12752 Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Notices 

29 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEAMER–2022–11 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEAMER–2022–11. 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–NYSEAMER–2022–11 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. 2022–04673 Filed 3–4–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: 2 p.m. on Thursday, 

March 10, 2022. 

PLACE: The meeting will be held via 

remote means and/or at the 

Commission’s headquarters, 100 F 

Street NE, Washington, DC 20549. 

STATUS: This meeting will be closed to 

the public. 

MATTERS TO BE CONSIDERED: 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the closed meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

In the event that the time, date, or 

location of this meeting changes, an 

announcement of the change, along with 

the new time, date, and/or place of the 

meeting will be posted on the 

Commission’s website at https://

www.sec.gov. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) 

and (10) and 17 CFR 200.402(a)(3), 

(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and 

(a)(10), permit consideration of the 

scheduled matters at the closed meeting. 

The subject matter of the closed 

meeting will consist of the following 

topics: 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings; 

Resolution of litigation claims; and 

Other matters relating to examinations 

and enforcement proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting agenda items that 

may consist of adjudicatory, 

examination, litigation, or regulatory 

matters. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information; please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

Authority: 5 U.S.C. 552b. 

Dated: March 3, 2022. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2022–04922 Filed 3–3–22; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94336; File No. SR– 

NYSEArca–2022–09] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Options Proprietary Market Data Fee 

Schedule 

March 1, 2022. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on February 

23, 2022, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ 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 self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE Arca Options Proprietary Market 

Data Fee Schedule (‘‘Fee Schedule’’) to 

adopt fees for the NYSE Options OpenClose Volume Summary market data 

product, effective March 1, 2022. The 

proposed rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

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


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4See Securities Exchange Act Release No. 93132 

(September 27, 2021), 86 FR 54499 (October 1, 

2021) (SR–NYSEArca–2021–82) (Notice of Filing 

and Immediate Effectiveness of Proposed Rule 

Change to Adopt a New Historical Market Data 

Product to Be Known as the NYSE Options OpenClose Volume Summary) (‘‘Product Filing’’). 

5Members of the Exchange are OTP Firms, OTP 

Holders and ETP Holders. 

6The Exchange intends to offer the Intra-Day 

Volume Summary market data product when the 

NYSE Arca options market transitions to the Pillar 

trading platform, anticipated for Q2 2022. The 

Exchange will submit a separate proposed rule 

change to establish fees for the Intra-Day Volume 

Summary product prior to its launch. 

7The terms Customer, Professional Customer, 

Firm and Market Maker are defined in Rule 1.1, 

Definitions. 

8See Securities Exchange Act Release Nos. 89497 

(August 6, 2020), 85 FR 48747 (August 12, 2020) 

(SR–CboeBZX–2020–059); 89498 (August 6, 2020), 

85 FR 48735 (August 12, 2020) (SR–Cboe–EDGX– 

2020–36); 85817 (May 9, 2019), 84 FR 21863 (May 

15, 2019) (SR–CBOE–2019–026); 89496 (August 6, 

2020), 85 FR 48743 (August 12, 2020) (SR–C2– 

2020–010); 89586 (August 17, 2020), 85 FR 51833 

(August 21, 2020) (SR–C2–2020–012); 62887 

(September 10, 2010), 75 FR 57092 (September 17, 

2010) (SR–Phlx–2010–121); 65587 (October 18, 

2011), 76 FR 65765 (October 24, 2011) (SR– 

NASDAQ–2011–144); 61317 (January 8, 2010), 75 

FR 2915 (January 19, 2010) (SR–ISE–2009–103); 

81632 (September 15, 2017), 82 FR 44235 

(September 21, 2017) (SR–GEMX–2017–42); 91963 

(May 21, 2021), 86 FR 28662 (May 27, 2021) (SR– 

EMERALD–2021–18); 91964 (May 21, 2012), 86 FR 

28667 (May 27, 2021) (SR–PEARL–2021–24); and 

91965 (May 21, 2021), 86 FR 28665 (May 27, 2021) 

(SR–MIAX–2021–18). 

9See note 8, supra. 

