Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices 16515 

28 For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

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. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4. 

days. Waiver of the operative delay 

would therefore permit uninterrupted 

continuation of the MWCB pilot while 

the Commission reviews the NYSE’s 

proposed rule change to make the Pilot 

Rules permanent. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change as operative upon 

filing.28

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 will institute proceedings 

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2022–013 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–2022–013. 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 (https://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–2022–013 

and should be submitted on or before 

April 13, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06102 Filed 3–22–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94448; File No. SR–IEX– 

2022–01] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Pilot Period for the Market Wide Circuit 

Breaker to April 18, 2022 

March 17, 2022. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on March 

16, 2022, the Investors Exchange LLC 

(‘‘IEX’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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 

Pursuant to the provisions of Section 

19(b)(1) under the Act,4 and Rule 19b– 

4 thereunder,5 the Exchange is filing 

with the Commission a proposed rule 

change to amend IEX Rule 11.280 to 

extend the pilot period for the marketwide circuit breaker to the close of 

business on April 18, 2022. IEX has 

designated this rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A) 

of the Act 6 and provided the 

Commission with the notice required by 

Rule 19b–4(f)(6) thereunder.7

The text of the proposed rule change 

is available at the Exchange’s website at 

www.iextrading.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 these statement may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 Market-Wide Circuit Breaker 

(‘‘MWCB’’) rules, including paragraphs 

(a) through (d) and (f) of IEX Rule 

11.280, provide an important, automatic 

mechanism that is invoked to promote 

stability and investor confidence during 

periods of significant stress when cash 

equities securities experience extreme 

market-wide declines. The MWCB rules 

are designed to slow the effects of 

extreme price declines through 

coordinated trading halts across both 

cash equity and equity options 

securities markets. 

The cash equities rules governing 

MWCBs were first adopted in 1988 and, 

in 2012, all U.S. cash equity exchanges 

and FINRA amended their cash equities 


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16516 Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices 

8See Securities Exchange Act Release No. 67090 

(May 31, 2012), 77 FR 33531 (June 6, 2012) (SR– 

BATS–2011–038; SR–BYX–2011–025; SR–BX– 

2011–068; SR–CBOE–2011–087; SR–C2–2011–024; 

SR–CHX–2011–30; SR–EDGA–2011–31; SR–EDGX– 

2011–30; SR–FINRA–2011–054; SR–ISE–2011–61; 

SR–NASDAQ–2011–131; SR–NSX–2011–11; SR– 

NYSE–2011–48; SR–NYSEAmex–2011–73; SR– 

NYSEArca–2011–68; SR–Phlx–2011–129). 

9 IEX’s Pilot Rule has been effective since its 

approval for registration as a national securities 

exchange in 2016. See Securities Exchange Act 

Release No. 78101 (June 17, 2016), 81 FR 41142 

(June 23, 2016) (File No. 10–222). 

10The rules of the equity options exchanges 

similarly provide for a halt in trading if the cash 

equity exchanges invoke a MWCB Halt. See, e.g., 

NYSE Arca Rule 6.65–O(d)(4). 

11See Securities Exchange Act Release No. 67091 

(May 31, 2012), 77 FR 33498 (June 6, 2012). An 

amendment to the LULD Plan adding IEX as a 

Participant was filed with the Commission on 

August 11, 2016, and became effective upon filing 

pursuant to Rule 608(b)(3)(iii) of the Act. See 

Securities Exchange Act Release No. 78703 (August 

26, 2016), 81 FR 60397 (September 1, 2016) (File 

No. 4–631). The LULD Plan provides a mechanism 

to address extraordinary market volatility in 

individual securities. 

12See, e.g., Securities Exchange Act Release No. 

78703 (August 26, 2016), 81 FR 60397 (September 

1, 2016) (File No. 4–631) (describing the several 

extensions of the LULD Plan pilot period). 

13See Securities Exchange Act Release No. 85623 

(April 11, 2019), 84 FR 16086 (April 17, 2019). 

14See Securities Exchange Act Release No. 85576 

(April 9, 2019), 84 FR 15237 (April 15, 2019) (SR– 

IEX–2019–04). 

