Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices 49399 

37See supra note 5. 

38 Id. 

39Similarly, the Commission finds that the nonsubstantive and technical changes to Form CMA are 

consistent with the protection of investors and the 

public interest. 40 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Trading Permit’’ means a permit 

issued by the Exchange that confers the ability to 

transact on the Exchange. See Notice, infra note 5, 

at 37379. The term ‘‘Member’’ means an individual 

or organization that is registered with the Exchange 

pursuant to Chapter II of Exchange Rules for 

purposes of trading on the Exchange as an 

‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’ 

Members are deemed ‘‘members’’ under the 

Exchange Act. See id. 

4 15 U.S.C. 78s(b)(3)(A). A proposed rule change 

may take effect upon filing with the Commission if 

it is designated by the exchange as ‘‘establishing or 

changing a due, fee, or other charge imposed by the 

self-regulatory organization on any person, whether 

or not the person is a member of the self-regulatory 

organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii). 

5See Securities Exchange Act Release No. 92366 

(July 9, 2021), 86 FR 37379 (‘‘Notice’’). 

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

7See Notice, supra note 5, at 37379–80. 

Commission finds that the proposed 

changes to Form CMA conform to the 

recently amended MAP rules.37 The 

Commission therefore finds that the 

proposed rule change is consistent with 

the goals set forth by the Commission 

when it approved amendments to the 

MAP rules as described in File No. SR– 

FINRA–2020–011, which become 

effective on September 1, 2021.38 The 

Commission finds that waiving the 30- 

day operative delay would facilitate 

firm compliance with the amended 

MAP rules on the date they become 

effective.39 Therefore, the Commission 

believes it is consistent with the 

protection of investors and the public 

interest to waive the 30-day operative 

delay requirement. Therefore the 

Commission designates the proposed 

rule change as operative on September 

1, 2021. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rulecomments@sec.gov. Please include File 

Number SR–FINRA–2021–020 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–FINRA–2021–020. 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 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2021–020 and 

should be submitted on or before 

August 23, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.40

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2021–18945 Filed 9–1–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92797; File No. SR– 

PEARL–2021–32] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Suspension of and Order 

Instituting Proceedings To Determine 

Whether To Approve or Disapprove 

Proposed Rule Changes To Amend the 

MIAX Pearl Options Fee Schedule To 

Remove Certain Credits and Increase 

Trading Permit Fees 

August 27, 2021. 

I. Introduction 

On July 1, 2021, MIAX PEARL, LLC 

(‘‘MIAX Pearl’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Exchange Act’’ 

or ‘‘Act’’),1 and Rule 19b–4 thereunder,2

a proposed rule change (File Number 

SR–PEARL–2021–32) to amend the 

MIAX Pearl Options Fee Schedule (‘‘Fee 

Schedule’’) to remove certain credits 

and increase monthly Trading Permit 

fees for Exchange Members.3 The 

proposed rule change was immediately 

effective upon filing with the 

Commission pursuant to Section 

19(b)(3)(A) of the Act.4 The proposed 

rule change was published for comment 

in the Federal Register on July 15, 

2021.5 The Commission has received no 

comment letters on the proposed rule 

change. Under Section 19(b)(3)(C) of the 

Act,6 the Commission is hereby: (i) 

Temporarily suspending File Number 

SR–PEARL–2021–32; and (ii) instituting 

proceedings to determine whether to 

approve or disapprove File Number SR– 

PEARL–2021–32. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to amend its 

Fee Schedule to: (1) Delete the 

definition of and remove the credits 

applicable to the Monthly Volume 

Credit for Members; (2) and; (3) amend 

Section (3)(b) of the Fee Schedule to 

increase the amount of monthly Trading 

Permit Fees. 

Remove ‘‘Monthly Volume Credit’’ 

The Exchange proposes to amend the 

Definitions section of its Fee Schedule 

to delete the definition of ‘‘Monthly 

Volume Credit’’ and remove the credits 

applicable to the Monthly Volume 

Credit for Members.7 The Exchange 

states that the Monthly Volume Credit 

was established in 2018 to encourage 

Members to send increased Priority 


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8 ‘‘Priority Customer’’ means a person or entity 

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

(ii) does not place more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial accounts(s). The number of 

orders shall be counted in accordance with 

Interpretation and Policy .01 of Exchange Rule 100. 

See Notice, supra note 5, at 37380 n.6. 