10See Price List—U.S. Derivatives Data for 

Nasdaq PHLX, LLC (‘‘PHLX’’), The Nasdaq Stock 

Market, LLC (‘‘Nasdaq’’), Nasdaq ISE, LLC (‘‘ISE’’), 

and Nasdaq GEMX, LLC (‘‘GEMX’’), available at 

http://www.nasdaqtrader.com/Trader.aspx?id=

DPPriceListOptions#web. Particularly, PHLX offers 

‘‘Nasdaq PHLX Options Trade Outline (PHOTO)’’ 

and assesses $750 per month for an end of day 

subscription; Nasdaq offers the ‘‘Nasdaq Options 

Trade Outline (NOTO)’’ and assesses $500 per 

month for an end of day subscription; ISE offers the 

‘‘Nasdaq ISE Open/Close Trade Profile’’ and 

assesses $750 per month for an end of day 

subscription; and GEMX offers the ‘‘Nasdaq GEMX 

Open/Close Trade Profile’’ and assesses $500 per 

month for an end of day subscription. Cboe EDGX 

Exchange, Inc. (‘‘EDGX’’) assesses $500 per month 

for an end of day subscription and Cboe BZX 

Exchange, Inc. (‘‘BZX’’) assesses $500 per month for 

an end of day subscription. See EDGX fee schedule 

available at http://markets.cboe.com/us/options/ 

membership/fee_schedule/edgx/; and BZX fee 

schedule available at http://markets.cboe.com/us/ 

options/membership/fee_schedule/bzx/. Miami 

International Securities Exchange, LLC (‘‘MIAX’’), 

MIAX Emerald, LLC (‘‘Emerald’’) and MIAX 

PEARL, LLC (‘‘PEARL’’) each assesses $600 per 

month for an end of day subscription. See MIAX 

Fee Schedule, available at https://

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

schedule-files/MIAX_Options_Fee_Schedule_

09282021.pdf; Emerald Fee Schedule, available at 

https://www.miaxoptions.com/sites/default/files/ 

fee_schedule-files/MIAX_Emerald_Fee_Schedule_

09282021.pdf; and PEARL Fee Schedule, available 

at https://www.miaxoptions.com/sites/default/files/ 

fee_schedule-files/MIAX_Pearl_Options_Fee_

Schedule_092821.pdf. 

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

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

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule to adopt fees for the NYSE 

Options Open-Close Volume Summary,4

which will be available for purchase by 

any market participant, i.e., members 5

and non-members. The Exchange 

proposes to implement fees for the 

NYSE Options Open-Close Volume 

Summary market data product on March 

1, 2022. The proposed fees would be 

applied equally to all market 

participants and all market participants 

would receive the same information in 

the data feed. 

Background 

By way of background, pursuant to 

the Product Filing, the Exchange 

adopted two versions of the NYSE 

Options Open-Close Volume Summary: 

An End of Day Volume Summary 

market data product and an Intra-Day 

Volume Summary market data product. 

The Exchange will initially offer the 

End of Day Volume Summary market 

data product and the purpose of this 

filing is to adopt fees for the End of Day 

Volume Summary market data product.6

The End of Day Volume Summary 

provides a volume summary of trading 

activity on the Exchange at the option 

level by origin (Customer, Professional 

Customer, Firm, Broker-Dealer, and 

Market Maker 7), side of the market (buy 

or sell), contract volume, and 

transaction type (opening or closing). 

The Customer, Professional Customer, 

Firm, Broker-Dealer, and Market Maker 

volume is further broken down into 

trade size buckets (less than 100 

contracts, 100–199 contracts, greater 

than 199 contracts). The NYSE Options 

Open-Close Volume Summary is 

proprietary Exchange trade data and 

does not include trade data from any 

other exchange. It is also a historical 

data product and not a real-time data 

feed. 

The Exchange anticipates a wide 

variety of market participants to 

purchase the End of Day Volume 

Summary data product, including, but 

not limited to, individual customers, 

buy-side investors, and investment 

banks. The Exchange believes the End of 

Day Volume Summary would provide 

subscribers data that should enhance 

their ability to analyze options trade and 

volume data, and to create and test 

trading models and analytical strategies. 

The Exchange believes the End of Day 

Volume Summary will be a valuable 

tool that subscribers can use to gain 

comprehensive insight into the trading 

activity in a particular options series. 

The End of Day Volume Summary is a 

completely voluntary product, in that 

the Exchange is not required by any rule 

or regulation to make this data available 

and that potential subscribers may 

purchase it only if they voluntarily 

choose to do so. The Exchange notes 

that other exchanges offer a similar 

product.8

The End of Day Volume Summary is 

subject to direct competition from 

similar end of day options trading 

summaries offered by other options 

exchanges.9 All of these exchanges offer 

essentially the same end of day options 

trading summary information. The 

options trading summary files offered by 

the Exchange’s competitors are 

substitutes, not complements. The End 

of Day Volume Summary provides data 

on options market activity which can be 

used to infer longer-term trends. The 

information provided by one exchange 

is generally similar to that provided by 

other exchanges because order flow can 

move from one exchange to another, and 

market sentiment trends that appear on 

one exchange are likely to be similar to 

the sentiment trends on other 

exchanges. The key differentiator in the 

quality of the data depends on the 

volume of transactions on a given 

exchange. The greater the volume of 

transactions, the greater the value of the 

data. 