15See Securities Exchange Act Release No. 87298 

(October 15, 2019), 84 FR 56255 (October 21, 2019) 

(SR–IEX–2019–11). 

16See Securities Exchange Act Release No. 90128 

(October 8, 2020), 85 FR 65127 (October 14, 2020) 

(SR–IEX–2020–17). 

17See Securities Exchange Act Release No. 93323 

(October 14, 2021), 86 FR 58125 (October 20, 2021) 

(SR–IEX–2021–12). 

18See https://www.cmegroup.com/content/dam/ 

cmegroup/market-regulation/rule-filings/2020/9/20- 

392_1.pdf; https://www.cmegroup.com/marketregulation/rule-filings/2020/9/20-392_2.pdf. 

19See Report of the Market-Wide Circuit Breaker 

(‘‘MWCB’’) Working Group Regarding the March 

2020 MWCB Events, submitted March 31, 2021 (the 

‘‘Study’’), available at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse/Report_of_the_

Market-Wide_Circuit_Breaker_Working_Group.pdf. 

uniform rules on a pilot basis 8 (the 

‘‘Pilot Rules,’’ i.e., for IEX, Rule 

11.280(a)–(d) and (f) 9). The Pilot Rules 

currently provide for trading halts in all 

cash equity securities during a severe 

market decline as measured by a singleday decline in the S&P 500 Index 

(‘‘SPX’’).10 Under the Pilot Rules, a 

market-wide trading halt will be 

triggered if SPX declines in price by 

specified percentages from the prior 

day’s closing price of that index. The 

triggers are set at three circuit breaker 

thresholds: 7% (Level 1), 13% (Level 2), 

and 20% (Level 3). A market decline 

that triggers a Level 1 or Level 2 halt 

after 9:30 a.m. and before 3:25 p.m. 

would halt market-wide trading for 15 

minutes, while a similar market decline 

at or after 3:25 p.m. would not halt 

market-wide trading. (Level 1 and Level 

2 halts may occur only once a day.) A 

market decline that triggers a Level 3 

halt at any time during the trading day 

would halt market-wide trading for the 

remainder of the trading day. 

The Commission approved the Pilot 

Rules, the term of which was to 

coincide with the pilot period for the 

Plan to Address Extraordinary Market 

Volatility Pursuant to Rule 608 of 

Regulation NMS (the ‘‘LULD Plan’’),11

including any extensions to the pilot 

period for the LULD Plan.12 In April 

2019, the Commission approved an 

amendment to the LULD Plan for it to 

operate on a permanent, rather than 

pilot, basis.13 In conjunction with the 

proposal to make the LULD Plan 

permanent, the Exchange amended IEX 

Rule 11.280 to extend the Pilot Rules’ 

effectiveness to the close of business on 

October 18, 2019.14 The Exchange 

subsequently amended IEX Rule 11.280 

to untie the Pilot Rules’ effectiveness 

from that of the LULD Plan and 

extended the Pilot Rules’ effectiveness 

several times: (i) From October 18, 2019 

to October 18, 2020; 15 from October 18, 

2020 to October 18, 2021; 16 and from 

October 18, 2021 to March 18, 2022.17

The Exchange now proposes to amend 

IEX Rule 11.280 to extend the pilot one 

more month, to the close of business on 

April 18, 2022. This filing does not 

propose any substantive or additional 

changes to IEX Rule 11.280. 

The MWCB Task Force and the March 

2020 MWCB Events 

In late 2019, Commission staff 

requested the formation of a MWCB 

Task Force (‘‘Task Force’’) to evaluate 

the operation and design of the MWCB 

mechanism. The Task Force included 

representatives from the SROs, the 

Commission, CME, the Commodity 

Futures Trading Commission (‘‘CFTC’’), 

and the securities industry and 

conducted several organizational 

meetings in December 2019 and January 

2020. 

In Spring 2020, the MWCB 

mechanism proved itself to be an 

effective tool for protecting markets 

through turbulent times. In March 2020, 

at the outset of the worldwide COVID– 

19 pandemic, U.S. equities markets 

experienced four MWCB Level 1 halts, 

on March 9, 12, 16, and 18, 2020. In 

each instance, the markets halted as 

intended upon a 7% drop in the S&P 

500 Index, and resumed as intended 15 

minutes later. 

