16528 Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices 

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

2 17 CFR 240.19b–4. 

3 See Phlx Options 3, Section 20(l). 

4See Phlx Options 3, Section 20(l) for analogous 

language. 

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

6 15 U.S.C. 78f(b)(5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94446; File No. SR–BX– 

2022–004] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Harmonize Various 

Processes Under Options 3, Section 20 

Across the Affiliated Nasdaq Options 

Exchanges 

March 17, 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, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to harmonize 

its processes and procedures under 

Options 3, Section 20 with those of its 

affiliated options exchange. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/bx/rules, 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 

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 proposes to harmonize 

its existing processes for the review of 

decisions on appeal under Options 3, 

Section 20 with those of its affiliate 

Nasdaq Phlx LLC (‘‘Phlx’’). 

Today, Options 3, Section 20(k) 

governs the appeal process for 

determinations by Exchange staff made 

under this Rule, including obvious error 

determinations. Specifically, a party to 

a transaction affected by a decision 

made under this section may appeal that 

decision to the Exchange Review 

Council. An appeal must be made in 

writing, and must be received by the 

Exchange within thirty (30) minutes 

after the person making the appeal is 

given the notification of the 

determination being appealed. 

The Exchange proposes generally to 

maintain its current appeal process with 

certain additions to harmonize its 

process with that of its affiliate, Phlx. 

First, while Phlx similarly requires the 

parties to submit a request for review 

within thirty (30) minutes of being 

notified of the determination being 

appealed, Phlx also provides parties 

with additional time to submit their 

request if the notification occurs later in 

the trading day. In particular, if the 

notification is made after 3:30 p.m. 

Eastern Time, either party has until 9:30 

a.m. Eastern Time on the next trading 

day to submit a request for review.3

Similar to Phlx, the Exchange believes 

that this flexibility will be helpful for 

Participants in submitting their appeal 

requests in a timely manner, 

particularly where notification of the 

Official’s decision was received later in 

the trading day, and therefore proposes 

to adopt this provision in Options 3, 

Section 20(k). 

Second, the Exchange proposes to add 

a provision for when the Exchange 

Review Council panel must render a 

decision on requests for appeal to 

harmonize to Phlx’s process. 

Specifically, the Exchange proposes in 

Options 3, Section 20(k) that the 

Exchange Review Council panel shall 

review the facts and render a decision 

on the day of the transaction, or the next 

trade day in the case where a request is 

properly made after 3:30 p.m. on the 

day of the transaction or where the 

request is properly made the next trade 

day.4

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,6

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 and 

because it is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that its 

proposal to amend the current appeal 

process to harmonize with Phlx’s appeal 

process is consistent with the Act 

because it will continue to afford 

Participants with due process in 

connection with decisions made by 

Officials under Options 3, Section 20 

that the Participant may feel warrants 

review. As discussed above, the 

proposal would allow either party until 

9:30 a.m. the next trading to submit a 

request for review if notification is made 

after 3:30 p.m., which the Exchange 

believes will be helpful for Participants 

in submitting their appeal requests in a 

timely manner. Furthermore, the 

proposal provides the Exchange Review 

Council panel additional time and 

flexibility to render decisions on 

requests for appeal in cases where a 

request is properly made after 3:30 p.m. 

on the day of the transaction or where 

the request is properly made the next 

trade day, and is designed to reduce 

administrative burden on the Exchange. 

Ultimately, the proposed changes to 

the appeal process are intended to align 

certain time frames with those of its 

affiliate in order to provide more 

consistent rules and procedures across 

the affiliated options exchanges owned 

by Nasdaq, Inc. Consistent rules and 

procedures, in turn, would simplify and 

streamline the regulatory requirements 

and increase the understanding of the 

Exchange’s operations for Participants 

of the Exchange that are also members 

on the Exchange’s affiliated options 

exchanges. Greater harmonization 

across the affiliated options exchanges 

will result in greater uniformity, rules 

that are easier to follow and understand, 

and more efficient regulatory 

compliance, thereby contributing to the 

protection of investors and the public 

interest. As such, the proposed rule 

change would foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities and 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 56 / Wednesday, March 23, 2022 / Notices 16529 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 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. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

For these reasons, the Exchange 

believes that the proposal is consistent 

with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. As it relates 

to the proposed changes to the appeal 

process under Options 3, Section 20(k), 

the changes are designed to provide 

greater harmonization among similar 

rules and processes across the 

Exchange’s affiliated options exchanges, 

resulting in more efficient regulatory 

compliance for common members. For 

these reasons, the Exchange believes 

that the proposed rule change reflects 

this competitive environment and does 

not impose any undue burden on 

intermarket competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or 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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.8

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BX–2022–004 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–BX–2022–004. 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–BX–2022–004 and 

should be submitted on or before April 

13, 2022. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.9

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–06101 Filed 3–22–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94453; File No. SR–Phlx– 

2022–10] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Open Outcry 

Options Transaction Charges 

March 17, 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 10, 

2022, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Phlx’s Pricing Schedule at Options 7, 

Section 4, ‘‘Multiply Listed Options 

Fees (Includes options overlying 

equities, ETFs, ETNs and indexes which 

are Multiply Listed) (Excludes SPY).’’ 

The Exchange originally filed the 

proposed pricing changes on March 1, 

2022 (SR–PHLX–2022–09). On March 

10, 2022, the Exchange withdrew that 

filing and submitted this filing. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, 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 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 


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