Proposed Rule Change 

The Exchange proposes to adopt 

subscription fees for the purchase of the 

End of Day Volume Summary on a 

monthly basis. The Exchange proposes 

to assess a fee of $750 per month for 

subscribing to the End of Day Volume 

Summary. The Exchange also proposes 

that for mid-month subscriptions, new 

subscribers will be charged for the full 

calendar month for which they 

subscribe and will be provided NYSE 

Options Open-Close Volume Summary 

data for each trading day of the calendar 

month in which they subscribed. The 

proposed monthly fees will apply to all 

market participants. The Exchange notes 

that other exchanges provide similar 

data products that may be purchased on 

a monthly basis and are comparably 

priced.10

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

furthers the objectives of Section 6(b)(5) 

of the Act,12 in particular, in that it is 


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

14 15 U.S.C. 78f(b)(4). 

15See note 8, supra. 

16The Options Clearing Corporation (‘‘OCC’’) 

publishes options and futures volume in a variety 

of formats, including daily and monthly volume by 

exchange, available here: https://www.theocc.com/ 

Market-Data/Market-Data-Reports/Volume-andOpen-Interest/Monthly-Weekly-Volume-Statistics. 

17Based on OCC data for monthly volume of 

equity-based options and monthly volume of ETFbased options, see id., the Exchange’s market share 

in multiply-listed equity and ETF options was 

10.35% for the month of November 2020 and 

12.99% for the month of November 2021. 

18See Securities Exchange Act Release No. 51808 

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

19NetCoalition v. SEC, 615 F.3d 525, 535 (D.C. 

Cir. 2010) (quoting H.R. Rep. No. 94–229 at 92 

(1975), as reprinted in 1975 U.S.C.C.A.N. 323). 

20 Id. at 535. 

21See Securities Exchange Act Release No. 34– 

90217 (October 16, 2020), 85 FR 67392 (October 22, 

2020) (SR–NYSENAT–2020–05) (internal quotation 

marks omitted), quoting Securities Exchange Act 

Release No. 59039 (December 2, 2008), 73 FR 

74770, 74781 (December 9, 2008) (ArcaBook 

Approval Order). 

22See, note 10, supra. 

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 to protect investors and the 

public interest, and that it is not 

designed to permit unfair 

discrimination among customers, 

brokers, or dealers. The Exchange also 

believes that its proposal to adopt fees 

for the End of Day Volume Summary 

market data product is consistent with 

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

furthers the objectives of Section 6(b)(4) 

of the Act 14 in particular, in that it is 

an equitable allocation of dues, fees and 

other charges among its members and 

other recipients of Exchange data. 

In adopting Regulation NMS, the 

Commission granted self-regulatory 

organizations (‘‘SROs’’) and brokerdealers increased authority and 

flexibility to offer new and unique 

market data to the public. It was 

believed that this authority would 

expand the amount of data available to 

users and consumers of such data and 

also spur innovation and competition 

for the provision of market data. 

Particularly, the End of Day Volume 

Summary further broadens the 

availability of U.S. options market data 

to investors consistent with the 

principles of Regulation NMS. 

Subscribers to the data may also be able 

to enhance their ability to analyze 

options trade and volume data and 

create and test trading models and 

analytical strategies. The Exchange 

believes the End of Day Volume 

Summary would provide a valuable tool 

that subscribers can use to gain 

comprehensive insight into the trading 

activity in a particular series, but also 

emphasizes such data is not necessary 

for trading. Moreover, other exchanges 

offer a similar data product.15

The Exchange operates in a highly 

competitive market. Indeed, there are 

currently 16 registered options 

exchanges competing for order flow. 

Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.16

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity 

and ETF options order flow. More 

specifically, in November 2021, the 

Exchange had less than 13% market 

share of executed volume of multiplylisted equity and ETF options trades.17

The Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. 

