Federal Register / Vol. 86, No. 157 / Wednesday, August 18, 2021 / Notices 46297 

9For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 

10 15 U.S.C. 78s(b)(2)(B). 

11 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. 

investors and the public interest 

because waiver of the operative delay 

will allow ETP Holders that route orders 

to non-exchange venues that accept 

order flow before 3:30 a.m. Eastern Time 

the opportunity to include the Exchange 

in its early morning routing 

determinations. According to the 

Exchange, this proposed rule change 

will not change any Exchange trading 

functions, including when the Early 

Trading Session begins, and the 

technology to support this proposed 

rule change will be available less than 

30 days after filing. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative upon filing.9

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) 10 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–2021–71 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–2021–71. 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–2021–71 and 

should be submitted on or before 

September 8, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–17673 Filed 8–17–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92648; File No. SR– 

NYSEARCA–2021–70] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Equities Fees and Charges 

August 12, 2021. 

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 August 2, 

2021, 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 amend the 

NYSE Arca Equities Fees and Charges 

(‘‘Fee Schedule’’) to (1) modify the 

application of the per share fee for Tape 

B securities; (2) adopt increased credits 

and a cap applicable to the Step Up Tier 

4 credit in Tape B securities; (3) 

eliminate a requirement to qualify for 

the Tape B Tier 2 credit; (4) adopt 

increased credits and a cap applicable to 

the Tape B Step Up Tier; and (5) adopt 

a new pricing tier, MPID Adding Tier, 

applicable to Tape A and Tape C 

securities. The Exchange proposes to 

implement the fee changes effective 

August 2, 2021. 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule to (1) modify the 

application of the per share fee for Tape 

B securities; (2) adopt increased credits 

and a cap applicable to the Step Up Tier 

4 credit in Tape B securities; (3) 

eliminate a requirement to qualify for 

the Tape B Tier 2 credit; (4) adopt 

increased credits and a cap applicable to 

the Tape B Step Up Tier; and (5) adopt 

a new pricing tier, MPID Adding Tier, 

applicable to Tape A and Tape C 

securities. 


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46298 Federal Register / Vol. 86, No. 157 / Wednesday, August 18, 2021 / Notices 

4All references to ETP Holders in connection 

with this proposed fee change include Market 

Makers. 

5See Securities Exchange Act Release No. 51808 

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

(File No. S7–10–04) (Final Rule) (‘‘Regulation 

NMS’’). 

6See Securities Exchange Act Release No. 61358, 

75 FR 3594, 3597 (January 21, 2010) (File No. S7– 

02–10) (Concept Release on Equity Market 

Structure). 

7See Cboe U.S Equities Market Volume 

Summary, available at https://markets.cboe.com/us/ 

equities/market_share. See generally https://

www.sec.gov/fast-answers/ 

divisionsmarketregmrexchangesshtml.html. 

8See FINRA ATS Transparency Data, available at 

https://otctransparency.finra.org/otctransparency/ 

AtsIssueData. A list of alternative trading systems 

registered with the Commission is available at 

https://www.sec.gov/foia/docs/atslist.htm. 

9See Cboe Global Markets U.S. Equities Market 

Volume Summary, available at http://

markets.cboe.com/us/equities/market_share/. 

10See id. 

11Under Section I (Definitions) of the Fee 

Schedule, the term Closing Orders means Market, 

Market-On-Close, Limit-On-Close, and AuctionOnly Orders executed in a Closing Auction. 

12For Retail Orders in securities priced at or 

above $1.00, this fee is $0.0008 per share, and for 

securities priced below $1.00, this fee is 0.1% of 

Dollar Value. 

The proposed changes respond to the 

current competitive environment where 

order flow providers have a choice of 

where to direct liquidity-providing 

orders by offering further incentives for 

ETP Holders 4 to send additional 

liquidity to the Exchange. 

The Exchange proposes to implement 

the fee changes effective August 2, 2021. 

Background 

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.’’ 5

While Regulation NMS has enhanced 

competition, it has also fostered a 

‘‘fragmented’’ market structure where 

trading in a single stock can occur 

across multiple trading centers. When 

multiple trading centers compete for 

order flow in the same stock, the 

Commission has recognized that ‘‘such 

competition can lead to the 

fragmentation of order flow in that 

stock.’’ 6 Indeed, equity trading is 

currently dispersed across 16 

exchanges,7 numerous alternative 

trading systems,8 and broker-dealer 

internalizers and wholesalers, all 

competing for order flow. Based on 

publicly available information, no single 

exchange currently has more than 17% 

market share.9 Therefore, no exchange 

possesses significant pricing power in 

the execution of equity order flow. More 

specifically, the Exchange currently has 

less than 10% market share of executed 

volume of equities trading.10

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can move order flow, or discontinue or 

reduce use of certain categories of 

products. While it is not possible to 

know a firm’s reason for shifting order 

flow, the Exchange believes that one 

such reason is because of fee changes at 

any of the registered exchanges or nonexchange venues to which a firm routes 

order flow. With respect to nonmarketable order flow that would 

provide liquidity on an Exchange 

against which market makers can quote, 

ETP Holders can choose from any one 

of the 16 currently operating registered 

exchanges to route such order flow. 

Accordingly, competitive forces 

constrain exchange transaction fees that 

relate to orders that would provide 

liquidity on an exchange. 

