Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 20471 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Fee Schedule, ELECTRONIC COMPLEX, 

ORDER EXECUTIONS, TRANSACTION FEE—PER 

CONTRACT. 

5See, e.g., NYSE American Options Fee 

Schedule, Section I.A. (Rates for Options 

transactions), footnote 5 (assessing $0.12 per 

contract surcharge to any Electronic Non-Customer 

Complex Order that executes against a Customer 

Complex Order); MIAX Options Fee Schedule, 

Sections 1)a)i)–ii) (assessing a $0.12 per contract 

surcharge for trading against a Priority Customer 

Complex Order for Penny and Non-Penny classes). 

6SPY is the symbol for the SPDR S&P 500 ETF 

Trust. 

SUPPLEMENTARY INFORMATION: The 

Consumer Expenditure (CE) Surveys 

collect data on consumer expenditures, 

demographic information, and related 

data needed by the Consumer Price 

Index (CPI) and other public and private 

data users. The continuing surveys 

provide a constant measurement of 

changes in consumer expenditure 

patterns for economic analysis and to 

obtain data for future CPI revisions. The 

CE Surveys have been ongoing since 

1979. The data from the CE Surveys are 

used (1) for CPI revisions, (2) to provide 

a continuous flow of data on income 

and expenditure patterns for use in 

economic analysis and policy 

formulation, and (3) to provide a 

flexible consumer survey vehicle that is 

available for use by other Federal 

Government agencies. For additional 

substantive information about this ICR, 

see the related notice published in the 

Federal Register on January 25, 2022 

(87 FR 3841). 

This information collection is subject 

to the PRA. A Federal agency generally 

cannot conduct or sponsor a collection 

of information, and the public is 

generally not required to respond to an 

information collection, unless the OMB 

approves it and displays a currently 

valid OMB Control Number. In addition, 

notwithstanding any other provisions of 

law, no person shall generally be subject 

to penalty for failing to comply with a 

collection of information that does not 

display a valid OMB Control Number. 

See 5 CFR 1320.5(a) and 1320.6. 

DOL seeks PRA authorization for this 

information collection for three (3) 

years. OMB authorization for an ICR 

cannot be for more than three (3) years 

without renewal. The DOL notes that 

information collection requirements 

submitted to the OMB for existing ICRs 

receive a month-to-month extension 

while they undergo review. 

Agency: DOL–BLS. 

Title of Collection: Consumer 

Expenditure Surveys: Quarterly 

Interview and Diary. 

OMB Control Number: 1220–0050. 

Affected Public: Individuals or 

Households. 

Total Estimated Number of 

Respondents: 11,250. 

Total Estimated Number of 

Responses: 48,650. 

Total Estimated Annual Time Burden: 

39,733 hours. 

Total Estimated Annual Other Costs 

Burden: $0. 

(Authority: 44 U.S.C. 3507(a)(1)(D)) 

Dated: April 1, 2022. 

Mara Blumenthal, 

Senior PRA Analyst. 

[FR Doc. 2022–07365 Filed 4–6–22; 8:45 am] 

BILLING CODE 4510–24–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94578; No. SR–NYSEArca– 

2022–20] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify the NYSE Arca 

Options Fee Schedule 

April 1, 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 

31, 2022, NYSE Arca, Inc. (‘‘NYSE 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 modify the 

NYSE Arca Options Fee Schedule (‘‘Fee 

Schedule’’) regarding fees and credits 

relating to Complex Orders. The 

Exchange proposes to implement the fee 

change effective April 1, 2022. 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 purpose of this filing is to amend 

the Fee Schedule to modify fees and 

credits for electronic Complex Orders. 

Specifically, the Exchange proposes to 

(1) establish a surcharge applicable to 

electronic Non-Customer Complex 

Orders that execute against a Customer 

Complex Order, as well as discounts 

available on such surcharge, and (2) 

introduce credits on electronic 

executions of Customer Complex 

interest against Non-Customer Complex 

interest. The Exchange proposes to 

implement the rule change on April 1, 

2022. 