Specifically, in Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues, and also recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 18

With respect to market data, the 

decision of the United States Court of 

Appeals for the District of Columbia 

Circuit in NetCoalition v. SEC upheld 

the Commission’s reliance on the 

existence of competitive market 

mechanisms to evaluate the 

reasonableness and fairness of fees for 

proprietary market data: 

In fact, the legislative history indicates that 

the Congress intended that the market system 

‘‘evolve through the interplay of competitive 

forces as unnecessary regulatory restrictions 

are removed’’ and that the SEC wield its 

regulatory power ‘‘in those situations where 

competition may not be sufficient,’’ such as 

in the creation of a ‘‘consolidated 

transactional reporting system.’’ 19

The court agreed with the 

Commission’s conclusion that 

‘‘Congress intended that ‘competitive 

forces should dictate the services and 

practices that constitute the U.S. 

national market system for trading 

equity securities.’ ’’ 20

More recently, the Commission 

confirmed that it applies a ‘‘marketbased’’ test in its assessment of market 

data fees, and that under that test: 

the Commission considers whether the 

exchange was subject to significant 

competitive forces in setting the terms of its 

proposal for [market data], including the 

level of any fees. If an exchange meets this 

burden, the Commission will find that its fee 

rule is consistent with the Act unless there 

is a substantial countervailing basis to find 

that the terms of the rule violate the Act or 

the rules thereunder.21

Making similar historic data products 

available to market participants fosters 

competition in the marketplace, and 

constrains the ability of exchanges to 

charge supra-competitive fees. In the 

event that a market participant views 

one exchange’s data product as more or 

less attractive than the competition they 

can and do switch between similar 

products. The proposed fees are a result 

of the competitive environment, as the 

Exchange seeks to adopt fees to attract 

purchasers of the End of Day Volume 

Summary data product. 

The Exchange believes the proposed 

fees are reasonable as they are 

comparable to the fees assessed by other 

exchanges that provide similar data 

products.22 Indeed, proposing fees that 

are excessively higher than established 

fees for similar data products would 

simply serve to reduce demand for the 

Exchange’s data product, which as 

noted, is entirely optional. Like the End 

of Day Volume Summary, other 

exchanges offer similar data products 

that each provide insight into trading on 

those markets and may likewise aid in 

assessing investor sentiment. Although 

each of these similar data products 

provide only proprietary trade data and 

not trade data from other exchanges, it 

is possible investors are still able to 

gauge overall investor sentiment across 

different option series based on open 

and closing interest on any one 

exchange. Similarly, market participants 

may be able to analyze option trade and 

volume data, and create and test trading 

models and analytical strategies using 

only the End of Day Volume Summary 

data relating to trading activity on one 

or more of the other markets that 

provide similar data products. As such, 

if a market participant views another 

exchange’s data as more attractive than 

the Exchange’s data product, then such 

market participant can merely choose 

not to purchase the Exchange’s data 

product and instead purchase another 

exchange’s product, which offer similar 

data points, albeit based on that other 

market’s trading activity. 

The Exchange also believes the 

proposed fees are reasonable as they 

would support the introduction of a 

new historic market data product that is 

designed to aid investors by providing 

insight into trading on the Exchange. 


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23See, note 8, supra. 

24 Id. 

25See, note 10, supra. 

Once the End of Day Volume Summary 

is made available, it would provide 

options market participants with 

valuable information about opening and 

closing transactions executed on the 

Exchange throughout the trading day, 

similar to other trade data products 

offered by competing options 

exchanges. In turn, this data would 

assist market participants in gauging 

investor sentiment and trading activity, 

resulting in potentially better-informed 

trading decisions. As noted above, 

subscribers may also use such data to 

create and test trading models and 

analytical strategies. 

Selling historic market data is also a 

means by which exchanges compete to 

attract business. To the extent that the 

Exchange is successful in attracting 

subscribers to the Exchange’s historic 

data product, it may earn trading 

revenues and further enhance the value 

of its data products. If the market deems 

the proposed fees to be unfair or 

inequitable, subscribers can diminish or 

discontinue their use of the historic data 

and/or avail themselves of similar 

products offered by other exchanges.23

The Exchange therefore believes that the 

proposed fees reflect the competitive 

environment and would be properly and 

equally assessed to all subscribers. The 

Exchange also believes the proposed 

fees are equitable and not unfairly 

discriminatory as the fees would apply 

equally to all subscribers who choose to 

purchase such data. Nothing in this 

proposal treats any category of market 

participant any differently from any 

other category of market participant. 

The End of Day Volume Summary is 

available to all market participants, i.e., 

members and non-members, and all 

market participants would receive the 

same information in the data feed. 