Proposed Rule Change 

Tape B 

Currently, for Exchange Transactions, 

under Section III (Standard Rates— 

Transactions), the Exchange charges a 

fee of $0.0012 per share for Closing 

Orders 11 in securities priced at or above 

$1.00.12 Pursuant to footnote (f), this fee 

currently applies to orders in Tape A 

Securities, Tape C Securities and NYSE 

Arca primary listed securities (includes 

all ETFs/ETNs). The Exchange currently 

does not charge this fee for orders in 

securities whose primary market is 

NYSE American LLC (‘‘NYSE 

American’’) or Cboe BZX Exchange, Inc. 

(‘‘Cboe BZX’’). The Exchange proposes 

to modify the application of this fee by 

amending the text of footnote (f) so that 

the fee would apply to all securities, i.e., 

Tape A, Tape B and Tape C securities. 

The purpose of the proposed fee change 

is to simplify the Fee Schedule and 

maintain consistency with respect to the 

fee charged by the Exchange when it 

executes Closing Orders in all securities. 

Similarly, for Exchange 

Transaction[sic], under Section VI (Tier 

Rates—Round Lots and Odd Lots (Per 

Share Price $1.00 or Above)), the 

Exchange currently charges a fee of 

$0.0010 per share for Market, MarketOn-Close, Limit-On-Close, and AuctionOnly Orders executed in a Closing 

Auction in NYSE Arca Primary listed 

securities (includes all ETFs/ETNs). 

This fee is applicable under Tier 1 and 

Tier 2 pricing tiers. 

The Exchange currently does not 

charge this fee for orders in securities 

whose primary market is NYSE 

American or Cboe BZX. The Exchange 

proposes to modify the application of 

this fee by deleting the words ‘‘in NYSE 

Arca primary listed securities (includes 

all ETFs/ETNs)’’ in Tier 1 and Tier 2 so 

that the fee would apply to all Tape B 

securities. The purpose of the proposed 

fee change is to simplify the Fee 

Schedule and maintain consistency 

with respect to the fee charged by the 

Exchange when it executes Closing 

Orders in all Tape B securities. 

Step Up Tier 4 

The proposed rule change is designed 

to be available to all ETP Holders on the 

Exchange and is intended to provide 

ETP Holders an opportunity to receive 

enhanced rebates by executing more of 

their orders in Tape B securities on the 

Exchange. 

The Exchange currently has multiple 

levels of step-up pricing tiers, Step Up 

Tiers 1—5, which are designed to 

encourage ETP Holders that provide 

displayed liquidity on the Exchange to 

increase that order flow, which would 

benefit all ETP Holders by providing 

greater execution opportunities on the 

Exchange. In order to provide an 

incentive for ETP Holders to direct 

providing displayed order flow to the 

Exchange, the credits increase in the 

various tiers based on increased levels 

of volume directed to the Exchange. 

Currently, the following credits are 

available to ETP Holders that provide 

increased levels of displayed liquidity 

on the Exchange: 

Tier Credit for providing 

displayed liquidity 

Step Up Tier ..... $0.0030 (Tape A). 

$0.0023 (Tape B). 

$0.0031 (Tape C). 

Step Up Tier 2 .. $0.0028 (Tape A and C). 

$0.0022 (Tape B). 

Step Up Tier 3 .. $0.0025 (Tape A and C). 

$0.0022 (Tape B). 

Step Up Tier 4 .. $0.0033 (Tape A and C). 

$0.0034 (Tape B). 

Step Up Tier 5 .. $0.0032 (Tape A, B and 

C). 

Under the Step Up Tier 4, if an ETP 

Holder increases its providing liquidity 

on the Exchange by a specified 

percentage over the level that such ETP 

Holder provided liquidity in September 

2019, it is eligible to earn higher credits. 

Specifically, to qualify for the credits 

under Step Up Tier 4, an ETP Holder 


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13See Securities Exchange Act Release Nos. 

86122 (June 17, 2019), 84 FR 29258 (June 21, 2019) 

(SR–NYSEArca-2019–43); 87292 (October 11, 2019), 

84 FR 55603 (October 17, 2019) (SR–NYSEArca2019–70); and 88833 (May 7, 2020), 85 FR 28676 

(May 13, 2020) (SR–NYSEArca-2020–39). 

14See Securities Exchange Act Release Nos. 

88436 (March 20, 2020), 85 FR 17112 (March 26, 

2020) (SR–NYSEArca-2020–21); and 88833 (May 7, 

2020), 85 FR 28676 (May 13, 2020) (SR–NYSEArca– 

2020–39). 

15The term ‘‘affiliate’’ means any ETP Holder 

under 75% common ownership or control of that 

ETP Holder. See Fee Schedule, NYSE Arca 

Marketplace: General, Section II. Aggregate Billing 

of Affiliated ETP Holders. 

16Under the Standard Rates, ETP Holders receive 

a credit of $0.0020 per share for Tape B orders that 

provide liquidity. 

17See Securities Exchange Act Release No. 87292 

(October 11, 2019), 84 FR 55603 (October 17, 2019) 

(SR–NYSEArca–2019–70). 

must directly execute providing average 

daily volume (ADV) per month that is 

an increase of no less than 0.40% of US 

CADV for that month over the ETP 

Holder’s providing ADV in September 

2019, taken as a percentage of US 

CADV. 

