17374 Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 

99See Securities Exchange Act Release Nos. 

94253 (February 15, 2022), 87 FR 9729 (February 

22, 2022) (SR–CBOE–2021–068) (Order Granting 

Approval of a Proposed Rule Change to Adopt a 

Modified Trading Schedule for Holidays) 

(‘‘Modified Holiday Trading Schedule Order’’); 

93799 (December 16, 2021), 86 FR 72654 (December 

22, 2021) (SR–CBOE–2021–074) (Notice of Filing 

and Immediate Effectiveness of a Proposed Rule 

Change to Make Juneteenth National Independence 

Day a Holiday of the Exchange); and 93646 

(November 22, 2021), 86 FR 67777 (November 29, 

2021) (SR–CBOE–2021–067) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

to Add a Held Order Instruction). The Exchange 

also corrected a marking error in the text of CBOE 

Rule 5.71(b)(2). 

100See Modified Holiday Trading Schedule 

Order, supra note 99. 

101See supra note 99. 

102 15 U.S.C. 78s(b)(2). 

103 Id. 

104 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(4)(ii). 

5 In Amendment No. 1, ICEEU expanded the 

description of the expected effect of the proposed 

changes as well as the basis for the proposed 

changes under the relevant law; however, the 

substance of the proposal is unchanged. 

6Capitalized terms used but not defined herein 

have the meanings specified in the Delivery 

Procedures or, if not defined therein, the ICE Clear 

Europe Clearing Rules. 

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–CBOE–2021–071 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–CBOE–2021–071. 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–CBOE–2021–071 and 

should be submitted by April 18, 2022. 

Rebuttal comments should be submitted 

by May 2, 2022. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 2 

The Commission finds good cause for 

approving the proposed rule change, as 

amended by Amendment No. 2, prior to 

the 30th day after the date of 

publication of notice in the Federal 

Register. Amendment No. 2 provided 

technical and conforming changes to the 

rule text to reflect CBOE rules recently 

adopted by the Exchange.99 Amendment 

No. 2 also provided additional detail on 

several aspects of the proposal, 

including the impact of the recently 

adopted modified holiday trading 

schedule 100 on Curb and notifications 

relating to catastrophic error reviews. 

The Exchange also further discussed 

why it may be appropriate to resume 

trading during GTH and Curb after a 

trading halt and clarified the application 

of CBOE Rule 5.22 during Curb. As 

described above, the Commission 

believes that Amendment No. 2 does not 

change the substance of the proposed 

rule change, but merely adds detail and 

clarification to several items of the 

proposal and makes necessary 

conforming changes to reflect the 

recently approved modified holiday 

trading schedule, as well as makes 

necessary updates to its proposed 

rules.101 Accordingly, the Commission 

finds good cause for approving the 

proposed rule change, as amended, on 

an accelerated basis, pursuant to Section 

19(b)(2) of the Act.102

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,103 that the 

proposed rule change, as modified by 

Amendment No. 2 (SR–CBOE–2021– 

071) be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.104

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06383 Filed 3–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94485; File No. SR–ICEEU– 

2022–007] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change, as Modified by 

Amendment No. 1, Relating to 

Amendments to the ICE Clear Europe 

Delivery Procedures 

March 22, 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 March 8, 

2022, ICE Clear Europe Limited (‘‘ICE 

Clear Europe’’ or the ‘‘Clearing House’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule changes described in 

Items I, II and III below, which Items 

have been prepared primarily by ICE 

Clear Europe. ICE Clear Europe filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(4)(ii) thereunder,4 such that the 

proposed rule change was immediately 

effective upon filing with the 

Commission. On March 16, 2022, ICE 

Clear Europe filed Amendment No. 1 to 

the proposed rule change to make 

certain clarifications about the purpose 

of and statutory basis for the proposed 

rule changes.5 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change, 

as modified by Amendment No. 1 

(hereafter the ‘‘proposed rule change’’), 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The principal purpose of the 

proposed amendments is for ICE Clear 

Europe to amend its Delivery 

Procedures (‘‘Delivery Procedures’’ or 

‘‘Procedures’’) to amend Part CC thereof 

(‘‘Part CC’’) to revise certain timingrelated delivery specifications 

applicable to Midland West Texas 

Intermediate American Gulf Coast 

Crude Oil Futures (‘‘Midland WTI 

Contracts’’).6


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 17375 

7 15 U.S.C. 78q–1. 

8 15 U.S.C. 78q–1(b)(3)(F). 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 15 U.S.C. 78q–1(b)(3)(F). 