Non-Customer Complex Surcharge 

Currently, the Exchange charges a per 

contract transaction fee based on 

whether the trade participant is a 

Customer or Non-Customer, and 

whether the trade is in a Penny Issue or 

a Non-Penny Issue.4

The Exchange now proposes to 

establish a surcharge of $0.12 per 

contract that would be applied to an 

electronic Non-Customer Complex 

Order that executes against a Customer 

Complex Order (the ‘‘Non-Customer 

Complex Surcharge’’). The Exchange 

notes that the proposed Non-Customer 

Complex Surcharge is consistent with 

similar surcharges imposed by other 

option exchanges.5

The Exchange also proposes to offer 

two alternative discounts on the NonCustomer Complex Surcharge. OTP 

Holders and OTP Firms (collectively, 

‘‘OTP Holders’’) that achieve ADV from 

Non-Customer posted interest in all 

issues other than SPY 6 equal to at least 

0.10% of TCADV from Non-Customer 

posting would earn a $0.05 per contract 

discount on the Non-Customer Complex 

Surcharge. OTP Holders may earn a 

$0.07 per contract discount applied to 

the Non-Customer Complex Surcharge 

by achieving either at least 1.50% of 


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20472 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 

7See note 4, supra. 

8See, e.g., Nasdaq ISE, Options 7 Pricing 

Schedule, Section 4. Complex Order Fees and 

Rebates (providing for tiered rebates on Priority 

Customer Complex orders based on qualifying 

Complex Order volume); Cboe EDGX Options 

Exchange Fee Schedule (providing for tiered rebates 

on Customer Complex orders based on qualifying 

Complex Order volume). 

9An ‘‘Appointed MM’’ is an NYSE Arca Market 

Maker that has been designated by an Order Flow 

Provider (‘‘OFP’’) (as defined in NYSE Arca Rule 

6.1A–O(a)(21)). An ‘‘Appointed OFP’’ is an OFP 

that has been designated by an NYSE Arca Market 

Maker. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4) and (5). 12See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(S7–10–04) (‘‘Reg NMS Adopting Release’’). 13The OCC publishes options and futures volume 

in a variety of formats, including daily and monthly 

volume by exchange, available here: https://

www.theocc.com/Market-Data/Market-DataReports/Volume-and-Open-Interest/MonthlyWeekly-Volume-Statistics. 

14Based on a compilation of OCC data for 

monthly volume of equity-based options and 

monthly volume of ETF-based options, see id., the 

Exchange’s market share in equity-based options 

increased from 10.74% for the month of February 

2021 to 13.99% for the month of February 2022. 

TCADV from Customer posted interest 

in all issues or at least 0.75% of TCADV 

in Complex executions from all account 

types. OTP Holders may earn the greater 

of the discounts for which they qualify. 

Customer Complex Credit Tiers 

The Exchange also proposes to 

introduce new credits applicable to 

electronic executions of Customer 

Complex interest against Non-Customer 

Complex interest (the ‘‘Customer 

Complex Credit Tiers’’). OTP Holders 

would continue to receive a $0.39 credit 

for such executions in Penny issues and 

a $0.75 credit for such executions in 

non-Penny issues (as already set forth in 

the Fee Schedule) 7 and may qualify for 

enhanced credits across four tiers if they 

achieve volume levels based on 

percentages of TCADV from Complex 

executions from all account types, as 

outlined in the table below. The 

proposed credits would not apply to 

Customer Complex Orders executed 

against individual orders in the 

Consolidated Book, but volume from 

Complex Orders that execute against 

individual orders would count towards 

the qualification basis for the Customer 

Complex Credit Tiers. The Exchange 

notes that the proposed credits are 

similar in structure to incentives 

relating to Customer Complex Orders 

offered by other options exchanges.8

Credit applied to electronic executions of customer complex interest against non-customer 

complex interest 

Tier Qualification basis (average electronic executions per day) Penny Non-penny 

Base ............ ............................................................................ ............................................................................ ($0.39) ($0.75) 

Tier 1 ........... At least 0.40% of TCADV from Complex executions, all account types. (0.41) (0.77) 

Tier 2 ........... At least 0.60% of TCADV from Complex executions, all account types, or At least 2.75% of TCADV from Customer posted interest in all issues and 2.75% of 

TCADV from Professional Customer and 

Non-Customer taking volume.

(0.44) (0.80) 

Tier 3 ........... At least 0.75% of TCADV from Complex executions, all account types. (0.49) (0.85) 

Tier 4 ........... At least 1.00% of TCADV from Complex executions, all account types. (0.50) (0.90) 

The Exchange also proposes an 

alternative qualification for Tier 2. An 

OTP holder that meets at least 2.75% of 

TCADV from Customer posting volume 

in all issues and at least 2.75% of 

TCADV from Professional Customer and 

Non-Customer taking volume would 

also qualify for the credits offered in 

Tier 2. 