9 ‘‘Affiliate’’ means (i) an affiliate of a Member of 

at least 75% common ownership between the firms 

as reflected on each firm’s Form BD, Schedule A, 

or (ii) the Appointed Market Maker of an Appointed 

EEM (or, conversely, the Appointed EEM of an 

Appointed Market Maker). See Notice, supra note 

5, at 37380 n.9. 

10 ‘‘Excluded Contracts’’ means any contracts 

routed to an away market for execution. See Notice, 

supra note 5, at 37380 n.10. 

11 ‘‘TCV’’ means total consolidated volume 

calculated as the total national volume in those 

classes listed on MIAX Pearl for the month for 

which the fees apply, excluding consolidated 

volume executed during the period of time in 

which the Exchange experiences an Exchange 

System Disruption (solely in the option classes of 

the affected Matching Engine). See Notice, supra 

note 5, at 37380 n.11. 

12The ‘‘FIX Interface’’ and ‘‘MEO Interface’’ are 

different interfaces for certain order types as set 

forth in Exchange Rule 516. See Notice, supra note 

5, at 37380 n.7–8. 

13See Notice, supra note 5, at 37380. 

14See Notice, supra note 5, at 37380–81. 

15See Notice, supra note 5, at 37380. 

16 15 U.S.C. 78s(b)(3)(C). 

17 15 U.S.C. 78s(b)(1). 

18See Notice, supra note 5, at 37387; see also id. 

at 37382. 19See Notice, supra note 5, at 37382. 20See Notice, supra note 5, at 37387. 21See Notice, supra note 5, at 37381–86. 22See Notice, supra note 5, at 37382. In addition, 

the Exchange notes that the expenses discussed 

within their filing only cover the MIAX Pearl 

options market; expenses associated with the MIAX 

Pearl equities market are accounted for separately 

and are not included within the scope of this filing. 

See id. at 37384. 

Customer 8 order flow to the Exchange. 

The Monthly Volume Credit is provided 

to Members whose executed Priority 

Customer volume along with that of its 

Affiliates,9 not including Excluded 

Contracts,10 is at least 0.30% of 

Exchange-listed Total Consolidated 

Volume (‘‘TCV’’) 11 and is $250 for 

Members that connect via the FIX 

Interface and $1,000 for Members that 

connect via the MEO Interface (or both 

interfaces).12 The Monthly Volume 

Credit is a single once-per-month credit 

towards the aggregate monthly total of 

non-transaction fees assessable to a 

Member. 

Remove Trading Permit Fee Credit 

The Exchange also proposes to amend 

Section (3)(b) of the Fee Schedule to 

remove a Trading Permit fee credit of 

$100 that is provided to Members who 

connect via both the MEO and FIX 

Interfaces and is a monthly credit 

towards the Trading Permit fees 

applicable to the MEO Interface use.13

Increase Monthly Trading Permit Fees 

The Exchange also proposes to amend 

Section (3)(b) of the Fee Schedule to 

increase the amount of the monthly 

Trading Permit fees that are charged to 

Exchange Members that are Electronic 

Exchange Members or Market Makers.14

These fees are assessed in a tier-based 

fee structure based on the monthly total 

volume executed by a Member and its 

Affiliates on the Exchange across all 

origin types, not including Excluded 

Contracts, as compared to all Exchangelisted options and are also assessed 

based upon the type of interface used by 

the Member to connect to the Exchange, 

specifically the FIX Interface and/or the 

MEO Interface.15

The Exchange proposes to increase 

fees for Trading Permits as follows: 

For Members that connect via the FIX 

Interface, if the Member’s relevant 

monthly volume falls within the 

parameters of: 

• Tier 1 (up to 0.30% TCV): The 

monthly fee would increase from $250 

to $500; 

• Tier 2 (above 0.30%, up to 0.60% 

TCV): The monthly fee would increase 

from $350 to $1,000; and 

• Tier 3 (above 0.60% TCV): The 

monthly fee would increase from $450 

to $1,500. 

For Members that connect via the 

MEO interface, if the Member’s relevant 

monthly volume falls within the 

parameters of: 

• Tier 1 (up to 0.30% TCV): The 

monthly fee would increase from $300 

to $2,500; 

• Tier 2 (above 0.30%, up to 0.60% 

TCV): The monthly fee would increase 

from $400 to $4,000; and 

• Tier 3 (above 0.60% TCV): The 

monthly fee would increase from $500 

to $6,000. 