11 17 CFR 240.17Ad–22(e)(10). 

12 17 CFR 240.17Ad–22(e)(10). 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f). 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, ICE 

Clear Europe 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. ICE 

Clear Europe has prepared summaries, 

set forth in sections (A), (B), and (C) 

below, of the most significant aspects of 

such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(a) Purpose 

ICE Clear Europe is proposing to 

amend Part CC of the Delivery 

Procedures to revise certain delivery 

specifications applicable to Midland 

WTI Contracts. Specifically, with 

respect to Exchange for Physicals 

(EFPs), the amendments would extend 

the deadline for EFPs to be reported to 

any time after the close of trading until 

13:00 CT/19:00 LPT on the next 

Business Day following the Last Trading 

Day instead of (09:00 CT/15:00 LPT). 

This change would expand the 

availability of the reporting deadline to 

all EFPs, and not just those that are 

executed on the Last Trading Day. The 

Clearing House has determined that this 

adjustment reflects the Clearing House’s 

current practice. Conforming timing 

updates would also be made to the 

Delivery Timetable. 

The amendments would also adjust 

the deadline for Delivery Confirmation 

Forms to 14:00 CT/20:00 LPT on the 

Business Day following the Last Trading 

Day (rather than 10:00 CT/16:00 LPT). 

(b) Statutory Basis 

ICE Clear Europe believes that the 

proposed amendments to the Delivery 

Procedures are consistent with the 

requirements of Section 17A of the Act 7

and the regulations thereunder 

applicable to it. In particular, Section 

17A(b)(3)(F) of the Act 8 requires, among 

other things, that the rules of a clearing 

agency be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

agreements, contracts, and transactions, 

the safeguarding of securities and funds 

in the custody or control of the clearing 

agency or for which it is responsible, 

and the protection of investors and the 

public interest. The proposed changes to 

the Delivery Procedures are designed to 

amend certain deadlines under the 

delivery procedures, for Midland WTI 

Contracts, to give Clearing Members 

more time to facilitate settlement and 

thereby permit more up-to-date 

information to be available at the time 

of reporting EFPs. The amendments 

would not otherwise affect the manner 

in which Midland WTI Contracts are 

cleared and settled. As a result, in ICE 

Clear Europe’s view, the amendments 

would be consistent with the prompt 

and accurate clearance and settlement of 

the contracts, and the protection of 

investors and the public interest 

consistent with the requirements of 

Section 17A(b)(3)(F) of the Act.9 (In ICE 

Clear Europe’s view, the amendments 

would not affect the safeguarding of 

funds or securities in the custody or 

control of the clearing agency or for 

which it is responsible, within the 

meaning of Section 17A(b)(3)(F).10) 

In addition, Rule 17Ad–22(e)(10) 11

provides that ‘‘[e]ach covered clearing 

agency shall establish, implement, 

maintain and enforce written policies 

and procedures reasonable designed to, 

as applicable [. . .] establish and 

maintain transparent written standards 

that state its obligations with respect to 

the delivery of physical instruments, 

and establish and maintain operational 

practices that identify, monitor and 

manage the risks associated with such 

physical deliveries.’’ As discussed 

above, the amendments would amend 

certain deadlines under the Delivery 

Procedures applicable to the settlement 

of Midland WTI Contracts. Clearance of 

the Midland WTI Contracts would not 

otherwise be affected. The amendments 

thus appropriately clarify the role and 

responsibilities of the Clearing House 

and Clearing Members with respect to 

physical delivery. As a result, ICE Clear 

Europe believes the amendments are 

consistent with the requirements of Rule 

17Ad–22(e)(10).12

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICE Clear Europe does not believe the 

proposed amendments would have any 

impact, or impose any burden, on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. The proposed 

amendments to the Delivery Procedures 

are intended to extend certain deadlines 

under the Delivery Procedures 

applicable to the delivery of Midland 

WTI Contracts. ICE Clear Europe does 

not believe the amendments would 

adversely affect competition among 

Clearing Members, materially affect the 

cost of clearing, adversely affect access 

to clearing in the new contracts for 

Clearing Members or their customers, or 

otherwise adversely affect competition 

in clearing services. Accordingly, ICE 

Clear Europe does not believe that the 

amendments would impose any impact 

or burden on competition that is not 

appropriate in furtherance of the 

purpose of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed amendments have not been 

solicited or received by ICE Clear 

Europe. ICE Clear Europe will notify the 

Commission of any comments received 

with respect to the proposed rule 

change. 

