[Federal Register Volume 87, Number 50 (Tuesday, March 15, 2022)]
[Notices]
[Pages 14603-14607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05374]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94386; File No. SR-EMERALD-2022-08]


Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the MIAX Emerald Fee Schedule To Adopt Fees for a New Data Product 
Called the Liquidity Taker Event Report--Complex Orders

March 9, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 25, 2022, MIAX Emerald, LLC (``MIAX Emerald'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the MIAX Emerald Fee 
Schedule (the ``Fee Schedule'') to adopt fees for a new data product 
known as the Liquidity Taker Event Report--Complex Orders.\3\
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    \3\ See, generally, Exchange Rule 531(b).
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    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/emerald, at MIAX's 
principal office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange recently established a new data product known as the 
Liquidity Taker Event Report--Complex Orders (the ``Complex Order 
Report''),\4\ which will be available for purchase by Exchange Members 
\5\ on a voluntary basis. The Exchange now proposes to adopt fees for 
the Complex Order Report, which is described under Exchange Rule 
531(b).\6\ The Complex Order Report is an optional product available to 
Members. The Exchange notes that the proposed fees for the Complex 
Order Report are identical to the fees the Exchange recently 
established for subscribers to a similar report known as the Liquidity 
Taker Event Report--Simple Orders (the ``Simple Order Report'').\7\ As 
further described below, the Exchange proposes to also offer a 
discounted combined fee for Members who purchase annual subscriptions 
to both the Simple Order Report and Complex Order Report.
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    \4\ See Securities Exchange Act Release No. 94136 (February 2, 
2022), 87 FR 7223 (February 8, 2022) (SR-EMERALD-2022-02).
    \5\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
the Definitions Section of the Fee Schedule and Exchange Rule 100.
    \6\ See Exchange Rule 531(b).
    \7\ See Securities Exchange Act Release Nos. 91787 (May 6, 
2021), 86 FR 26111 (May 12, 2021) (SR-EMERALD-2021-09) (Order 
Approving Proposed Rule Change To Adopt Exchange Rule 531(a), 
Reports, To Provide for a New ``Liquidity Taker Event Report''); 
92028 (May 26, 2021), 86 FR 29608 (June 2, 2021) (SR-EMERALD-2021-
19) (Notice of Filing and Immediate Effectiveness of a Proposed Rule 
Change To Amend Its Fee Schedule To Adopt Fees for a New Data 
Product Known as the Liquidity Taker Event Report). See Exchange 
Rule 531(a) for the rule text of the Simple Order Report. See also 
Fee Schedule, Section 7), Reports, for the fees for the Simple Order 
Report.
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    By way of background, the Complex Order Report is a daily report 
that provides a Member (``Recipient Member'') with its liquidity 
response time details for executions of a Complex Order resting on the 
Strategy Book,\8\ where that Recipient Member attempted to execute 
against such resting Complex Order \9\ within a certain timeframe. It 
is important to note that the content of the Complex Order Report is 
specific to the Recipient Member and the Complex

[[Page 14604]]