If an ETP Holder meets the Step Up 

Tier 4 requirement, such ETP Holder is 

currently eligible to earn a credit of: 

• $0.0033 per share for orders that 

provide displayed liquidity in Tape A 

and Tape C Securities, and 

• $0.0034 per share for orders that 

provide displayed liquidity in Tape B 

Securities.13

ETP Holders that qualify for Step Up 

Tier 4 do not receive any additional 

incremental Tape B Tier credits for 

providing displayed liquidity, including 

any incremental credits associated with 

Less Active ETP Securities and are 

currently capped at $0.0034 per share.14

With this proposed rule change, the 

Exchange proposes to modify the cap 

applicable to the Step Up Tier 4 credit 

in Tape B securities. As proposed, an 

ETP Holder that is registered as a Lead 

Market Maker can receive up to a 

combined credit of $0.0036 per share on 

all its adding volume in Tape B 

Securities if that ETP Holder, together 

with its affiliates,15 executes providing 

ADV in Tape B Securities that is at least 

40% over the ETP Holder’s providing 

ADV in Q3 2019, as a percentage of US 

Tape B CADV. 

The purpose of the proposed rule 

change is to incentivize ETP Holders to 

register as Lead Market Makers and 

generally to incentivize order flow 

providers to send liquidity-providing 

orders to the Exchange while capping 

the level of credit that such participants 

would receive. The Exchange believes 

that, although it is proposing to 

continue to limit the financial incentive 

for orders that provide displayed 

liquidity in Tape B securities, the 

current rebate, i.e., $0.0034 per share, is 

among one of the highest credits paid by 

the Exchange and should continue to 

serve as an incentive for ETP Holders to 

direct displayed liquidity providing 

orders to the Exchange. 

Tape B Tier 2 

Currently, under the Tape B Tier 2 

pricing tier, an ETP Holder could 

qualify for a credit of $0.0028 per 

share 16 if such ETP Holder, on a daily 

basis, measured monthly, directly 

executes providing volume in Tape B 

Securities during the billing month 

(‘‘Tape B Adding ADV’’) that is either 

(1) equal to at least 1.0% of the US Tape 

B CADV or (2) equal to at least 0.20% 

of the US Tape B CADV for the billing 

month over the ETP Holder’s or Market 

Maker’s Q2 2015 Tape B Adding ADV 

taken as a percentage of Tape B CADV 

or (3) equal to at least 0.25% of the US 

Tape B CADV for the billing month over 

the ETP Holder’s or Market Maker’s 

April 2020 Tape B Adding ADV taken 

as a percentage of Tape B CADV. 

The Exchange proposes to eliminate 

the second requirement above which 

requires an ETP Holder to execute 

providing volume in Tape B Securities 

equal to at least 0.20% of the US Tape 

B CADV for the billing month over the 

ETP Holder’s or Market Maker’s Q2 

2015 Tape B Adding ADV taken as a 

percentage of Tape B CADV. The 

Exchange has observed that, over the 

last 6 months, not a single ETP Holder 

has qualified for the Tape B Tier 2 credit 

by utilizing the requirement that the 

Exchange is proposing to eliminate. 

Given that this requirement has not 

served to meaningfully increase activity 

on the Exchange, the Exchange has 

determined to eliminate it from the Fee 

Schedule. The Exchange is not 

proposing any other change to the Tape 

B Tier 2 pricing tier. 

With this proposed rule change, ETP 

Holders would continue to be able to 

qualify for the Tape B Tier 2 credit of 

$0.0028 per share for providing 

liquidity in Tape B Securities if such 

ETP Holder, on a daily basis, measured 

monthly, directly executes Tape B 

Adding ADV that is either (1) equal to 

at least 1.0% of the US Tape B CADV 

or (2) equal to at least 0.25% of the US 

Tape B CADV for the billing month over 

the ETP Holder’s or Market Maker’s 

April 2020 Tape B Adding ADV taken 

as a percentage of Tape B CADV. 

The Exchange believes that 

eliminating a requirement that has 

become underutilized will also 

streamline the Fee Schedule. The 

Exchange further believes that the 

remaining requirements will continue to 

incentivize ETP Holders to submit 

liquidity providing orders in Tape B 

Securities to qualify for the Tape B Tier 

2 credit. The Exchange is not proposing 

any change to the level of Tape B Tier 

2 credit. 

Tape B Step Up Tier 

Currently, ETP Holders that meet the 

requirement under Tape B Step Up Tier 

can earn the following incremental 

credits: 

• An incremental credit of $0.0002 

per share when an ETP Holder’s 

providing ADV in Tape B Securities 

during the billing month is at least 

0.50% of the US Tape B CADV and the 

ETP Holder’s providing ADV in Tape B 

Securities during the billing month as a 

percentage of US Tape B CADV is at 

least 20% more but less than 30% of the 

ETP Holder’s providing ADV as a 

percentage of US Tape B CADV in 3Q 

2019; 

• An incremental credit of $0.0003 

per share when an ETP Holder’s 

providing ADV in Tape B Securities 

during the billing month is at least 

0.50% of the US Tape B CADV and the 

ETP Holder’s providing ADV in Tape B 

Securities during the billing month as a 

percentage of US Tape B CADV is at 

least 30% more but less than 40% of the 

ETP Holder’s providing ADV as a 

percentage of US Tape B CADV in 3Q 

2019; and 

• An incremental credit of $0.0004 

per share when an ETP Holder’s 

providing ADV in Tape B Securities 

during the billing month is at least 

0.50% of the US Tape B CADV and the 

ETP Holder’s providing ADV in Tape B 

Securities during the billing month as a 

percentage of US Tape B CADV is at 

least 40% more than the ETP Holder’s 

providing ADV as a percentage of US 

Tape B CADV in 3Q 2019.17

The incremental credits are payable in 

addition to the ETP Holder’s Tiered or 

Standard credit(s); provided, however, 

that such combined credit(s) in Tape B 

Securities currently cannot exceed 

$0.0032 per share. 