Finally, the Exchange proposes that 

existing Endnotes 8 and 15 in the Fee 

Schedule would apply to the Customer 

Complex Credit Tiers. Endnote 8 

provides that the calculations for 

qualifications for monthly posting 

credits or discounts only include 

electronic executions and the Exchange 

will include the activity of either (i) 

affiliates or (ii) an Appointed OFP or 

Appointed MM, per Endnote 15. 

Endnote 15 in turn provides for the 

inclusion of transaction volume from an 

OTP Holder’s or OTP Firm’s affiliates or 

its Appointed OFP or Appointed MM.9

The Exchange believes that the 

proposed Non-Customer Complex 

Surcharge, the proposed discounts on 

the Non-Customer Complex Surcharge, 

and the proposed Customer Complex 

Credit Tiers would, on balance, incent 

OTP Holders to direct Complex Orders 

(and, in particular, Customer Complex 

Orders), to the Exchange, thereby 

creating more trading opportunities for 

all market participants. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,10 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,11 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Proposed Rule Change Is 

Reasonable 

The Exchange operates in a highly 

competitive market. The Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. 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.’’ 12

There are currently 16 registered 

options exchanges competing for order 

flow. Based on publicly-available 

information, and excluding index-based 

options, no single exchange has more 

than 16% of the market share of 

executed volume of multiply-listed 

equity and ETF options trades.13

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity 

and ETF options order flow. More 

specifically, in February 2022, the 

Exchange had less than 14% market 

share of executed volume of multiplylisted equity and ETF options trades.14

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 20473 

15See note 5, supra. 16See note 8, supra. 

can shift order flow or discontinue or 

reduce use of certain categories of 

products, in response to fee changes. 

Accordingly, competitive forces 

constrain options exchange transaction 

fees. 

The Exchange believes that the 

proposed changes are reasonably 

designed to incent OTP Holders to 

increase the amount of Customer 

interest sent to the Exchange, especially 

posted interest and Complex Order 

interest. An increase in Customer 

volume would create more trading 

opportunities for all market participants 

and would in turn attract Non-Customer 

activity to the Exchange. A resulting 

increase in Non-Customer activity may 

facilitate tighter spreads, which may 

lead to an additional increase of order 

flow from other market participants, 

further contributing to a deeper, more 

liquid market to the benefit of all market 

participants. 

The proposed Non-Customer Complex 

Surcharge is reasonable because it is 

designed to offset costs associated with 

the proposed credits on Customer 

Complex executions offered in the 

Customer Complex Credit Tiers, which 

are intended to attract more Customer 

Complex Orders to the Exchange. To the 

extent this purpose is achieved, the 

Exchange believes that the NonCustomer Complex Surcharge would not 

disincentivize Non-Customer Complex 

activity because increased Customer 

Complex order flow would benefit NonCustomers as well by providing more 

opportunities to trade. The proposed 

discounts on the Non-Customer 

Complex Surcharge are also reasonably 

designed to incent OTP Holders (and 

their affiliates) to transact more options 

volume on the Exchange and to provide 

OTP Holders with an opportunity to 

decrease the surcharge on electronic 

Non-Customer Complex Orders that 

execute against a Customer Complex 

Order. The resulting increase in volume 

and liquidity would benefit all market 

participants by providing more trading 

opportunities and tighter spreads and 

may lead to a corresponding increase in 

order flow from other market 

participants. The Exchange also believes 

that the Non-Customer Complex 

Surcharge, as proposed, is reasonable 

because it is consistent with similar 

surcharges imposed by other options 

exchanges.15

The proposed Customer Complex 

Credit Tiers are reasonably designed to 

encourage increased Complex Order 

executions and are similar in structure 

to incentive programs relating to 

Customer Complex executions offered 

by competing options exchanges.16 The 

Exchange also believes that the 

proposed credits, which are intended to 

attract more Customer Complex Orders 

to the Exchange, are reasonable because 

increased Customer volume would in 

turn provide more opportunities to trade 

for Non-Customers. 