Order Report will not include any information related to any Member 
other than the Recipient Member.
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    \8\ The term ``Strategy Book'' means the Exchange's electronic 
book of complex orders and complex quotes. See Exchange Rule 
518(a)(17).
    \9\ Only displayed orders will be included in the Complex Order 
Report. The Exchange notes that it does not currently offer any non-
displayed orders types on its options trading platform.
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    The following information is included in the Complex Order Report 
regarding the resting order: (A) The time the resting order was 
received by the Exchange; (B) symbol; (C) order reference number, which 
is a unique reference number assigned to a new Complex Order at the 
time of receipt; (D) whether the Recipient Member is an Affiliate \10\ 
of the Member that entered the resting order; \11\ (E) origin type 
(e.g., Priority Customer,\12\ Market Maker \13\); (F) side (buy or 
sell); and (G) displayed price and size of the resting order.\14\
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    \10\ The term ``affiliate'' of or person ``affiliated with'' 
another person means a person who, directly, or indirectly, 
controls, is controlled by, or is under common control with, such 
other person. See Exchange Rule 100.
    \11\ The Report will simply indicate whether the Recipient 
Member is Affiliate of the Member that entered the resting order and 
not include any other information that may indicate the identity of 
the Member that entered the resting order.
    \12\ The term ``Priority Customer'' means a person or entity 
that (i) is not a broker or dealer in securities, and (ii) does not 
place more than 390 orders in listed options per day on average 
during a calendar month for its own beneficial account(s). The 
number of orders shall be counted in accordance with Interpretation 
and Policy .01 to Exchange Rule 100. See Exchange Rule 100.
    \13\ The term ``Market Maker'' refers to ``Lead Market Makers'', 
``Primary Lead Market Makers'' and ``Registered Market Makers'' 
collectively. See Exchange Rule 100.
    \14\ This is the same type of information included in the Simple 
Order Report, with the only difference being the information is for 
Complex Orders on the Strategy Book. The Exchange notes that the 
displayed price and size are also disseminated via the Exchange's 
proprietary data feeds. The Exchange also notes that the displayed 
price of the resting order may be different than the ultimate 
execution price. This may occur when a resting order is displayed 
and ranked at different prices upon entry to avoid a locked or 
crossed market.
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    The following information is included in the Complex Order Report 
regarding the execution of the resting order: (A) The Complex EBBO \15\ 
at the time of execution; \16\ (B) the Complex ABBO \17\ at the time of 
execution; \18\ (C) the time first response that executes against the 
resting order was received by the Exchange and the size of the 
execution and type of the response; \19\ (D) the time difference 
between the time the resting order was received by the Exchange and the 
time the first response that executes against the resting order was 
received by the Exchange; \20\ and (E) whether the response was entered 
by the Recipient Member. If the resting order executes against multiple 
contra-side responses, only the Complex EBBO and Complex ABBO at the 
time of the execution against the first response will be included.
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    \15\ The term ``EBBO'' means the Exchange's best bid or offer. 
See Exchange Rule 100. The Complex EBBO is calculated using the 
Implied Complex MIAX Emerald Best Bid or Offer (``icEBBO'') combined 
with the best price currently available on the Strategy Book to 
establish the Exchange's best net bid and offer for a Complex 
Strategy. The icEBBO is calculated using the best price from the 
Simple Order Book for each component of a Complex Strategy including 
displayed and non-displayed trading interest. For stock-option 
orders, the icEBBO for a Complex Strategy is calculated using the 
best price (whether displayed or non-displayed) on the Simple Order 
Book in the individual option component(s), and the NBBO in the 
stock component. See Exchange Rule 518(a)(12).
    \16\ Exchange Rule 531(b)(1)(ii)(A) provides that if the resting 
order executes against multiple contra-side responses, only the 
Complex EBBO at the time of the execution against the first response 
will be included.
    \17\ The term ``ABBO'' or ``Away Best Bid or Offer'' means the 
best bid(s) or offer(s) disseminated by other Eligible Exchanges 
(defined in Exchange Rule 1400(g)) and calculated by the Exchange 