The Exchange proposes to adopt an 

increased cap applicable under the Tape 

B Step Up Tier pricing tier. As 

proposed, if an ETP Holder’s providing 

ADV increases at least 150% over the 

ETP Holder’s providing ADV in Q3 

2019, then the ETP Holder can receive 

a combined credit of up to: 

• $0.0033 per share if the ETP Holder 

is registered as a Lead Market Maker or 

Market Maker in at least 150 Less Active 

ETPs in which it meets at least two 

Performance Metrics, and has Tape B 

Adding ADV equal to at least 0.65% of 

US Tape B CADV, or 

• $0.0034 per share if the ETP Holder 

or Market Maker is registered as a Lead 


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18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(4) and (5). 

20See Securities Exchange Act Release No. 51808 

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

Market Maker or Market Maker in at 

least 200 Less Active ETPs in which it 

meets at least two Performance Metrics, 

and has Tape B Adding ADV equal to 

at least 0.70% of US Tape B CADV. 

For example, assume an ETP Holder 

has providing ADV of 1.20% of Tape B 

CADV in Tape B securities in the 

baseline period of third quarter of 2019. 

Further assume that the same ETP 

Holder has providing ADV of Tape B 

CADV of 1.80% in Tape B securities in 

the billing month. The ETP Holder in 

this example would qualify for an 

incremental credit of $0.0004 per share 

because the ETP Holder has providing 

ADV in Tape B Securities during the 

billing month of 1.80%, which is at least 

0.50% of the US Tape B CADV, and 

because the ETP Holder has providing 

ADV of Tape B CADV of 1.80%, which 

is at least 40% more than the ETP 

Holder’s baseline ADV of 1.20% of Tape 

B CADV. Also assume further that the 

ETP Holder is registered as a Lead 

Market Maker or Market Maker in 150 

Less Active ETPs in which it meets at 

least two Performance Metrics. 

In the above example, the ETP Holder 

would also qualify for the existing Tape 

B Tier 1 credit of $0.0030 per share by 

meeting the 1.5% of the US Tape B 

CADV requirement, for a total credit of 

$0.0034 per share ($0.0030 per share 

plus $0.0004 per share). Given the cap 

currently in place, the ETP Holder’s 

combined credit would be reduced to 

$0.0032 per share. However, since the 

ETP Holder is registered as a Lead 

Market Maker or Market Maker in at 

least 150 Less Active ETPs in which it 

meets at least two Performance Metrics, 

under the proposed rule change, the 

ETP Holder would receive a combined 

credit of $0.0033 per share. If the ETP 

Holder was registered as a Lead Market 

Maker or Market Maker in 200 Less 

Active ETPs in which it met at least two 

Performance Metrics, under the 

proposed rule change, ETP Holder 

would receive a combined credit of 

$0.0034 per share. Under both 

scenarios, the ETP Holder meets the 

Tape B Adding ADV requirement of 

0.70% of US Tape B CADV for the 

$0.0034 per share cap. 

As noted above, the Exchange 

operates in a competitive environment, 

particularly as it relates to attracting 

non-marketable, providing liquidity that 

would be displayed on the Exchange. 

The purpose of this proposed rule 

change is to provide an incentive to ETP 

Holders to register as Lead Market 

Makers or Market Makers in Less Active 

ETPs and to incentivize such liquidity 

providers to increase the orders sent to 

the Exchange. 

MPID Adding Tier 

The Exchange proposes to adopt a 

new pricing tier, MPID Adding Tier, 

that would offer a per share credit for 

orders that provide liquidity in Tape A 

and Tape C securities. As proposed, to 

qualify for the proposed pricing tier, an 

MPID would be required to execute 

providing ADV in all securities that is 

at least 2 times more than its providing 

ADV in 2Q 2021, as a percentage of US 

CADV. A qualifying MPID would 

receive a credit for providing liquidity 

in Tape A and Tape C securities of 

$0.0028 per share if the MPID has least 

4 million shares of providing ADV 

during the billing month, or $0.0029 per 

share if the MPID has at least 9 million 

shares of providing ADV during the 

billing month. 

For example, assume an MPID has 

providing ADV of 2 million shares of 

Tape A, Tape B and Tape C securities 

in the baseline period of 2Q 2021. 

Further assume that the same MPID has 

providing ADV of 4 million shares in 

the billing month, which is 2 times 

more than the baseline ADV of 2 million 

shares. Under the proposed rule change, 

the MPID would receive a credit of 

$0.0028 per share for adding liquidity in 

Tape A and Tape C securities. If instead 

the MPID has providing ADV of 9 

million shares in the billing month, 

which is 4.5 times more than the 

baseline period, then the MPID would 

receive a credit of $0.0029 per share for 

adding liquidity in Tape A and Tape C 

securities. 

The proposed rule change is designed 

to incentivize ETP Holders to increase 

liquidity-providing orders in Tape A 

and Tape C securities they send to the 

Exchange, which would support the 

quality of price discovery on the 

Exchange and provide additional 

liquidity for incoming orders. As noted 

above, the Exchange operates in a 

competitive environment, particularly 

as it relates to attracting non-marketable, 

which add liquidity to the Exchange. 

Because the proposed tier requires an 

ETP Holder’s MPID to increase the 

volume of its trades in orders that add 

liquidity over the MPID’s 2Q 2021 

baseline, the Exchange believes that the 

proposed credits would provide an 

incentive for all ETP Holders to send 

additional liquidity to the Exchange in 

order to qualify for them. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,18 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,19 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 Fee Change Is Reasonable 

As discussed above, the Exchange 

operates in a highly fragmented and 

competitive market. The Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, 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.’’ 20

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can shift order flow, or discontinue to 

reduce use of certain categories of 

products, in response to fee changes. 