III. Date of Effectiveness of the 

Proposed Rule and Timing for 

Commission Action 

The foregoing rule change has become 

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

of the Act 13 and paragraph (f) of Rule 

19b–4 14 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. 

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– 

ICEEU–2022–007 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. 


jspears on DSK121TN23PROD with NOTICES1
17376 Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 

15 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. 

4A Pegged Order is a Limit Order that does not 

route with a working price that is pegged to a 

dynamic reference price. If the designated reference 

price is higher (lower) than the limit price of a 

Pegged Order to buy (sell), the working price will 

be the limit price of the order. See Rule 7.31–E(h). 

5NYSE Arca Rule 1.1 defines PBB as the highest 

Protected Bid and PBO as the lowest Protected 

Offer. Rule 1.1 also provides that ‘‘PBBO’’ means 

the Best Protected Bid and the Best Protected Offer. 

6The Exchange adopted Rule 7.31–E(h)(3) 

governing Discretionary Pegged Orders in 2016 but 

has not yet announced the implementation of the 

order type. See Securities Exchange Act Release No. 

78181 (June 28, 2016), 81 FR 43297 (July 1, 2016) 

(SR–NYSEArca–2016–44) (Notice of Filing of 

Amendment No. 1, and Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 1, to Add a New Discretionary 

Pegged Order). Accordingly, the current quote 

stability coefficients have not been in operation on 

the Exchange. 

All submissions should refer to File 

Number SR–ICEEU–2022–007. 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 such 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Europe and on ICE 

Clear Europe’s website at https://

www.theice.com/clear-europe/ 

regulation. 

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–ICEEU–2022–007 

and should be submitted on or before 

April 18, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06384 Filed 3–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94490; File No. SR– 

NYSEArca–2022–13] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To Amend Rule 7.31– 

E(h)(3) 

March 22, 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 March 9, 

2022, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 

Rule 7.31–E(h)(3) with respect to 

Discretionary Pegged Orders. The 

proposed 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, 

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 

Rule 7.31–E(h)(3) to modify certain 

factors relevant to the quote instability 

calculation for Discretionary Pegged 

Orders. Specifically, the Exchange 

proposes to amend Rule 7.31– 

E(h)(3)(D)(i)(D)(1)(a), which sets forth 

the quote stability coefficients. Under 

Rule 7.31–E(h)(3)(D)(i)(D)(3), the 

Exchange may modify the quote 

stability coefficients at any time, subject 

to a filing of a proposed rule change. 

The Exchange proposes such changes in 

this rule filing. 

Discretionary Pegged Orders 

Rule 7.31–E(h)(3) provides for 

Discretionary Pegged Orders, which are 

Pegged Orders 4 that may exercise price 

discretion from their working price to a 

discretionary price in order to trade 

with contra-side orders on the NYSE 

Arca Book, except during periods of 

quote instability as defined in Rule 

7.31–E(h)(3)(D). 

Rule 7.31–E(h)(3)(D) provides that the 

Exchange uses a quote instability 

calculation to assess a security’s ‘‘quote 

instability factor,’’ or the probability of 

an imminent change to the current PBB 

to a lower price or PBO to a higher 

price.5 When quoting activity in a 

security meets predefined criteria and 

the quote instability factor calculated is 

greater than the Exchange’s defined 

‘‘quote instability threshold,’’ the 

Exchange treats the quote as unstable 

(‘‘quote instability’’ or a ‘‘crumbling 

quote’’). 

Rule 7.31–E(h)(3)(D)(i) provides that 

the Exchange determines a quote to be 

unstable when, among other factors, the 

quote instability factor result from the 

quote stability calculation is greater 

than the quote instability threshold. To 

perform the quote stability calculation 

and determine the quote instability 

factor, the Exchange employs a fixed 

formula utilizing the quote stability 

coefficients and quote stability variables 

set forth in Rule 7.31– 

E(h)(3)(D)(i)(D)(1)(a) and Rule 7.31– 

E(h)(3)(D)(i)(D)(1)(b), respectively. 

Proposed Rule Change 

The Exchange proposes to update the 

quote stability coefficients used in the 

quote instability calculation, which 

have not been modified since Rule 7.31– 

E(h)(3) was adopted.6 The proposed 

changes are intended to update the 

quote stability coefficients so that they 

are based on current market data and 

better calibrated to function on an 

exchange without an intentional delay 

mechanism and with deeper liquidity 


jspears on DSK121TN23PROD with NOTICES1