Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 17347 

14 15 U.S.C. 78f(b)(8). 

15See Securities Exchange Act Release No. 93037 

(Sept. 16, 2021), 86 FR 52719 (Sept. 22, 2021) (SR– 

NYSE–2021–44) (Notice); Securities Exchange Act 

Release No. 93809 (Dec. 17, 2021), 86 FR 73060 

(Dec. 23, 2021) (Order Instituting Proceedings). 

16 17 CFR 240.19b–4. 

17Rule 700(c)(2) of the Commission’s Rules of 

Practice provides that ‘‘[t]he Commission, in its sole 

discretion, may determine whether any issues 

relevant to approval or disapproval would be 

facilitated by the opportunity for an oral 

presentation of views.’’ 17 CFR 201.700(c)(2). 

18 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

of an exchange from being designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

Further, Section 6(b)(8) of the Act 

requires that the rules of an exchange 

not impose any burden on competition 

that is not necessary or appropriate 

under the Act.14

The Exchange’s proposal would 

change how cancellation of MOC, LOC, 

and Closing IO Orders would be 

handled under NYSE Rule 7.35(B)(f)(2) 

with respect to the NYSE Closing 

Auction. The Commission notes that the 

Exchange has separately proposed a 

different set of changes to its Closing 

Auction process and that the other 

proposal is currently in proceedings 

before the Commission.15 The 

Commission believes that it is 

appropriate to institute proceedings to 

allow for additional analysis and input 

concerning the instant proposed rule 

change’s consistency with requirements 

of the Act and to evaluate this proposed 

rule change in light of other pending 

proposed changes to the Closing 

Auction. 

IV. Procedure: Request for Written 

Comments 

The Commission requests that 

interested persons provide written 

submissions of their views, data, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

proposal. In particular, the Commission 

invites the written views of interested 

persons concerning whether the 

proposal is consistent with Section 

6(b)(5) or any other provision of the Act, 

or the rules and regulation thereunder. 

Although there do not appear to be any 

issues relevant to approval or 

disapproval that would be facilitated by 

an oral presentation of views, data, and 

arguments, the Commission will 

consider, pursuant to Rule 19b–4 under 

the Act,16 any request for an 

opportunity to make an oral 

presentation.17

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposal should be approved or 

disapproved by April 18, 2022. Any 

person who wishes to file a rebuttal to 

any other person’s submission must file 

that rebuttal by May 2, 2022. The 

Commission asks that commenters 

address the sufficiency of the 

Exchange’s statements in support of the 

proposal which are set forth in the 

Notice, in addition to any other 

comments they may wish to submit 

about the proposed change. 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– 

NYSE–2021–74 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–NYSE–2021–74. 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 proposal that are 

filed with the Commission, and all 

written communications relating to the 

proposal 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 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–NYSE–2021–74 and should 

be submitted on or before April 18, 

2022. Rebuttal comments should be 

submitted by May 2, 2022. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06382 Filed 3–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94489; File No. SR– 

EMERALD–2022–11] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Make a Formatting 

Change to Exchange Rule 531, 

Reports, Market Data Products and 

Services 

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 11, 

2022, MIAX Emerald, LLC (‘‘MIAX 

Emerald’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to make an 

administrative, immaterial change to 

update the subparagraph lettering in 

Exchange Rule 531. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/emerald at MIAX Emerald’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 


jspears on DSK121TN23PROD with NOTICES1
17348 Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 

3See Securities Exchange Act Release No. 93698 

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

2021) (SR–EMERALD–2021–38). 

4See Securities Exchange Act Release No. 94136 

(February 2, 2022), 87 FR 7223 (February 8, 2022) 

(SR–EMERALD–2022–02). 

5See Securities Exchange Act Release No. 94335 

(March 1, 2022), 87 FR 12756 (March 7, 2022). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

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 proposes to make an 

administrative, immaterial change to 

update the subparagraph lettering in 

Exchange Rule 531 by changing 

subparagraph (c), High Precision 

Network Time Signal Service, to 

subparagraph (d). On November 19, 

2021, the Exchange filed a proposed 

rule change to adopt Exchange Rule 

531(c), High Precision Network Time 

Signal Service (‘‘HPNTSS’’), and that 

proposed rule change was published for 

comment in the Federal Register on 

December 7, 2021 (the ‘‘HPNTSS 

Proposal’’).3 On January 27, 2022, the 

Exchange filed a proposed rule change 

for immediate effectiveness to amend 

Exchange Rule 531(b) to provide for the 

new ‘‘Liquidity Taker Event Report— 

Complex Orders’’ and, within that 

filing, proposed to move the rule text for 

the then-current subparagraph (b), 

Market Data Products, to become new 

subparagraph (c) under Exchange Rule 

531.4 Thereafter, the Commission 

approved the HPNTSS Proposal on 

March 1, 2022,5 which resulted in 

Exchange Rule 531 containing two 

separate references to paragraph (c), one 

for HPNTSS and a second for Market 

Data Products. The Exchange now 

proposes to update the subparagraph 

lettering for HPNTSS to be under 

paragraph (d) to Exchange Rule 531. The 

Exchange does not propose to make any 

substantive changes to the text of 

Exchange Rule 531. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.6 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 7 requirements that the rules of 