based on market information received by the Exchange from the 
Options Price Reporting Authority (``OPRA''). See Exchange Rule 100. 
The Complex ABBO is calculated using the ABBO for each component of 
a Complex Strategy to establish the best net bid and offer for a 
Complex Strategy.
    \18\ Exchange Rule 531(b)(1)(ii)(B) further provides that if the 
resting order executes against multiple contra-side responses, only 
the Complex ABBO at the time of the execution against the first 
response will be included.
    \19\ The time the Exchange received the response order would be 
in nanoseconds and would be the time the response was received by 
the Exchange's network, which is before the time the response would 
be received by the System.
    \20\ The time difference would be provided in nanoseconds.
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    The following information is included in the Complex Order Report 
regarding response(s) sent by the Recipient Member: (A) Recipient 
Member identifier; (B) the time difference between the time the first 
response that executes against the resting order was received by the 
Exchange and the time of each Complex Order sent by the Recipient 
Member, regardless of whether it executed or not; \21\ (C) size and 
type of each Complex Order submitted by Recipient Member; and (D) 
response reference number, which is a unique reference number attached 
to the response by the Recipient Member.
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    \21\ For purposes of calculating this duration of time, the 
Exchange will use the time the resting order and the Recipient 
Member's response(s) is received by the Exchange's network, both of 
which would be before the order and response(s) would be received by 
the System. This time difference would be provided in nanoseconds.
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    The Complex Order Report includes the data set for executions and 
contra-side responses that occurred within 200 microseconds of the time 
the resting order was received by the Exchange. The Complex Order 
Report contains historical data from the prior trading day and will be 
available after the end of the trading day, generally on a T+1 basis. 
The Complex Order Report does not include real-time data.
    The Exchange believes the additional data points from the matching 
engine outlined above may help Members gain a better understanding 
about their own interactions with the Exchange. The Exchange believes 
the Complex Order Report will provide Members with an opportunity to 
learn more about better opportunities to access liquidity and receive 
better execution rates. The Complex Order Report will increase 
transparency and democratize information so that all firms that 
subscribe to the Complex Order Report have access to the same 
information on an equal basis, even for firms that do not have the 
appropriate resources to generate a similar report regarding 
interactions with the Exchange.
    Members generally would use a liquidity accessing Complex Order if 
there is a high probability that it will execute against an order 
resting on the Exchange's Strategy Book. The Complex Order Report 
identifies by how much time an order that may have been marketable 
missed an execution. The Complex Order Report will provide greater 
visibility into the missed trading execution, which will allow Members 
to optimize their models and trading patterns to yield better execution 
results.
    The Complex Order Report will be a Member-specific report and will 
help Members to better understand by how much time a particular order 
missed executing against a specific resting order, thus allowing that 
Member to determine whether it wants to invest in the necessary 
resources and technology to mitigate missed executions against certain 
resting orders on the Exchange's Strategy Book.
    The Exchange proposes to provide the Complex Order Report in 
response to Member demand for data concerning the timeliness of their 
incoming Complex Orders and executions against resting Complex Orders. 
Members have periodically requested from the Exchange's trading 
operations personnel information concerning the timeliness of their 
incoming orders and efficacy of their attempts to execute against 
resting liquidity on the Exchange's Strategy Book. The purpose of the 
Complex Order Report is to provide Members the necessary data in a 
standardized format on a T+1 basis to those that subscribe to the 
Complex Order Report on an equal basis.
    The product is offered to Members on a completely voluntary basis 
in that the Exchange is not required by any rule or regulation to make 
this data available and potential subscribers may purchase the Complex 
Order Report only if they voluntarily choose to do so. It is a business 
decision of each Member