In response to these events, in the 

Spring and Summer of 2020, the Task 

Force held ten meetings that were 

attended by Commission staff, with the 

goal of performing an expedited review 

of the March 2020 halts and identifying 

any areas where the MWCB mechanism 

had not worked properly. Given the risk 

of unintended consequences, the Task 

Force did not recommend changes that 

were not rooted in a noted deficiency. 

The Task Force recommended creating 

a process for a backup reference price in 

the event that SPX were to become 

unavailable, and enhancing functional 

MWCB testing. The Task Force also 

asked CME to consider modifying its 

rules to enter into a limit-down state in 

the futures pre-market after a 7% 

decline instead of 5%. CME made the 

requested change, which became 

effective on October 12, 2020.18

The MWCB Working Group’s Study 

On September 17, 2020, the Director 

of the Commission’s Division of Trading 

and Markets asked the SROs to conduct 

a more complete study of the design and 

operation of the Pilot Rules and the 

LULD Plan during the period of 

volatility in the Spring of 2020. 

In response to the request, the SROs 

created a MWCB ‘‘Working Group’’ 

composed of SRO representatives and 

industry advisers that included 

members of the advisory committees to 

both the LULD Plan and the NMS Plans 

governing the collection, consolidation, 

and dissemination of last-sale 

transaction reports and quotations in 

NMS Stocks. The Working Group met 

regularly from September 2020 through 

March 2021 to consider the 

Commission’s request, review data, and 

compile its study. The Working Group’s 

efforts in this respect incorporated and 

built on the work of an MWCB Task 

Force. 

The Working Group submitted its 

study to the Commission on March 31, 

2021 (the ‘‘Study’’).19 In addition to a 

timeline of the MWCB events in March 

2020, the Study includes a summary of 

the analysis and recommendations of 

the MWCB Task Force; an evaluation of 

the operation of the Pilot Rules during 

the March 2020 events; an evaluation of 

the design of the current MWCB system; 

and the Working Group’s conclusions 

and recommendations. 

In the Study, the Working Group 

concluded: (1) The MWCB mechanism 

set out in the Pilot Rules worked as 

intended during the March 2020 events; 

(2) the MWCB halts triggered in March 

2020 appear to have had the intended 

effect of calming volatility in the 

market, without causing harm; (3) the 

design of the MWCB mechanism with 

respect to reference value (SPX), trigger 

levels (7%/13%/20%), and halt times 

(15 minutes) is appropriate; (4) the 

change implemented in Amendment 10 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices 16517 

20See id. at 46. 

21See Securities Exchange Act Release No. 92428 

(July 16, 2021), 86 FR 38776 (July 22, 2021) (SR– 

NYSE–2021–40). 

22See Securities Exchange Act Release No. 

92785A (August 27, 2021), 86 FR 50202 (September 

7, 2021) (SR–NYSE–2021–40). 

23See Securities Exchange Act Release No. 93212 

(September 30, 2021), 86 FR 55066 (October 5, 

2021) (SR–NYSE–2021–40). 

24See Securities Exchange Act Release No. 93933 

(January 7, 2022), 87 FR 2189 (January 13, 2022) 

(SR–NYSE–2021–40). 

25 15 U.S.C. 78f(b). 

26 15 U.S.C. 78f(b)(5). 

27 15 U.S.C. 78s(b)(3)(A)(iii). 

28 17 CFR 240.19b–4(f)(6). 

29 15 U.S.C. 78s(b)(3)(A)(iii). 

30 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4 requires a self-regulatory organization to give the 

Commission written notice of its intent to file a 

proposed rule change under that subsection at least 

five business days prior to the date of filing, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

31 17 CFR 240.19b–4(f)(6). 

32 17 CFR 240.19b–4(f)(6)(iii). 

33For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

34 15 U.S.C. 78s(b)(2)(B). 

to the Plan to Address Extraordinary 

Market Volatility (the ‘‘LULD Plan’’) did 

not likely have any negative impact on 

MWCB functionality; and (5) no changes 

should be made to the mechanism to 

prevent the market from halting shortly 

after the opening of regular trading 

hours at 9:30 a.m. 