As noted above, the Exchange 

anticipates a wide variety of market 

participants to purchase the Exchange’s 

data product, including but not limited 

to individual customers, buy-side 

investors and investment banks. The 

Exchange reiterates that the decision as 

to whether or not to purchase the End 

of Day Volume Summary is entirely 

optional for all potential subscribers. 

Indeed, no market participant is 

required to purchase the data product, 

and the Exchange is not required to 

make the data product available to 

market participants. Rather, the 

Exchange is voluntarily making the End 

of Day Volume Summary data product 

available, as requested by customers, 

and market participants may choose to 

receive (and pay for) this data based on 

their own business needs. Potential 

subscribers may request the data at any 

time if they believe it to be valuable or 

may decline to purchase such data. 

In sum, the fierce competition for 

order flow constrains any exchange 

from pricing its historic market data at 

a supra-competitive price, and 

constrains the Exchange here in setting 

its fees for the End of Day Volume 

Summary data product. As described 

above, the Exchange’s data product 

competes head-to-head with numerous 

products currently available in the 

marketplace. These products each serve 

as reasonable substitutes for one another 

as they are each designed to provide 

data on options market activity which 

can be used to infer longer-term trends. 

The information provided by one 

exchange is generally similar to that 

provided by other exchanges because 

order flow can move from one exchange 

to another, and market sentiment trends 

that appear on one exchange are likely 

to be similar to the sentiment trends on 

other exchanges. The key differentiator 

in the quality of the data depends on the 

volume of transactions on a given 

exchange. The greater the volume of 

transactions, the greater the value of the 

historic data. The proposed fees are 

therefore reasonable because in setting 

them, the Exchange is constrained by 

the availability of numerous substitute 

venues offering historic market data 

products and trading. Such substitutes 

need not be identical, but only 

substantially similar to the product at 

hand. 

More specifically, in setting fees for 

the End of Day Volume Summary, the 

Exchange is constrained by the fact that, 

if its pricing is unattractive to 

subscribers, subscribers have their pick 

of an increasing number of alternative 

venues to use instead of the Exchange. 

The existence of numerous alternatives 

to the Exchange ensures that the 

Exchange cannot set unreasonable fees 

for historic market data without 

suffering the negative effects of that 

decision in the fiercely competitive 

market in which it operates. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange also does not believe the 

proposed fees would cause any 

unnecessary or inappropriate burden on 

intermarket competition as other 

exchanges are free to introduce their 

own comparable historic data product 

and adopt fees to better compete with 

the Exchange’s offering. Rather, the 

Exchange believes that the proposal will 

promote competition by permitting the 

Exchange to sell a data product similar 

to those offered by other competitor 

options exchanges.24 The Exchange is 

offering the End of Day Volume 

Summary in order to keep pace with 

changes in the industry and evolving 

customer needs, and believes the data 

product will contribute to robust 

competition among national securities 

exchanges. At least eight other U.S. 

options exchanges offer a market data 

product that is substantially similar to 

the Exchange’s offering. As a result, the 

Exchange believes this proposed rule 

change permits fair competition among 

national securities exchanges. 

Furthermore, the Exchange operates 

in a highly competitive environment, 

and its ability to price End of Day 

Volume Summary is constrained by 

competition among exchanges that offer 

similar data products to their customers. 

As discussed above, there are currently 

a number of similar products available 

to market participants and investors. At 

least eight other U.S. options exchanges 

offer a market data product that is 

substantially similar to the Exchange’s 

offering, which the Exchange must 

consider in its pricing discipline in 

order to compete effectively.25 For 

example, proposing fees that are 

excessively higher than established fees 

for similar data products would simply 

serve to reduce demand for the 

Exchange’s data product, which as 

discussed, market participants are under 

no obligation to utilize or purchase. In 

this competitive environment, potential 

purchasers are free to choose which, if 

any, similar product to purchase to 

satisfy their need for market 

information. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. 

The Exchange does not believe the 

proposed rule change would cause any 

unnecessary or inappropriate burden on 

intramarket competition. Particularly, 

the proposed fees would apply 

uniformly to any subscriber, in that the 

Exchange would not differentiate 

between subscribers that purchase the 

End of Day Volume Summary and all 

subscribers would receive the same 

information in the data feed. The 

Exchange believes the proposed fees are 

set at a modest level that would allow 

interested subscribers to purchase such 

data based on their business needs. 


khammond on DSKJM1Z7X2PROD with NOTICES
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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