[[Page 14605]]

whether to subscribe to the Complex Order Report or not.
    The Exchange proposes to assess the same fees that it currently 
charges for Members that subscribe to the similar Simple Order Report. 
As such, the Exchange proposes to amend Section 7), Reports, of the Fee 
Schedule to provide that Members may purchase the Complex Order Report 
on a monthly or annual (12 month) basis. In particular, the Exchange 
proposes to assess Members a fee of $4,000 per month or $24,000 per 
year for a 12 month subscription to the Complex Order Report. Members 
may cancel their subscription at any time. Just as it does for the 
Simple Order Report, the Exchange proposes to specify that for mid-
month subscriptions to the Complex Order Report, new subscribers will 
be charged for the full calendar month for which they subscribe and 
will be provided Complex Order Report data for each trading day of the 
calendar month prior to the day on which they subscribed.
    The Exchange also proposes to provide a discounted rate of $40,000 
per year to Members that purchase 12 month annual subscriptions to both 
the Simple and Complex Order Reports (as compared to the 12 month 
subscription rate of $24,000 for each report on an individual 
subscription basis). The Exchange also proposes to pro-rate the 
discounted 12 month subscription fee for Members that seek to add 
either their Simple Order Report or the Complex Order Report to an 
existing subscription. In particular, the Exchange proposes that for 
those Members with an existing 12 month subscription to either the 
Simple Order Report or Complex Order Report, but not both, may add a 
subscription to the Simple Order Report or Complex Order Report during 
their current 12 month subscription. In such case, the fee for the 
added report will be pro-rated based on the $40,000 combined rate for 
the 12 month subscription discount for the remainder of the 
subscriber's current 12 month subscription, and the number of months 
remaining in the existing subscription until the Member's renewal date. 
Members would then receive the 12 month discount ($40,000 annually) for 
subscribing to both reports on the renewal date of their original 
subscription. For example, assume ``Member A'' previously subscribed to 
the Simple Order Report on September 1, 2021 and paid $24,000 for a 12 
month subscription to the Simple Order Report. ``Member A's'' current 
subscription expires on August 31, 2022 for the Simple Order Report. 
Before ``Member A's'' subscription to the Simple Order Report expires, 
``Member A'' decides to subscribe to the Complex Order Report, 
beginning March 1, 2022. Rather than being immediately charged $40,000 
for the 12 month subscription discount for subscribing to both reports 
(``Member A'' already paid $24,000 upfront for the Simple Order Report 
12 month subscription), ``Member A'' would only be charged an 
additional $8,000 to add the Complex Order Report for the remaining 
months of ``Member A's'' current 12 month subscription to the Simple 
Order Report. On September 1, 2022, assuming ``Member A'' decided to 
keep both reports, ``Member A'' would then be charged the 12 month 
discounted rate of $40,000 for both reports for the next year.
    The Exchange proposes to determine the pro-rated fee described 
above as follows: on the date that ``Member A'' wanted to begin 
subscribing to the Complex Order Report (March 1, 2022), there were six 
months remaining on ``Member A's'' existing 12 month subscription to 
the Simple Order Report (March, April, May, June, July and August). The 
added cost would be calculated as ((6 months remaining/12 months total) 
* ($40,000 discounted annual subscription for both reports-$24,000 for 
annual subscription to each report individually) = $8,000 for remaining 
6 months. Beginning September 1, 2022 (the original renewal date for 
the Simple Order Report), ``Member A'' would then be charged the 
discounted 12 month subscription rate of $40,000, assuming ``Member A'' 
renews their subscriptions to both the Simple Order Report and the 
Complex Order Report.
    The Exchange intends to begin to offer the Complex Order Report and 
charge the proposed fees on March 1, 2022.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\22\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\23\ in particular, in that it 
is 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 Complex Order Report is consistent 
with Section 6(b) of the Act \24\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \25\ in particular, in that it 
is an equitable allocation of dues, fees and other charges among its 
Members and other recipients of Exchange data.
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    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(4).
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    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations (``SROs'') and broker-dealers 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 consumers, and also spur innovation and competition for the 
provision of market data. The Exchange believes that the Report further 
broadens the availability of U.S. option market data to investors 
consistent with the principles of Regulation NMS. The Complex Order 
Report also promotes increased transparency through the dissemination 
of the Complex Order Report. Particularly, the Complex Order Report 
will benefit investors by facilitating their prompt access to the value 
added information that is included in the Complex Order Report. The 
Complex Order Report will allow Members to access information regarding 
their trading activity that they may utilize to evaluate their own 
trading behavior and order interactions.
    The Exchange operates in a highly competitive environment. Indeed, 
there are currently 16 registered options exchanges that trade options. 
Based on publicly available information, no single options exchange has 
more than 12-13% of the equity options market share and currently the 
Exchange represents only approximately 4.23% of the market share.\26\ 
The Commission has repeatedly expressed its preference for competition 
over regulatory intervention in determining prices, products, and 
services in the securities markets. Particularly, 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.'' \27\ Making similar data 
products available to market participants fosters competition in the 
marketplace, and