III. Suspension of the Proposed Rule 

Change 

Pursuant to Section 19(b)(3)(C) of the 

Act,16 at any time within 60 days of the 

date of filing of an immediately effective 

proposed rule change pursuant to 

Section 19(b)(1) of the Act,17 the 

Commission summarily may 

temporarily suspend the change in the 

rules of a self-regulatory organization 

(‘‘SRO’’) 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. As discussed below, the 

Commission believes a temporary 

suspension of the proposed rule change 

is necessary and appropriate to allow for 

additional analysis of the proposed rule 

change’s consistency with the Act and 

the rules thereunder. 

In support of the proposed fee 

changes, the Exchange principally 

argues that these fees are constrained by 

competitive forces, and that this is 

supported by their revenue and cost 

analysis. In particular, the Exchange 

states that it operates in a ‘‘highly 

competitive market’’ in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive.18 In 

further support of its argument that 

competitive forces constrain its 

proposed fee changes, Exchange further 

states that if it were to attempt to 

establish unreasonable pricing, then no 

market participant would join or 

connect, and existing market 

participants would disconnect.19 In 

addition, the Exchange states that it is 

not aware of any reason why market 

participants could not simply drop their 

access to an exchange (or not initially 

access an exchange) if an exchange were 

to establish prices for its nontransaction fees that, in the 

determination of such market 

participant, did not make business or 

economic sense for such market 

participant to access such exchange, and 

claims that no options market 

participant is required by rule, 

regulation, or competitive forces to be a 

Member of the Exchange, which the 

Exchange believes is illustrated by the 

fact that it is unaware of any one 

options exchange whose membership 

includes every registered brokerdealer.20

The Exchange also states that these 

fees are designed to recover a portion of 

the costs associated with directly 

accessing the Exchange. The Exchange 

believes that Trading Permits are a 

means to directly access the Exchange 

and thus offers meaningful value (and 

without a Trading Permit a Member 

cannot directly trade on the Exchange). 

The Exchange provides an analysis of its 

revenues, costs, and profitability 

associated with these fees, which it 

references as ‘‘Proposed Access Fees.’’ 21

The Exchange states that this analysis 

reflects an extensive cost review in 

which the Exchange analyzed every 

expense item in the Exchange’s general 

expense ledger to determine whether 

each such expense relates to the 

Proposed Access Fees, and, if such 

expense did so relate, what portion (or 

percentage) of such expense actually 

supports the access services.22 The 

Exchange states that this analysis shows 

that the Proposed Access Fees will not 

result in excessive pricing or supracompetitive profit when compared to 

the Exchange’s annual expense 

associated with providing the services 


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23See Notice, supra note 5, at 37382, 37386. 

24See Notice, supra note 5, at 37383–84. 

25See Notice, supra note 5, at 37384–85. 

26See Notice, supra note 5, at 37385–86. 

27See Notice, supra note 5, at 37386. 

28See Notice, supra note 5, at 37386. The 

Exchange states that Nasdaq ISE, LLC’s operating 

profit margin for 2019 was 83% and Nasdaq PHLX 

LLC’s operating profit margin for 2019 was 67%. 

29See Notice, supra note 5, at 37387. The 

Exchange cites fees from NYSE Arca, NYSE 

American, and CBOE BZX Options Exchange in 

support of this statement. See id. at 37381 n.18. For 

a more detailed description of the Exchange’s 

justifications for the proposed rule change, see 

Notice, supra note 5, at 37381–88. 

30See Notice, supra note 5, at 37386. 

31See Notice, supra note 5, at 37382–83. 

32See Notice, supra note 5, at 37382–83. 

33See id. at 37387. 

34See Notice, supra note 5, at 37381. 

35For a more detailed description of the 

Exchange’s justifications for the proposed rule 

change, see Notice, supra note 5, at 37381–88. 

36See 17 CFR 240.19b–4 (Item 3 entitled ‘‘SelfRegulatory Organization’s Statement of the Purpose 

of, and Statutory Basis for, the Proposed Rule 

Change’’). 

37 Id. 

38 15 U.S.C. 78f(b)(4). 

associated with the Proposed Access 

Fees versus the annual revenue the 

Exchange will collect for providing 

those services.23

The Exchange states that for 2021, the 

total annual expense for providing the 

access services associated with the 

Proposed Access Fees for the Exchange 

is projected to be approximately 

$844,741.24 The $844,741 in projected 

total annual expense is comprised of the 

following, all of which the Exchange 

states are directly related to the access 

services associated with the Proposed 

Access Fees: (1) Third-party expense, 

relating to fees paid by the Exchange to 

third-parties for certain products and 

services; and (2) internal expense, 

relating to the internal costs of the 

Exchange to provide the services 

associated with the Proposed Access 

Fees. The Exchange states that the 

$844,741 in projected total annual 

expense is directly related to the access 

services associated with the Proposed 

Access Fees, and not any other product 

or service offered by the Exchange. 