With respect to non-marketable order 

which provide liquidity on an 

Exchange, ETP Holders can choose from 

any one of the 16 currently operating 

registered exchanges to route such order 

flow. Accordingly, competitive forces 

reasonably constrain exchange 

transaction fees that relate to orders that 

would provide displayed liquidity on an 

exchange. Stated otherwise, changes to 

exchange transaction fees can have a 

direct effect on the ability of an 

exchange to compete for order flow. 

Tape B 

The Exchange believes the proposed 

amendment to the Tape B fees is 

reasonable because it seeks to 

standardize the fee for Tape B securities. 

The Exchange periodically reviews its 

fees and rebates and determined that it 

does not currently charge a fee for 

Closing Orders in Tape B securities 

whose primary market is NYSE 

American or Cboe BZX, nor does the 

Exchange currently charge for Market, 

Market-On-Close, Limit-On-Close, and 

Auction-Only Orders executed in a 

Closing Auction for securities whose 

primary market is NYSE American or 

Cboe BZX. The Exchange believes it is 


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Federal Register / Vol. 86, No. 157 / Wednesday, August 18, 2021 / Notices 46301 

21See BZX Fee Schedule, Footnote 2, Step Up 

Tiers, and Footnote 4, Single Investor MPID Tiers, 

at https://www.cboe.com/us/equities/membership/ 

fee_schedule/bzx/. 

reasonable to charge the same fee for all 

Tape B securities. 

Step Up Tier 4 

The Exchange believes the proposed 

rule change to adopt an increased cap 

on the credit applicable to the Step Up 

Tier 4 credit in Tape B securities is 

reasonable because the increased credit, 

which would be among the highest paid 

by the Exchange, outside of Lead Market 

Maker credits for adding liquidity, 

would serve to incentivize ETP Holders 

to increase their participation on the 

Exchange as Lead Market Makers and 

execute a greater number of orders in 

Tape B securities on the Exchange. The 

Exchange believes the increased credits 

would continue to encourage ETP 

Holders to submit additional liquidity to 

a national securities exchange and to 

participate as a Lead Market Maker or 

Market Maker. The Exchange believes it 

is reasonable to require ETP Holders to 

meet the applicable volume threshold to 

qualify for the increased credits. 

Submission of additional liquidity to 

the Exchange would promote price 

discovery and transparency and 

enhance order execution opportunities 

for ETP Holders from the substantial 

amounts of liquidity present on the 

Exchange. The Exchange notes that the 

requirement to execute providing ADV 

that is at least 40% over the ETP 

Holder’s or Market Maker’s providing 

ADV in Q3 2019 is the same as the 

requirement to achieve the top 

incremental credit for Tape B Step Up 

Tier. The Exchange believes that 

adopting an identical requirement 

would provide ETP Holders a further 

incentive to provide additional liquidity 

in Tape B Securities. Additionally, the 

Exchange believes that utilizing the 

same baseline as Tape B Step Up Tier 

would make it easier for firms to 

monitor their providing ADV for both 

tiers, as opposed introducing a new 

baseline. All ETP Holders would benefit 

from the greater amounts of liquidity 

that will be present on the Exchange, 

which would provide greater execution 

opportunities. 

Tape B Tier 2 

The Exchange believes that the 

proposed rule change to eliminate one 

of the requirements to qualify for the 

Tape B Tier 2 credit is reasonable 

because the requirement proposed for 

deletion has been underutilized and has 

generally not incentivized ETP Holders 

to bring liquidity and increase trading 

on the Exchange. 

In the last 6 months, no ETP Holder 

has availed itself of the Tape B Tier 2 

by meeting the requirement proposed 

for deletion. The Exchange does not 

anticipate any ETP Holder in the near 

future to qualify for the Tape B Tier 2 

credit by meeting the requirement 

proposed for deletion. The Exchange 

believes it is reasonable to eliminate 

requirements within pricing tiers when 

they become underutilized. The 

Exchange believes eliminating 

underutilized tier requirements would 

also simplify the Fee Schedule. The 

Exchange further believes that removing 

reference to underutilized tier 

requirements that the Exchange 

proposes to eliminate from the Fee 

Schedule would also add clarity to the 

Fee Schedule. 

Tape B Step Up Tier 

The Exchange believes the proposed 

rule change to modify the credit and the 

cap applicable under the Tape B Step 

Up Tier for Tape B securities is a 

reasonable means of attracting 

additional liquidity to the Exchange. 

The Exchange believes the modified 

credits, which are among the highest 

paid by the Exchange, would continue 

to encourage ETP Holders to submit 

additional liquidity to a national 

securities exchange. The Exchange 

believes it is reasonable to require ETP 

Holders to meet the applicable volume 

threshold to qualify for the increased 

credits, given the higher combined 

credit of $0.0033 per share and $0.0034 

per share the Exchange would pay if the 

tier criteria is met. Submission of 

additional liquidity to the Exchange 

would promote price discovery and 

transparency and enhance order 

execution opportunities for ETP Holders 

from the substantial amounts of 

liquidity present on the Exchange. The 

Exchange also believes it is reasonable 

to require ETP Holders be registered as 

a Lead Market Maker or Market Maker 

in a minimum number [sic] Less Active 

ETPs and to meet at least two 

Performance Metrics in such securities 

as the Exchange believes this 

requirement would enhance market 

quality in Less Active ETPs and support 

the quality of price discovery in such 

securities. All ETP Holders would 

benefit from the greater amounts of 

liquidity that will be present on the 

Exchange, which would provide greater 

execution opportunities. 