[[Page 14606]]

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 attractive than the competition, that market 
participant can, and often does, switch between similar products. The 
proposed fees are a result of the competitive environment of the U.S. 
options industry as the Exchange seeks to adopt fees to attract 
purchasers of the recently introduced Complex Order Report.
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    \26\ See ``The Market at a Glance,'' (last visited January 11, 
2022), available at https://www.miaxoptions.com/.
    \27\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting 
Release'').
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    The Exchange believes the proposed fees are reasonable as the 
proposed fees are both modest and identical to the fees assessed by the 
Exchange for its substantially similar Simple Order Report.\28\ Indeed, 
if the Exchange proposed fees that market participants viewed as 
excessively high, then the proposed fees would simply serve to reduce 
demand for the Exchange's data product, which as noted, is entirely 
optional. Other options exchanges are also free to introduce their own 
comparable data products with lower prices to better compete with the 
Exchange's offering. As such, the Exchange believes that the proposed 
fees are reasonable and set at a level to compete with other options 
exchanges that may choose to offer similar reports. Moreover, if a 
market participant views another exchange's potential report as more 
attractive, then such market participant can merely choose not to 
purchase the Exchange's Complex Order Report and instead purchase 
another exchange's similar data product, which may offer similar data 
points, albeit based on that other market's trading activity.
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    \28\ See supra note 7.
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    The Exchange also believes providing an annual subscription for an 
overall lower fee than a monthly subscription is equitable and 
reasonable because it would enable the Exchange to gauge long-term 
interest in the Complex Order Report. A lower annual subscription fee 
would also incentivize Members to subscribe to the Complex Order Report 
on a long-term basis, thereby improving the efficiency by which the 
Exchange may deliver the Complex Order Report by doing so on a regular 
basis over a prolonged and set period of time. The Exchange notes it 
provides an identical annual subscription for its Simple Order Report 
data and that other exchanges provide annual subscriptions for reports 
concerning their data product offerings.\29\
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    \29\ Cboe Exchange, Inc. (``Cboe'') assesses a $24,000 annual 
fee for an intra-day subscription to Open-Close Data. See https://datashop.cboe.com/options-summary-subscription.
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    The Exchange also believes the proposed fees are reasonable as they 
would support the introduction of a new market data product to Members 
that are interested in gaining insight into latency in connection with 
Complex Orders that failed to execute against a Complex Order resting 
on the Exchange's Strategy Book. The Complex Order Report accomplishes 
this by providing those Members data to analyze by how much time their 
order may have missed an execution against a contra-side order resting 
on the Strategy Book. Members may use this data to optimize their 
models and trading patterns in an effort to yield better execution 
results by calculating by how much time their order may have missed an 
execution.
    Selling market data, such as the Complex Order Report, is also a 
means by which exchanges compete to attract business. To the extent 
that the Exchange is successful in attracting subscribers for the 
Complex Order Report, 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, firms can diminish or discontinue their 
use of the data. The Exchange therefore believes that the proposed fees 
for the Complex Order Report reflect the competitive environment and 
would be properly assessed on Member users. The Exchange also believes 
the proposed fees are equitable and not unfairly discriminatory as the 
fees would apply equally to all users who choose to purchase such data. 
It is a business decision of each Member that chooses to purchase the 
Complex Order Report. The Exchange's proposed fees would not 
differentiate between subscribers that purchase the Complex Order 
Report and are set at a modest level that would allow any interested 
Member to purchase such data based on their business needs.
    The Exchange reiterates that the decision as to whether or not to 
purchase the Complex Order Report is entirely optional for all 
potential subscribers. Indeed, no market participant is required to 
purchase the Complex Order Report, and the Exchange is not required to 
make the Complex Order Report available to all investors. It is 
entirely a business decision of each Member to subscribe to the Complex 
Order Report. The Exchange offers the Complex Order Report as a 
convenience to Members to provide them with additional information 
regarding trading activity on the Exchange on a delayed basis after the 
close of regular trading hours. A Member that chooses to subscribe to 
the Complex Order Report may discontinue receiving the Complex Order 
Report at any time if that Member determines that the information 
contained in the Complex Order Report is no longer useful.
    The Exchange also believes providing a 12 month discounted fee for 
subscribers of both the Simple and Complex Order Reports is equitable 
and reasonable because it would enable the Exchange to gauge long-term 
interest in both reports. The Exchange believes that a lower annual 
combined subscription fee may incentivize Members to subscribe to both 
reports on a long-term basis, thereby allowing the Exchange to better 
gauge demand for both reports over a longer period of time. Doing so 
will enable the Exchange to better predict the future demand for both 
reports. This will allow the Exchange to better prepare and adjust 
resources for the production and delivery of both reports to Members, 
improving the efficiency by which the Exchange may deliver both reports 
over a prolonged and set period of time. The Exchange also believes 
that it is reasonable, equitable and not unfairly discriminatory to 
offer a 12 month discounted fee for Members that subscribe to both 
reports because all Members may subscribe to both reports and receive 
the discounted rate.