To the extent the proposed rule 

change continues to attract greater 

volume and liquidity by encouraging 

OTP Holders (and their affiliates) to 

increase their options volume on the 

Exchange in an effort to achieve the 

proposed discounts offered on the NonCustomer Complex Surcharge and/or 

the proposed Customer Complex Credit 

Tiers, the Exchange believes the 

proposed changes would improve the 

Exchange’s overall competitiveness and 

strengthen its market quality for all 

market participants. In the backdrop of 

the competitive environment in which 

the Exchange operates, the proposed 

rule change is a reasonable attempt by 

the Exchange to increase the depth of its 

market and improve its market share 

relative to its competitors. 

The Proposed Rule Change Is an 

Equitable Allocation of Credits and Fees 

The Exchange believes the proposed 

rule change is an equitable allocation of 

its fees and credits because it is based 

on the amount and type of business 

transacted on the Exchange, and OTP 

Holders can opt to try to earn the NonCustomer Complex Surcharge discounts 

or achieve the Customer Complex Credit 

Tiers or not. The Exchange also believes 

that the proposed Non-Customer 

Complex Surcharge is equitable because 

it is designed to balance costs associated 

with encouraging Customer Complex 

Order flow to the Exchange, and an 

increase in such orders would in turn 

enhance trading opportunities for NonCustomers. The Exchange further 

believes that the proposed changes are 

equitably designed to provide credits to 

OTP Holders that transact more options 

volume on the Exchange, and, with 

respect to the Non-Customer Complex 

Surcharge, would mitigate the impact of 

the proposed fee. 

Moreover, the proposal is designed to 

incent OTP Holders to aggregate all 

Customer posting interest at the 

Exchange as a primary execution venue 

and to attract more Complex Order 

executions on the Exchange. To the 

extent that the proposed change attracts 

more Complex Order interest to the 

Exchange, this increased order flow 

would continue to make the Exchange a 

more competitive venue for, among 

other things, order execution. Thus, the 

Exchange believes the proposed rule 

change would improve market quality 

for all market participants on the 

Exchange and, as a consequence, attract 

more order flow to the Exchange thereby 

improving market-wide quality and 

price discovery. 

The Proposed Rule Change Is Not 

Unfairly Discriminatory 

The Exchange believes it is not 

unfairly discriminatory to impose a 

surcharge on Non-Customer Complex 

executions against Customer Complex 

interest because the proposed 

modification, along with the proposed 

discounts, would apply to all NonCustomers equally, and as discussed 

above, the Exchange believes it is not 

unfairly discriminatory to incent 

Customer order flow, which would 

enhance liquidity on the Exchange to 

the benefit of all market participants. 

The Exchange also believes that the 

proposed Customer Complex Credit 

Tiers are not unfairly discriminatory 

because they would be available to all 

similarly-situated market participants 

on an equal and non-discriminatory 

basis. 

The proposal is based on the amount 

and type of business transacted on the 

Exchange, and OTP Holders are not 

obligated to try to achieve the enhanced 

qualifications. Rather, the proposal is 

designed to encourage OTP Holders to 

utilize the Exchange as a primary 

trading venue for Customer Complex 

interest (if they have not done so 

previously). To the extent that the 

proposed change attracts more Complex 

interest from all account types to the 

Exchange, and, in particular, more 

Customer Complex interest, this 

increased order flow would continue to 

make the Exchange a more competitive 

venue for, among other things, order 

execution. Thus, the Exchange believes 

the proposed rule change would 

improve market quality for all market 

participants on the Exchange and, as a 

consequence, attract more order flow to 

the Exchange thereby improving marketwide quality and price discovery. The 

resulting increased volume and 

liquidity would provide more trading 

opportunities and tighter spreads to all 

market participants and thus would 

promote just and equitable principles of 

trade, 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. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 


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20474 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 

17See Reg NMS Adopting Release, supra note 12, 

at 37499. 

18See note 13, supra. 

19Based on a compilation of OCC data for 

monthly volume of equity-based options and 

monthly volume of ETF-based options, see id., the 

Exchange’s market share in equity-based options 

increased from 10.74% for the month of February 

2021 to 13.99% for the month of February 2022. 

