’) clock time signal is the 

publicly-available benchmark that the 

Exchange and most, if not all, members 

use to synchronize their internal 


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Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Notices 12757 

8See Amendment No. 1, at 5. The Exchange states 

that a ‘‘primary clock device’’ is a precision 

‘‘parent’’ clock that provides timing signals to 

synchronized secondary ‘‘child’’ clocks as part of an 

independent clock network. See id. at 5 n.8. 

9According to the Exchange, the term 

‘‘Coordinated Universal Time’’ is defined as the 

international standard of time that is kept by atomic 

clocks around the world, and is the primary time 

standard by which the world regulates clocks and 

time. See id. at 5 n.8. 

10See id. at 5. According to the Exchange, 

‘‘Precision Time Protocol’’ is a method used to 

synchronize clocks through a computer network. 

See id. at 5 n.8. 

11See id. at 6. According to the Exchange, 

‘‘Enhanced PTP’’ is commonly defined as a 

precision time protocol that is at a sub-nanosecond 

level. See id. at 6 n.9. 

12See id. at 6. 

13See id. 

14See id. 

15See id. 

16 In those cases, the Exchange and these 

members use separate Enhanced PTP devices. See 

id. 

17See id. at 6–7. 18See id. at 7. 19See id. 20See id. 21See id. at 7. The Exchange states that the 

proposed Service would not include any trading 

data regarding the member’s activity on the 

Exchange or include any data from other trading 

activity on the Exchange. See id. at 10. 22See id. See also MIAX Emerald Fee Schedule, 

Section 5, System Connectivity Fees. The Exchange 

states that it does not propose to include additional 

connectivity options or modify existing 

connectivity options as part of this proposal, and 

that members may continue to use their existing 

methods to connect and send orders to the 

Exchange. See Amendment No. 1, at 10. 23According to the Exchange, an ‘‘Enhanced PTP 

clock synchronization device’’ captures time and 

coordinates time synchronization within a network 

at a sub-nanosecond level. See Amendment No. 1, 

at 8 n.13. In conjunction with the proposed Service, 

a member’s Enhanced PTP clock synchronization 

device would be used to synchronize clocks within 

the member’s own system at a sub-nanosecond 

level, enabling the member to record certain times 

an order or message traveled through and leaves the 

member’s system at a sub-nanosecond level. Some 

members may currently have an Enhanced PTP 

clock synchronization device within their own 

network. This device is not provided by the 

Exchange. The Exchange states that other members 

that do not currently have an Enhanced PTP clock 

synchronization device would need to acquire one 

from a third party vendor, of which there are 

several providers. See id. at 8. 

24See id. at 7–8. 

25See id. at 4–5. 

26See id. at 8. 

27See id. 

28See id. at 8–9. The Exchange states that it sends 

members an acknowledgement message that their 

order or message was received by the Exchange, 

which includes the time of receipt at a nanosecond 

level. See id. at 9 n.14. 

29For example, according to the Exchange, a 

member may use this information when analyzing 

the efficacy of their various connections and 

whether a connection is performing as expected or 

experiencing a delay. A member may then decide 

to rebalance the amount of orders and/or messages 

over its various connections to ensure each 

connection is operating with maximum efficiency. 

See id. at 9. 

30See id. 

31See id. at 10. 