In light of the foregoing conclusions, 

the Working Group also made several 

recommendations, including that the 

Pilot Rules should be permanent 

without any changes.20

Proposal To Extend the Operation of the 

Pilot Rules Pending the Commission’s 

Consideration of the Exchange’s Filing 

To Make the Pilot Rules Permanent 

On July 16, 2021, the New York Stock 

Exchange (‘‘NYSE’’) proposed a rule 

change to make the Pilot Rules 

permanent, consistent with the Working 

Group’s recommendations.21 On August 

27, 2021, the Commission extended its 

time to consider the proposed rule 

change to October 20, 2021; 22 on 

September 30, 2021, the Commission 

initiated proceedings to determine 

whether to approve or disapprove of the 

filing; 23 and on January 7, 2022, the 

Commission again extended the review 

period for the NYSE filing to make the 

Pilot Rules permanent, designating 

March 19, 2022, as the date by which 

the Commission will either approve or 

disapprove of the filing.24

To allow time for the Commission to 

make its final decision on the NYSE 

MWCB filing, the Exchange proposes to 

extend the expiration date of the Pilot 

Rules to the end of business on April 18, 

2022. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with the 

requirements of Sections 6(b) 25 and 

6(b)(5) of the Act,26 in particular, in that 

it is designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general to protect investors and the 

public interest. The MWCB mechanism 

under Rule 11.280 is an important, 

automatic mechanism that is invoked to 

promote stability and investor 

confidence during periods of significant 

stress when securities markets 

experience extreme broad-based 

declines. Extending the MWCB pilot for 

an additional month would ensure the 

continued, uninterrupted operation of a 

consistent mechanism to halt trading 

across the U.S. equity markets while the 

Commission reviews NYSE’s proposed 

rule change to make the Pilot Rules 

permanent. 

The Exchange also believes that the 

proposed rule change promotes just and 

equitable principles of trade in that it 

promotes transparency and uniformity 

across markets concerning when and 

how to halt trading in all stocks as a 

result of extraordinary market volatility. 

Based on the foregoing, the Exchange 

believes the benefits to market 

participants from the MWCB under Rule 

11.280(a) through (d) and (f) should 

continue on a pilot basis because the 

MWCB will promote fair and orderly 

markets, and protect investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

IEX does not believe that the 

proposed rule change implicates any 

competitive issues because the proposal 

would ensure the continued, 

uninterrupted operation of a consistent 

mechanism to halt trading across the 

U.S. markets while the Commission 

reviews NYSE’s proposed rule change to 

make the Pilot Rules permanent. 

Further, IEX understands that the 

other SROs will file proposals to extend 

their rules regarding the MWCB pilot. 

Thus, the proposed rule change will 

help to ensure consistency across 

market centers without implicating any 

competitive issues. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 27 and Rule 

19b–4(f)(6) thereunder.28 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

of the Act 29 and Rule 19b–4(f)(6)(iii) 

thereunder.30

A proposed rule change filed under 

Rule 19b–4(f)(6) 31 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),32 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange asked that the 

Commission waive the 30 day operative 

delay so that the proposal may become 

operative immediately upon filing. 

Extending the Pilot Rules’ effectiveness 

to the close of business on April 18, 

2022 will extend the protections 

provided by the Pilot Rules, which 

would otherwise expire in less than 30 

days. Waiver of the operative delay 

would therefore permit uninterrupted 

continuation of the MWCB pilot while 

the Commission reviews the NYSE’s 

proposed rule change to make the Pilot 

Rules permanent. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change as operative upon 

filing.33

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) 34 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 


jspears on DSK121TN23PROD with NOTICES1
16518 Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices 

35 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. 93789 

(December 15, 2021), 86 FR 72293 (‘‘Notice’’). 

4See Securities Exchange Act Release No. 94145, 

87 FR 7521 (February 9, 2022) (extending the time 

period to March 21, 2022). 

5The term ‘‘Company’’ means the issuer of a 

security listed or applying to list on Nasdaq. See 

Nasdaq Rule 5005(a)(6). 