MPID Adding Tier 

The Exchange believes the proposed 

MPID Adding Tier is a reasonable 

means to encourage ETP Holders to 

increase their liquidity providing orders 

in Tape A and Tape C securities each 

month over a predetermined baseline by 

offering liquidity providers an 

opportunity to receive an enhanced 

rebate. Further, the Exchange believes 

it’s reasonable to provide the proposed 

credit to the qualifying MPID if it meets 

the tier’s criteria because this would 

encourage individual MPIDs to send 

orders that provide liquidity to the 

Exchange, thereby contributing to robust 

levels of liquidity, which benefits all 

market participants, and promoting 

price discovery and transparency. Since 

the proposed tier would be new, no ETP 

Holder’s MPID currently qualifies for 

the proposed pricing tier. As previously 

noted, without a view of ETP Holder 

activity on other exchanges and offexchange venues, the Exchange has no 

way of knowing whether the proposed 

rule change would result in any ETP 

Holder’s MPID qualifying for the tier. 

The Exchange believes the proposed 

credit is reasonable as it would provide 

an additional incentive for an ETP 

Holder’s MPID to direct its order flow to 

the Exchange and provide meaningful 

added levels of liquidity in order to 

qualify for the proposed credit, thereby 

contributing to depth and market 

quality on the Exchange. 

As noted above, the Exchange 

operates in a highly competitive 

environment, particularly for attracting 

order flow that provides displayed 

liquidity on an exchange. More 

specifically, the Exchange notes that 

greater add volume order flow may 

provide for deeper, more liquid markets 

and execution opportunities at 

improved prices, which the Exchange 

believes incentivizes liquidity providers 

to submit additional liquidity and 

enhance execution opportunities. This 

overall increase in activity would 

deepen the Exchange’s liquidity pool, 

offer additional cost savings, support 

the quality of price discovery, promote 

market transparency and improve 

market quality, for all investors. The 

Exchange believes it is reasonable to 

provide higher credits in Tape A and 

Tape C securities to incentivize 

liquidity adding orders in those 

securities, and not in Tape B securities, 

because Tape A and Tape C securities 

are non-NYSE Arca-listed securities and 

do not have Lead Market Makers or 

Market Makers to provide additional 

liquidity. The Exchange notes that other 

markets with which the Exchange 

competes currently offer its members an 

opportunity to earn rebates based on the 

activity of the member’s MPID.21 The 

Exchange believes the proposed new 

pricing tier continues to be a reasonable 


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46302 Federal Register / Vol. 86, No. 157 / Wednesday, August 18, 2021 / Notices 

means to encourage ETP Holders to 

increase their liquidity on the Exchange. 

The Proposed Fee Change is an 

Equitable Allocation of Fees and Credits 

The Exchange believes its proposal 

equitably allocates its fees among its 

market participants. 

Tape B 

The Exchange believes that the 

proposed rule change constitutes an 

equitable allocation of reasonable fees 

because the proposed fee is comparable 

to the fee charged by the Exchange for 

the same activity in NYSE Arca-listed 

securities and would apply equally to 

all ETP Holders that choose to execute 

their orders in Tape B securities on the 

Exchange. The proposed change may 

impact the submission of orders to a 

national securities exchange, and to the 

extent that ETP Holders continue to 

submit such orders to the Exchange, the 

proposed rule change would not have a 

negative impact to ETP Holders trading 

on the Exchange because the proposed 

fee would be in line with the fee 

currently charged by the Exchange for 

trading in NYSE Arca-listed securities. 

However, without having a view of ETP 

Holder’s activity on other markets and 

off-exchange venues, the Exchange has 

no way of knowing whether this 

proposed rule change would result in a 

change in trading behavior by ETP 

Holders. 

Step Up Tier 4 

The Exchange believes the proposed 

amendment to the credit and the cap 

under Step Up Tier 4 equitably allocates 

its fees and credits among market 

participants because it is reasonably 

related to the value of the Exchange’s 

market quality associated with higher 

equities volume. The Exchange believes 

the proposed increased credits, which 

would be among the highest paid by the 

Exchange, would provide an incentive 

for ETP Holders to increase their 

participation as Lead Market Makers on 

the Exchange and execute a greater 

amount of their orders in Tape B 

securities on the Exchange. The 

Exchange believes the proposed 

increased credits would continue to 

encourage ETP Holders to send orders 

that add liquidity to the Exchange, 

thereby contributing to robust levels of 

liquidity for the benefit all market 

participants. The Exchange believes the 

proposed rule change would improve 

market quality for all market 

participants on the Exchange and attract 

more liquidity to the Exchange. ETP 

Holders that currently qualify for credits 

associated with Step Up pricing tiers on 

the Exchange will continue to receive 

credits when they provide liquidity to 

the Exchange. The Exchange believes 

that recalibrating the requirements for 

providing liquidity will continue to 

attract order flow and liquidity to the 

Exchange for the benefit of investors 

generally. 

Tape B Tier 2 

The Exchange believes that the 

proposed rule change to eliminate one 

of the requirements to qualify for the 

Tape B Tier 2 credit is an equitable 

allocation of its fees and credits. The 

Exchange believes that eliminating a tier 

requirement from the Fee Schedule 

when such requirement becomes 

underutilized is equitable because the 

requirement would be eliminated in its 

entirety and would no longer be 

available to any ETP Holder. 