an exchange be designed to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system because it 

proposes an administrative, immaterial 

change to update the subparagraph 

lettering in Exchange Rule 531 by 

changing subparagraph (c), High 

Precision Network Time Signal Service, 

to now be subparagraph (d). This change 

is simply intended to remove two 

separate references to subparagraph (c) 

within Exchange Rule 531, one for 

HPNTSS and a second for Market Data 

Products. The Exchange does not 

propose any other changes to Exchange 

Rule 531. The proposed rule change 

would prevent any potential investor 

confusion by providing clarity within 

the rule text and make the Exchange’s 

rules easier to understand, thereby 

removing impediments to and 

perfecting the mechanism of a free and 

open market and a national market 

system. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would result 

in any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

The proposed rule change would not 

have any impact on inter-market 

competition or intra-market competition 

because it simply updates subparagraph 

lettering in Exchange Rule 531 without 

making any substantive changes. The 

proposed rule change is ministerial in 

nature and does not propose any new 

products or services, and thus, would 

not have any impact on competition. 

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 

Because the foregoing 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 for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

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

of the Act 8 and Rule 19b–4(f)(6) 9

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. 

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– 

EMERALD–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–EMERALD–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 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices 17349 

10 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 7.31E(h). 

5NYSE American Rule 1.1E(dd) defines PBB as 

the highest Protected Bid and PBO as the lowest 

Protected Offer. Rule 1.1E(dd) also provides that 

‘‘PBBO’’ means the Best Protected Bid and the Best 

Protected Offer. 

6The Exchange eliminated the Delay Mechanism, 

which added a delay of 350 microseconds of 

latency to specified order processing, in 2019. See 

Securities Exchange Act Release No. 87550 

(November 15, 2019), 84 FR 64359 (November 21, 

2019) (SR–NYSEAMER–2019–48) (Notice of Filing 

and Immediate Effectiveness of Proposed Rule 

Change to Amend Exchange Rules 1.1E and 7.29E 

to Eliminate the Delay Mechanism and Amend 

Exchange Rule 7.31E and Related Exchange Rules 

to Re-Introduce Previously-Approved Order Types 

and Modifiers). 

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–2022–11 and 

should be submitted on or before April 

18, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06387 Filed 3–25–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94487; File No. SR– 

NYSEAMER–2022–15] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing of 

Proposed Rule Change To Amend Rule 

7.31E(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 American LLC (‘‘NYSE 

American’’ 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 7.31E(h)(3). 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, 

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 7.31E(h)(3) to modify certain 

factors relevant to the quote instability 

calculation for Discretionary Pegged 

Orders. Specifically, the Exchange 

proposes to amend Rule 

7.31E(h)(3)(D)(i)(D)(1)(a), which sets 

forth the quote stability coefficients. 

Under Rule 7.31E(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 7.31E(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 Exchange 

Book, except during periods of quote 

instability as defined in Rule 

7.31E(h)(3)(D). 

Rule 7.31E(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 7.31E(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 

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

7.31E(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 

7.31E(h)(3) was adopted. The proposed 

changes are intended to update the 

quote stability coefficients to be based 

on more current market data and 

activity on the Exchange, including to 

reflect the Exchange’s elimination of a 

delay mechanism that previously added 

latency to certain order processing (the 

‘‘Delay Mechanism’’).6

The Exchange reviewed NYSE 

American market data from randomly 

selected days in the fourth quarter of 

2021 to analyze the effectiveness of the 

quote stability coefficients in predicting 

changes to the PBBO. Specifically, the 

Exchange reviewed PBBO data, on a 

nanosecond level, for certain intervals 

throughout each randomly selected day 

to track changes to quotes on NYSE 

American and away markets. The 

Exchange used this data to generate and 

test the proposed quote stability 

coefficients, and based on its analysis, 

believes that modifying the quote 

stability coefficients would enable the 

Exchange to evaluate the quality of the 

PBBO more effectively. 

The Exchange proposes to modify the 

quote stability coefficients set forth in 

Rule 7.31E(h)(3)(D)(i)(D)(1)(a)(i) through 

(v) as follows: 

Quote stability 

coefficient 

Current 

value 

Proposed 

value 

C0 ..................... ¥2.39515 ¥2.174901 


jspears on DSK121TN23PROD with NOTICES1