6For purposes of this filing, Nasdaq’s rules 

identify deficiencies for which an already listed 

Company may submit a plan of compliance (Nasdaq 

Rule 5815(c)(2)); and deficiencies for which the 

Nasdaq Rules provide a specified cure or 

compliance period (Nasdaq Rule 5815(c)(3)). While 

the Rule 5800 rule series also addresses denials of 

listing for not meeting listing standards, the rule 

proposal considered herein concerns Companies 

that are already listed and fail to meet the 

continued listing standards. 

7The term ‘‘Staff’’ refers to the employees of the 

Listing Qualifications Department. See Nasdaq Rule 

5805(g). The ‘‘Listing Qualifications Department’’ is 

the department of Nasdaq responsible for Company 

compliance with quantitative and qualitative listing 

standards and determining eligibility for initial and 

continued listing of a Company’s securities. See 

Nasdaq Rule 5805(f). 

8See Notice, supra note 3, at 72293. 

9See Rule 5810(c)(2)(E). 

10See Rule 5810(c)(3). 

11See Rule 5810(c)(1). 

12A ‘‘Staff Delisting Determination’’ or ‘‘Delisting 

Determination’’ is a written determination by the 

Listing Qualifications Department to delist a listed 

Company’s securities for failure to meet a continued 

listing standard. See Nasdaq Rule 5805(h). 

13The ‘‘Hearings Panel’’ is an independent panel 

made up of at least two persons who are not 

employees or otherwise affiliated with Nasdaq or its 

affiliates, and who have been authorized by the 

Nasdaq Board of Directors. See Nasdaq Rule 

5805(d). 

14Pursuant to Nasdaq Rule 5815(c)(1)(A), when 

the Hearings Panel review is of a deficiency related 

to continued listing standards, the Hearings Panel 

may, where it deems appropriate grant an exception 

to the continued listing standards for a period not 

to exceed 180 days from the date of the Staff 

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– 

IEX–2022–01 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–IEX–2022–01. 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–IEX–2022–01 and should 

be submitted on or before April 13, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06089 Filed 3–22–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94450; File No. SR– 

NASDAQ–2021–099] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Order 

Approving Proposed Rule Change To 

Amend Nasdaq Rule 5815(d)(4) 

Regarding the Use of a Hearings Panel 

Monitor Following a Compliance 

Determination by a Nasdaq Listings 

Qualification Hearings Panel 

March 17, 2022. 

I. Introduction 

On December 10, 2021, The Nasdaq 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘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 Nasdaq Rule 5815(d)(4) 

regarding the use of a Hearings Panel 

Monitor following a compliance 

determination by a Nasdaq Listings 

Qualification Hearings Panel. The 

proposed rule change was published for 

comment in the Federal Register on 

December 21, 2021.3 On February 3, 

2022, the Commission extended the 

time period within which to approve 

the proposed rule change, disapprove 

the proposed rule change, or institute 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change.4 The Commission received 

no comments on the proposed rule 

change. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Nasdaq Rule 5300, 5400, and 

5500 series set forth the initial listing 

requirements for a Company 5 seeking to 

list, as well as continued listing 

requirements that apply to a Company 

once listed on, the Nasdaq Global Select 

Market, Nasdaq Global Market and 

Nasdaq Capital Market, respectively. 

The Nasdaq Rule 5800 series contains 

the rules and procedures applicable to 

a Company that does not meet the 

listing standards outlined in the Nasdaq 

Rule 5000 series and thus is ‘‘deficient’’ 

with respect to a listing standard.6 In 

this circumstance, staff from the Listings 

Qualifications Department 7 (‘‘Staff’’) 

will issue a notification informing the 

Company of the deficiency. According 

to Nasdaq, where allowed by Nasdaq’s 

rules, Staff’s notification may provide 

for a cure or compliance period or allow 

the company to submit a plan of 

compliance for Staff to review.8

Companies that do not regain 

compliance within any time frame 

permitted by Staff under a plan of 

compliance,9 that do not regain 

compliance within the specified cure or 

compliance period,10 or that has a 

deficiency type that unless appealed 

subjects the Company to immediate 

suspension and delisting 11 will be 

issued a Staff Delisting Determination 12

and may request that a Hearings Panel 13

(‘‘Hearings Panel’’) review such 

determination. If it deems appropriate, 

the Hearings Panel may grant an 

exception (‘‘exception’’) to the 

continued listing standard with respect 

to the deficiency.14 However, where a 


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