Tape B Step Up Tier 

The Exchange believes the proposed 

amendment to the credit and the cap 

under the Tape B Step Up Tier equitably 

allocates its fees and credits among 

market participants because it is 

reasonably related to the value of the 

Exchange’s market quality associated 

with higher equities volume. As 

proposed, the Exchange would provide 

qualifying ETP Holders with some of the 

highest credits payable by the Exchange 

provided they participate as Lead 

Market Makers and provide increased 

Tape B adding ADV. The more an ETP 

Holder participates, the greater the 

credit they would receive. The 

Exchange believes the proposed credits 

would encourage ETP Holders to send 

orders that add liquidity to the 

Exchange, thereby contributing to robust 

levels of liquidity, which would benefit 

all market participants. 

MPID Adding Tier 

The Exchange believes that the 

proposed adoption of the MPID Adding 

Tier represents an equitable allocation 

of fees because all ETP Holders will be 

eligible for the proposed pricing tier and 

have the opportunity to meet the tier’s 

criteria and receive the applicable rebate 

if such criteria is met. That is, the 

proposed pricing tier is designed as an 

incentive to any and all liquidity 

providers interested in meeting the tier 

criteria to submit additional order flow 

to the Exchange and each will receive 

the proposed rebate if the tier criteria is 

met. While the Exchange has no way of 

knowing whether this proposed rule 

change would definitively result in any 

particular ETP Holder qualifying for the 

proposed pricing tier, the Exchange 

anticipates a number of ETP Holders 

would be able to meet, or will 

reasonably be able to meet, the proposed 

criteria. However, without having a 

view of activity on other markets and 

off-exchange venues, the Exchange has 

no way of knowing whether this 

proposed rule change would result in 

any ETP Holder qualifying for the 

proposed tier. The Exchange also notes 

that the proposed change will not 

adversely impact any ETP Holder’s 

pricing or their ability to qualify for 

other rebate tiers. Rather, should an ETP 

Holder not meet the proposed criteria, 

the ETP Holder will merely not receive 

the corresponding rebate. 

The Proposed Fee Change Is Not 

Unfairly Discriminatory 

The Exchange believes that the 

proposal is not unfairly discriminatory. 

In the prevailing competitive 

environment, ETP Holders are free to 

disfavor the Exchange’s pricing if they 

believe that alternatives offer them 

better value. 

Tape B 

The proposal to amend the Tape B 

fees is not unfairly discriminatory 

because the fee would be applied on an 

equal basis to all ETP Holders that 

choose to send their orders in Tape B 

securities to the Exchange. Additionally, 

the proposed rule change neither targets 

nor will it have a disparate impact on 

any particular category of market 

participant. The proposal does not 

permit unfair discrimination because 

the proposed fees would be applied to 

all ETP Holders, who would all be 

charged the same fee on an equal basis. 

Accordingly, no ETP Holder already 

operating on the Exchange would be 

disadvantaged by this allocation of fees. 

Step Up Tier 4 

The Exchange believes it is not 

unfairly discriminatory to cap the 

increased credit payable under Step Up 

Tier 4 for providing displayed liquidity 

in Tape B securities because the 

proposed credit and cap would be 

applied on an equal basis to all ETP 

Holders, who would all be subject to the 

proposed change on an equal basis. 

Additionally, the proposal neither 

targets nor will it have a disparate 

impact on any particular category of 

market participant. The proposal does 

not permit unfair discrimination 

because the proposed change would be 

applied to all ETP Holders, who would 

all be subject to the proposed change on 

an equal basis. Accordingly, no ETP 

Holder already operating on the 

Exchange would be disadvantaged by 

this allocation of fees. 


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Federal Register / Vol. 86, No. 157 / Wednesday, August 18, 2021 / Notices 46303 

22 15 U.S.C. 78f(b)(8). 

23See Securities Exchange Act Release No. 51808, 

70 FR 37495, 37498–99 (June 29, 2005) (S7–10–04) 

(Final Rule). 

Tape B Tier 2 

The Exchange believes that the 

proposed rule change to eliminate one 

of the requirements to qualify for the 

Tape B Tier 2 credit is not unfairly 

discriminatory. The Exchange believes 

that eliminating a tier requirement from 

the Fee Schedule when such 

requirement becomes underutilized is 

equitable and not unfairly 

discriminatory because the requirement 

would be eliminated in its entirety and 

would no longer be available to any ETP 

Holder. Additionally, the proposed rule 

change neither targets nor will it have 

a disparate impact on any particular 

category of market participant. 

Tape B Step Up Tier 

The Exchange believes it is not 

unfairly discriminatory to modify and 

cap the credit payable under Tape B 

Step Up Tier 4 for providing displayed 

liquidity in Tape B securities because 

the proposed increased cap would be 

applied on an equal basis to all ETP 

Holders, who would all be subject to the 

proposed cap on an equal basis. 

Additionally, the proposal neither 

targets nor will it have a disparate 

impact on any particular category of 

market participant. The proposal does 

not permit unfair discrimination 

because the proposed cap would be 

applied to all ETP Holders, who would 

all be subject to the cap on an equal 

basis. 