20See notes 5 & 8, supra. 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f)(2). 23 15 U.S.C. 78s(b)(2)(B). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act, the Exchange does not believe 

that the proposed rule change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Instead, as discussed above, the 

Exchange believes that the proposed 

changes would encourage the 

submission of additional liquidity to a 

public exchange, thereby promoting 

market depth, price discovery and 

transparency and enhancing order 

execution opportunities for all market 

participants. As a result, the Exchange 

believes that the proposed change 

furthers the Commission’s goal in 

adopting Regulation NMS of fostering 

integrated competition among orders, 

which promotes ‘‘more efficient pricing 

of individual stocks for all types of 

orders, large and small.’’ 17

Intramarket Competition. The 

proposed change is designed to attract 

additional order flow (particularly 

Complex interest) to the Exchange. The 

Exchange believes that the proposed 

surcharge on Non-Customer Complex 

executions against Customer interest, 

the proposed discounts to the NonCustomer Complex Surcharge, and the 

proposed Customer Complex Credit 

Tiers would, on balance, incent OTP 

Holders to direct their Complex Orders 

to the Exchange. Greater liquidity 

benefits all market participants on the 

Exchange and increased Complex order 

flow would increase opportunities for 

execution of other trading interest. The 

proposed modifications would apply 

and be available to all similarly-situated 

market participants that execute 

Complex interest, and, accordingly, the 

proposed changes would not impose a 

disparate burden on competition among 

market participants on the Exchange. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily favor one of the 

16 competing option exchanges if they 

deem fee levels at a particular venue to 

be excessive. In such an environment, 

the Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and to attract order flow to 

the Exchange. Based on publiclyavailable information, and excluding 

index-based options, no single exchange 

has more than 16% of the market share 

of executed volume of multiply-listed 

equity and ETF options trades.18

Therefore, currently no exchange 

possesses significant pricing power in 

the execution of multiply-listed equity & 

ETF options order flow. More 

specifically, in February 2022, the 

Exchange had less than 14% market 

share of executed volume of multiplylisted equity & ETF options trades.19

The Exchange believes that the 

proposed rule change reflects this 

competitive environment because it 

modifies the Exchange’s fees in a 

manner designed to continue to incent 

OTP Holders to direct trading interest 

(particularly Complex interest and 

Customer posted interest) to the 

Exchange, to provide liquidity and to 

attract order flow. To the extent that this 

purpose is achieved, all the Exchange’s 

market participants should benefit from 

the improved market quality and 

increased opportunities for price 

improvement. 

The Exchange believes that the 

proposed change could promote 

competition between the Exchange and 

other execution venues, including those 

that currently apply a similar surcharge 

or offer similarly structured Customer 

Complex incentives,20 by encouraging 

additional orders to be sent to the 

Exchange for execution. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 21 of the Act and 

subparagraph (f)(2) of Rule 19b–4 22

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

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) 23 of the Act 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEArca–2022–20 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–NYSEArca–2022–20. 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–NYSEArca–2022–20, and 


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Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 20475 

24 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78a. 

2 17 CFR 240.19b–4. 

3The term ‘‘Professional’’ applies to transactions 

for the accounts of Professionals, as defined in 

Options 1, Section 1(b)(45) means any person or 

entity that (i) is not a broker or dealer in securities, 

and (ii) places more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial account(s). See Phlx’s Pricing 

Schedule at Options 7, Section 1(c). 

4The term ‘‘floor transaction’’ is a transaction that 

is effected in open outcry on the Exchange’s 

Trading Floor. See Phlx’s Pricing Schedule at 

Options 7, Section 1(c). 

5Floor transaction fees apply to any ‘‘as of’’ or 

‘‘reversal’’ adjustments for manually processed 

trades originally submitted electronically or 

through FBMS. See Phlx’s Pricing Schedule at 

Options 7, Section 4, footnote 8. 

6The term ‘‘Floor Lead Market Maker’’ is a 

member who is registered as an options Lead 

Market Maker pursuant to Options 2, Section 12(a) 

and has a physical presence on the Exchange’s 

trading floor. See Options 8, Section 2(a)(3). 

7A Floor Market Maker is a Market Maker who 

is neither an SQT or an RSQT. A Floor Market 

Maker may provide a quote in open outcry. See 

Options 8, Section 2(a)(4). 

The term ‘‘Streaming Quote Trader’’ or ‘‘SQT’’ is 

defined in Options 1, Section 1(b)(54) as a Market 

Maker who has received permission from the 

Exchange to generate and submit option quotations 

electronically in options to which such SQT is 

assigned. See Phlx’s Pricing Schedule at Options 7, 

Section 1(c). The term ‘‘Remote Streaming Quote 

Trader’’ or ‘‘RSQT’’ is defined in Options 1, Section 

1(b)(49) as a Market Maker that is a member 

affiliated with an RSQTO with no physical trading 

floor presence who has received permission from 

the Exchange to generate and submit option 

quotations electronically in options to which such 

RSQT has been assigned. A Remote Streaming 

Quote Trader Organization or ‘‘RSQTO,’’ which 

may also be referred to as a Remote Market Making 

Organization (‘‘RMO’’), is a member organization in 

good standing that satisfies the RSQTO readiness 

requirements in Options 2, Section 1(a). See Phlx’s 

Pricing Schedule at Options 7, Section 1(c). 