The Exchange states that the total 

third-party expense, relating to fees paid 

by the Exchange to third-parties for 

certain products and services for the 

Exchange to be able to provide the 

access services associated with the 

Proposed Access Fees is projected to be 

$188,815 for 2021.25 The Exchange 

represents that it determined whether 

third-party expenses related to the 

access services associated with the 

Proposed Access Fees, and, if such 

expense did so relate, determined what 

portion (or percentage) of such expense 

represents the cost to the Exchange to 

provide access services associated with 

the Proposed Access Fees. This includes 

allocating a portion of fees paid to: (1) 

Equinix, for data center services 

(approximately 8% of the Exchange’s 

total applicable Equinix expense); (2) 

Zayo Group Holdings, Inc. for network 

services (approximately 4%); (3) Secure 

Financial Transaction Infrastructure and 

various other services providers 

(approximately 3%); and (4) various 

other hardware and software providers 

(approximately 5%). 

In addition, the Exchange states that 

the total internal expense, relating to the 

internal costs of the Exchange to 

provide the access services associated 

with the Proposed Access Fees, is 

projected to be $655,925 for 2021.26 The 

Exchange represents that: (1) The 

Exchange’s employee compensation and 

benefits expense relating to providing 

the access services associated with the 

Proposed Access Fees is projected to be 

$549,824, which is a portion of the 

Exchange’s total projected expense of 

$9,163,894 for employee compensation 

and benefits (approximately 6%); (2) the 

Exchange’s depreciation and 

amortization expense relating to 

providing the access services associated 

with the Proposed Access Fees is 

projected to be $66,316, which is a 

portion of the Exchange’s total projected 

expense of $1,326,325 for depreciation 

and amortization (approximately 5%); 

and (3) the Exchange’s occupancy 

expense relating to providing the access 

services associated with the Proposed 

Access Fees is projected to be $39,775, 

which is a portion of the Exchange’s 

total projected expense of $497,180 for 

occupancy (approximately 8%). 

The Exchange states that this cost and 

revenue analysis shows that the 

proposed rule change will not result in 

excessive pricing or supra-competitive 

profit.27 The Exchange projects that, on 

a fully-annualized basis, the Proposed 

Access Fees will have an expense of 

$844,741 per year and a projected 

revenue of $1,170,000 per year, 

resulting in a projected profit margin of 

28% ($1,170,000 in projected revenue 

minus $844,741 in projected expense = 

$325,259 profit per year). The Exchange 

states that this estimated profit margin 

is well below the operating profit 

margins of other competing exchanges 

based on financial statements provided 

by them in Form 1 filings.28 The 

Exchange also claims that the Trading 

Permit fees are reasonable and equitable 

because ‘‘they are in line with, or 

cheaper than, the trading permit fees or 

similar membership fees charged by 

other options exchanges.’’ 29

The Exchange further states that its 

proposed fees are reasonable, equitably 

allocated and not unfairly 

discriminatory because the Exchange, 

and its affiliates, Miami International 

Securities Exchange, LLC and MIAX 

Emerald, LLC, are still recouping the 

initial expenditures from building out 

their systems while the ‘‘legacy’’ 