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 
made the Complex Order Report available in order to keep pace with 
changes in the industry and evolving customer needs and demands, and 
believes the data product will contribute to robust competition among 
national securities exchanges. As a result, the Exchange believes this 
proposed rule change permits fair competition among national securities 
exchanges.
    The Exchange believes the proposed fees would not cause any 
unnecessary or inappropriate burden on intermarket competition as other 
exchanges are free to introduce their own comparable data product with 
lower prices to better compete with the Exchange's offering. The 
Exchange operates in a highly competitive environment, and its ability 
to price the Complex Order Report is constrained by competition among 
exchanges who choose to adopt a similar product. The Exchange must 
consider this in its pricing discipline in

[[Page 14607]]

order to compete for the market data. For example, proposing fees that 
are excessively higher than fees for potentially 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. 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 also believes that the proposed fees do not cause any 
unnecessary or inappropriate burden on intermarket competition because 
the latency information that would be provided in the Complex Order 
Report would enhance competition between exchanges that offer complex 
order functionality. Members that subscribe to the Complex Order Report 
could use the information in the report to recalibrate their models and 
trading strategies to improve their overall trading experience on the 
Exchange. This may improve the Exchange's overall trading environment 
resulting in increased liquidity and order flow on the Exchange. In 
response, other exchanges may similarly seek ways to provide latency 
related data in an effort to improve their own market quality for 
complex orders.
    The Exchange does not believe the proposed rule change would cause 
any unnecessary or inappropriate burden on intramarket competition. 
Particularly, the proposed product and fees apply uniformly to any 
purchaser in that the Exchange does not differentiate between 
subscribers that purchase the Complex Order Report. The proposed fees 
are set at a modest level that would allow any interested Member to 
purchase such data based on their business needs.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\30\ and Rule 19b-4(f)(2) \31\ 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.
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    \30\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \31\ 17 CFR 240.19b-4(f)(2).
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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

    <bullet> Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#592b2c353c743a3634343c372d2a192a3c3a773e362f"><span class="__cf_email__" data-cfemail="80f2f5ece5ade3efedede5eef4f3c0f3e5e3aee7eff6">[email protected]</span></a>. Please include 
File Number SR-EMERALD-2022-08 on the subject line.

Paper Comments

    <bullet> 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-EMERALD-2022-08. 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-EMERALD-2022-08, and should be submitted 
on or before April 5, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
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    \32\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-05374 Filed 3-14-22; 8:45 am]
BILLING CODE 8011-01-P


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