8The term ‘‘Broker-Dealer’’ applies to any 

transaction which is not subject to any of the other 

transaction fees applicable within a particular 

category. See Phlx’s Pricing Schedule at Options 7, 

Section 1(c). 

9The term ‘‘Firm’’ applies to any transaction that 

is identified by a member or member organization 

for clearing in the Firm range at OCC. See Phlx’s 

Pricing Schedule at Options 7, Section 1(c). 

10The term ‘‘Customer’’ applies to any 

transaction that is identified by a member or 

member organization for clearing in the Customer 

range at The Options Clearing Corporation (‘‘OCC’’) 

which is not for the account of a broker or dealer 

or for the account of a ‘‘Professional’’ (as that term 

is defined in Options 1, Section 1(b)(45)). See Phlx’s 

Pricing Schedule at Options 7, Section 1(c). 

should be submitted on or before April 

28, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07337 Filed 4–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94573; File No. SR–Phlx– 

2022–14] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Options 7, 

Section 4 of the Pricing Schedule 

April 1, 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 22, 

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).’’ 

Additionally, the Exchange proposes 

to make a technical amendment and add 

descriptions of three additional terms 

within Options 7, Section 1, General 

Provisions. 

The Exchange originally filed SR– 

Phlx–2022–08 on March 1, 2022. On 

March 10, 2022, the Exchange withdrew 

SR–Phlx–2022–08 and submitted SR– 

Phlx–2022–12. On March 22, 2022, the 

Exchange withdrew SR–Phlx–2022–12 

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 

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 

Phlx proposes to amend its Pricing 

Schedule within Options 7, Section 4, 

‘‘Multiply Listed Options Fees (Includes 

options overlying equities, ETFs, ETNs 

and indexes which are Multiply Listed) 

(Excludes SPY).’’ Specifically, Phlx 

proposes to decrease the Professional 3

Floor 4 Options Transaction Charges 5 in 

multiply-listed Penny and non-Penny 

Symbols. Additionally, the Exchange 

proposes amendments to Options 7, 

Section 1, General Provisions. Each 

change is described below. 

Options 7, Section 4 

Today, the Exchange assesses Options 

Transaction Charges in Multiply Listed 

options, including options overlying 

equities, ETFs, ETNs and indexes and 

excluding options in SPY. The 

Exchange currently assesses the 

following Floor Options Transaction 

Charges in multiply-listed Penny and 

non-Penny Symbols: $0.25 per contract 

for a Professional, $0.35 per contract for 

a Floor Lead Market Maker 6 and Floor 

Market Maker,7 and $0.25 per contract 

for a Broker-Dealer 8 and Firm.9

Customers 10 are not assessed an 

Options Transaction Charge in multiplylisted Penny or non-Penny Symbols. 

The Exchange proposes to decrease 

the Floor Options Transaction Charges 

for Professionals in multiply-listed 

Penny and non-Penny Symbols from 

$0.25 to $0.05 per contract. The 

Exchange believes the decreased 

Options Transaction Charges will attract 

a greater amount of Professional orders 

to Phlx’s Trading Floor. 

Options 7, Section 1 

The Exchange proposes to make a 

technical amendment within Options 7, 

Section 1, General Provisions. The 

Exchange proposes to remove the words 

‘‘on and’’ from description of ‘‘Market 

Maker’’ within Options 7, Section 1(c). 

Those words are not necessary. The 

amended description of Market Maker 

would state, ‘‘The term ‘Market Maker’ 

is defined in Options 1, Section 1(b)(28) 

as a member of the Exchange who is 

registered as an options Market Maker 

pursuant to Options 2, Section 12(a). A 

Market Maker includes SQTs and 

RSQTs as well as Floor Market Makers.’’ 

The Exchange proposes to add three 

additional descriptions to Options 7, 

Section 1(c). Specifically, the Exchange 


khammond on DSKJM1Z7X2PROD with NOTICES