primary clock devices.8 Typically, a 

recipient’s GPS antenna serves as a time 

signal receiver, which then feeds a 

primary clock device the Coordinated 

Universal Time (referred to as ‘‘UTC’’) 9

using a Precision Time Protocol 

(‘‘PTP’’).10

Currently, in terms of the Exchange 

synchronizing its own devices, the 

Exchange states that its primary clock 

feeds a time signal to the Exchange’s 

timestamping devices within the 

Exchange’s own network and provides 

sub-nanosecond level synchronization 

using an enhanced PTP (‘‘Enhanced 

PTP’’).11 This Enhanced PTP time signal 

is used to synchronize the Exchange’s 

capture devices (used to timestamp 

orders and messages as they travel 

through the Exchange’s System) with 

each other at a sub-nanosecond level.12

In terms of members synchronizing 

their internal devices, the Exchange 

states that many members today attempt 

to synchronize their primary clock 

devices to the publicly-available GPS 

time signal by receiving this time signal 

through a GPS-capable antenna.13

Members can thereby synchronize their 

primary clock devices to the GPS 

network time to within an accuracy of 

approximately 30 nanoseconds.14 Using 

PTP, members can then synchronize 

their internal devices to their primary 

clock devices to within a few 

nanoseconds of one another.15

Alternatively, some members may use 

their own Enhanced PTP with their 

primary clock devices to synchronize 

their timestamping devices at a subnanosecond level.16

However, because the Exchange and 

members independently access time 

signals from the GPS network and 

synchronize those time signals with 

their own primary clock devices, the 

Exchange states that measurement times 

of market events by the Exchange and a 

member may oscillate by approximately 

30 or more nanoseconds.17 This may 

lead to a member’s time calculations of 

how long it took for an order or message 

to leave their systems and reach the 

intended trading center to err by as 

many as 30 nanoseconds.18 According 

to the Exchange, this discrepancy may 

impair the member’s ability to fully 

understand latencies within their own 

systems and whether they need to adjust 

their systems or trading models.19

The proposed Service would provide 

members with the Exchange’s time 

signal at a sub-nanosecond level, 

allowing members to synchronize their 

own primary clock devices to the 

Exchange’s primary clock device.20 The 

Exchange states that this subnanosecond time signal would tell the 

member the Exchange’s time at a subnanosecond level at a particular point in 

time.21 Subscribing members would 

receive the time signal from the 

Exchange via a 1 gigabit connection that 

is currently offered by the Exchange and 

used by members and non-members to 

connect to the Exchange’s system.22 By 

then employing an Enhanced PTP clock 

synchronization device,23 subscribing 

members could use that time signal to 

synchronize their own primary clock to 

the Exchange’s primary clock at the 

more acute sub-nanosecond level.24

The Exchange proposes to provide the 

Service in response to member demand 

for tighter and more accurate clock 

synchronization options with the 

Exchange’s network.25 In this regard, the 

Exchange asserts that members may use 

the proposed Service for several 

purposes.26 First, according to the 

Exchange, the proposed Service would 

enable members to more precisely 

measure latency between their network 

and that of the Exchange, as it would 

allow them to better understand the 

times at which an order or message 

reached certain points when traveling 

from their network to the Exchange.27

Second, members may use the proposed 

Service to analyze the efficiency of their 

network and connections when 

receiving messages back from the 

Exchange (such as those regarding 

whether an order was accepted, 

rejected, or executed), measuring 

message traversal times by comparing 

their message’s timestamp to the 

Exchange’s matching engine timestamp 

from Exchange-generated 

acknowledgement messages.28 Third, 

members may then use these enhanced 

latency measurements to better analyze 

latencies within their own systems and 

better assess the health of their network 

and that their systems are working as 

intended, and leverage this information 

to optimize their network, models, and 

trading patterns to potentially improve 

their interactions with the Exchange.29

Finally, the Exchange states that 

members may use the proposed Service 

to assist with determining compliance 

with certain regulatory requirements, 

trade surveillance, and evaluating 

compliance with certain clock 

synchronization requirements.30

Separately, to enhance the clarity of 

Rule 531 in light of the proposed 

addition of the Service, the Exchange 

proposes to amend the title of Exchange 

Rule 531 to include the phrase ‘‘and 

Services’’ so that the title would read as 

‘‘Reports, Market Data Products and 

Services.’’ 31


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12758 Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Notices 

32 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

33 15 U.S.C. 78f(b)(5). 

34See Securities Exchange Act Release No. 77565 

(April 8, 2016), 81 FR 22136, 22138 (April 14, 2016) 

(SR–FINRA–2016–005) (Order Approving a 

Proposed Rule Change To Reduce the 

Synchronization Tolerance for Computer Clocks 

That Are Used To Record Events in NMS Securities 

and OTC Equity Securities). 

35See Securities Exchange Act Release No. 79318 

(November 15, 2016), 81 FR 84696, 84785–86 

(November 23, 2016) (File No. 4–698) (Order 

Approving the National Market System Plan 

Governing the Consolidated Audit Trail). 

36 15 U.S.C. 78s(b)(2). 

37 Id. 

38 17 CFR 200.30–3(a)(12). 

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change, as 

modified by Amendment No. 1, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.32 In particular, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,33 which requires, among other 

things, that the rules of a national 

securities exchange be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, 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, and that those rules not 

be designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

As discussed above, the Exchange’s 

proposed Service would provide 

members with the ability to improve the 

degree of clock synchronization 

between their systems and the 

Exchange’s systems. The Commission 

has stated previously that clock 

synchronization is a critical component 

of today’s market structure,34 and that it 

is reasonable to expect that finer clock 

synchronization for market participants 

will evolve over time.35 The 

Commission believes that the finer clock 

synchronization enabled by the 

proposed Service is consistent with 

such evolvement and advancements in 

technology, and would provide 

members with a tool that enables them 

to more precisely calculate and better 

understand order and message latencies. 

The Commission therefore believes that 

the proposal is reasonably designed to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, consistent 

with Section 6(b)(5) of the Act. In 

addition, the proposal would promote 

just and equitable principles of trade 

and not permit unfair discrimination, 

consistent with Section 6(b)(5) of the 

Act, insofar as the proposed Service 

would be available to all Exchange 

members. 

The Commission also believes that the 

proposal is consistent with Section 

6(b)(5) of the Act because it would help 

protect investors and the public interest 

to the extent that improved clock 

synchronization would enhance 

subscribing members’ ability to comply 

with regulatory requirements and 

perform trade surveillance. In addition, 

the proposed revision of Exchange Rule 

531’s title to ‘‘Reports, Market Data 

Products and Services’’ should help 

market participants understand what is 

set forth in the rule, consistent with the 

Section 6(b)(5) goal of protecting 

investors and the public interest. 

IV. Solicitation of Comments on 

Amendment No. 1 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether Amendment No. 1 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 No. SR– 

EMERALD–2021–38 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 No. 

SR–EMERALD–2021–38. The file 

numbers 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 such 

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 publicly available. All 

submissions should refer to File No. 

SR–EMERALD–2021–38 and should be 

submitted on or before March 28, 2022. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

The Commission finds good cause to 

approve the proposed rule change, as 

modified by Amendment No. 1, prior to 

the thirtieth day after the date of 

publication of notice of the amended 

proposal in the Federal Register. In 

Amendment No. 1, the Exchange 

amended the proposal to provide 

additional detail, clarification, and 

justification regarding the proposed rule 

change and make a non-substantive 

change to streamline the proposed rule 

text. Amendment No. 1 adds clarity and 

justification to the proposal, and does 

not alter the proposed Service 

functionality from what is set forth in 

the Notice, which was subject to a full 

comment period. Accordingly, the 

Commission finds good cause, pursuant 

to Section 19(b)(2) of the Act,36 to 

approve the proposed rule change, as 

modified by Amendment No. 1, on an 

accelerated basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,37 that the 

proposed rule change (SR–EMERALD– 

2021–38), as modified by Amendment 

No. 1, be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.38

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–04674 Filed 3–4–22; 8:45 am] 

BILLING CODE 8011–01–P 


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