MPID Adding Tier 

The Exchange believes it is not 

unfairly discriminatory to provide the 

proposed credit as the credit would be 

provided on an equal basis to all ETP 

Holders that add liquidity by meeting 

the new proposed MPID Adding Tier’s 

requirements. The Exchange also 

believes that the proposed change is not 

unfairly discriminatory because it is 

reasonably related to the value to the 

Exchange’s market quality associated 

with higher volume. The proposed new 

tier is designed as an incentive to any 

and all ETP Holders interested in 

meeting the tier criteria to submit 

additional order flow to the Exchange 

and each will receive the proposed 

rebate if the tier criteria is met. The 

Exchange also notes that the proposed 

change will not adversely impact any 

ETP Holder’s pricing or their ability to 

qualify for other tiers. Rather, should an 

ETP Holder not meet the criteria of the 

proposed new pricing tier, the ETP 

Holder will merely not receive the 

corresponding rebate. 

* * * * * 

In the prevailing competitive 

environment, ETP Holders are free to 

disfavor the Exchange’s pricing if they 

believe that alternatives offer them 

better value. Moreover, this proposed 

rule change neither targets nor will it 

have a disparate impact on any 

particular category of market 

participant. The Exchange believes that 

this proposal does not permit unfair 

discrimination because the changes 

described in this proposal would be 

applied to all similarly situated ETP 

Holders and all ETP Holders would be 

subject to the same requirements. 

Accordingly, no ETP Holder already 

operating on the Exchange would be 

disadvantaged by the proposed 

allocation of fees. The Exchange further 

believes that the proposed changes 

would not permit unfair discrimination 

among ETP Holders because the 

standard and tiered rates are available 

equally to all ETP Holders. 

Finally, the submission of orders to 

the Exchange is optional for ETP 

Holders in that they could choose 

whether to submit orders to the 

Exchange and, if they do, the extent of 

its activity in this regard. The Exchange 

believes that it is subject to significant 

competitive forces, as described below 

in the Exchange’s statement regarding 

the burden on competition. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,22 the Exchange believes that the 

proposed rule change would not 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 ETP Holders. 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.’’ 23

Intramarket Competition. The 

Exchange believes the proposed 

amendments to its Fee Schedule would 

not impose any burden on competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange does not believe that the 

proposed change represents a significant 

departure from previous pricing offered 

by the Exchange or its competitors. The 

proposed changes are designed to attract 

additional order flow to the Exchange. 

The Exchange believes that the 

proposed adoption of a new pricing tier 

and amending credits associated with 

established tiers would incentivize 

market participants to direct liquidity 

adding order flow to the Exchange, 

bringing with it additional execution 

opportunities for market participants 

and improved price transparency. 

Greater overall order flow, trading 

opportunities, and pricing transparency 

benefits all market participants on the 

Exchange by enhancing market quality 

and continuing to encourage ETP 

Holders to send orders, thereby 

contributing towards a robust and wellbalanced market ecosystem. The 

Exchange also does not believe the 

proposed rule change to eliminate 

underutilized requirements to qualify 

for a pricing tier will impose any burden 

on intramarket competition because the 

proposed change would impact all ETP 

Holders uniformly (i.e., the requirement 

will not be available to any ETP Holder). 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily choose to send 

their orders to other exchange and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. As noted above, the 

Exchange’s market share of intraday 

trading (i.e., excluding auctions) is 

currently less than 10%. In such an 

environment, the Exchange must 

continually adjust its fees and rebates to 

remain competitive with other 

exchanges and with off-exchange 

venues. Because competitors are free to 

modify their own fees and credits in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

does not believe its proposed fee change 

can impose any burden on intermarket 

competition. 

The Exchange believes that the 

proposed change could promote 

competition between the Exchange and 

other execution venues, including those 

that currently offer similar order types 

and comparable transaction pricing, by 

encouraging additional orders to be sent 

to the Exchange for execution. 


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46304 Federal Register / Vol. 86, No. 157 / Wednesday, August 18, 2021 / Notices 

24 15 U.S.C. 78s(b)(3)(A). 

25 17 CFR 240.19b–4(f)(2). 

26 15 U.S.C. 78s(b)(2)(B). 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Options 1, Section 1(b)(53) provides the term 

‘‘Short Term Option Series’’ a series in an option 

class that is approved for listing and trading on the 

Exchange in which the series is opened for trading 

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) 24 of the Act and 

subparagraph (f)(2) of Rule 19b–4 25

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) 26 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–2021–70 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–2021–70. 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–2021–70, and 

should be submitted on or before 

September 8, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–17667 Filed 8–17–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92655; File No. SR–Phlx– 

2021–43] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing of 

Proposed Rule Change To Permit 

Monday and Wednesday Expirations 

for Options Listed Pursuant to the 

Short Term Option Series Program on 

the iShares Russell 2000 ETF (‘‘IWM’’) 

August 12, 2021. 

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 August 6, 

2021, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 permit 

Monday and Wednesday expirations for 

options listed pursuant to the Short 

Term Option Series Program on the 

iShares Russell 2000 ETF. 

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 

The Exchange proposes to amend 

Phlx Options 4, Section 5 at 

Supplementary Material .03 to permit 

Monday and Wednesday expirations for 

options listed pursuant to the Short 

Term Option Series Program 

(‘‘Program’’) on the iShares Russell 2000 

ETF (‘‘IWM’’). 

A Short Term Option Series means a 

series in an option class that is 

approved for listing and trading on the 

Exchange in which the series is opened 

for trading on any Monday, Tuesday, 

Wednesday, Thursday or Friday that is 

a business day and that expires on the 

Monday, Wednesday or Friday of the 

next business week, or, in the case of a 

series that is listed on a Friday and 

expires on a Monday, is listed one 

business week and one business day 

prior to that expiration.3 The Exchange 


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