exchanges have already paid for and 

built their systems.30 The Exchange also 

believes that removal of the Monthly 

Volume Credit and Trading Permit fee 

credit is reasonable, equitable and not 

unfairly discriminatory because all 

market participants will no longer be 

offered the ability to receive the credit 

and access to the Exchange is offered on 

terms that are not unfairly 

discriminatory.31 In addition, the 

Exchange states that these credits were 

offered in order to attract order flow and 

membership after the Exchange first 

launched operations, and it is now 

appropriate to remove these credits in 

light of the current operating conditions 

of the Exchange.32

The Exchange states that the proposed 

fees are equitably allocated, not unfairly 

discriminatory, and do not impose an 

unnecessary or inappropriate burden on 

competition because the Proposed 

Access Fees do not favor certain 

categories of market participants,33 the 

difference in Trading Permit fees for FIX 

versus MEO Interface users reflects the 

fact FIX Interface utilizes less capacity 

and resources of the Exchange while the 

MEO Interface offers lower latency and 

higher throughput, which utilizes 

greater capacity and resources of the 

Exchange; 34 and options market 

participants are not forced to connect to 

(and purchase Trading Permits) all 

options exchanges.35

When exchanges file their proposed 

rule changes with the Commission, 

including fee filings like the Exchange’s 

present proposal, they are required to 

provide a statement supporting the 

proposal’s basis under the Act and the 

rules and regulations thereunder 

applicable to the exchange.36 The 

instructions to Form 19b–4, on which 

exchanges file their proposed rule 

changes, specify that such statement 

‘‘should be sufficiently detailed and 

specific to support a finding that the 

proposed rule change is consistent with 

[those] requirements.’’ 37

Section 6 of the Act, including 

Sections 6(b)(4), (5), and (8), require the 

rules of an exchange to (1) provide for 

the equitable allocation of reasonable 

fees among members, issuers, and other 

persons using the exchange’s 

facilities; 38 (2) perfect the mechanism of 

a free and open market and a national 


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39 15 U.S.C. 78f(b)(5). 

40 15 U.S.C. 78f(b)(8). 

41See 15 U.S.C. 78f(b)(4), (5), and (8), 

respectively. 

42For purposes of temporarily suspending the 

proposed rule change, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

43 15 U.S.C. 78s(b)(3)(C). Once the Commission 

temporarily suspends a proposed rule change, 

Section 19(b)(3)(C) of the Act requires that the 

Commission institute proceedings under Section 

19(b)(2)(B) to determine whether a proposed rule 

change should be approved or disapproved. 

44 15 U.S.C. 78s(b)(2)(B). 

45 15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the 

Act also provides that proceedings to determine 

whether to disapprove a proposed rule change must 

be concluded within 180 days of the date of 

publication of notice of the filing of the proposed 

rule change. See id. The time for conclusion of the 

proceedings may be extended for up to 60 days if 

the Commission finds good cause for such 

extension and publishes its reasons for so finding, 

or if the exchange consents to the longer period. See 

id. 

46 15 U.S.C. 78f(b)(4). 

47 15 U.S.C. 78f(b)(5). 

48 15 U.S.C. 78f(b)(8). 

49 17 CFR 201.700(b)(3). 

50See id. 

51See id. 

52See 15 U.S.C. 78f(b)(4), (5), and (8). 

53 15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act 

grants the Commission flexibility to determine what 

type of proceeding—either oral or notice and 

opportunity for written comments—is appropriate 

for consideration of a particular proposal by an 

SRO. See Securities Acts Amendments of 1975, 

Report of the Senate Committee on Banking, 

Housing and Urban Affairs to Accompany S. 249, 

S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). 

market system, protect investors and the 

public interest, and not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or 

dealers; 39 and (3) not impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act.40

In temporarily suspending the 

Exchange’s fee change, the Commission 

intends to further consider whether the 

proposed rule change is consistent with 

the statutory requirements applicable to 

a national securities exchange under the 

Act. In particular, the Commission will 

consider whether the proposed rule 

change satisfies the standards under the 

Act and the rules thereunder requiring, 

among other things, that an exchange’s 

rules provide for the equitable 

allocation of reasonable fees among 

members, issuers, and other persons 

using its facilities; not permit unfair 

discrimination between customers, 

issuers, brokers or dealers; and do not 

impose any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act.41

Therefore, the Commission finds that 

it is appropriate in the public interest, 

for the protection of investors, and 

otherwise in furtherance of the purposes 

of the Act, to temporarily suspend the 

proposed rule change.42

IV. Proceedings To Determine Whether 

To Approve or Disapprove the 

Proposed Rule Change 

In addition to temporarily suspending 

the proposal, the Commission also 

hereby institutes proceedings pursuant 

to Sections 19(b)(3)(C) 43 and 19(b)(2)(B) 

of the Act 44 to determine whether the 

proposed rule change should be 

approved or disapproved. Institution of 

proceedings does not indicate that the 

Commission has reached any 

conclusions with respect to any of the 

issues involved. Rather, the Commission 

seeks and encourages interested persons 

to provide additional comment on the 

proposed rule change to inform the 

Commission’s analysis of whether to 

approve or disapprove the proposed 

rule change. 

Pursuant to Section 19(b)(2)(B) of the 

Act,45 the Commission is providing 

notice of the grounds for possible 

disapproval under consideration: 

• Whether the Exchange has 

demonstrated how the proposal is 

consistent with Section 6(b)(4) of the 

Act, which requires that the rules of a 

national securities exchange ‘‘provide 

for the equitable allocation of reasonable 

dues, fees, and other charges among its 

members and issuers and other persons 

using its facilities;’’ 46

• Whether the Exchange has 

demonstrated how the proposal is 

consistent with Section 6(b)(5) of the 

Act, which requires, among other 

things, that the rules of a national 

securities exchange be ‘‘designed to 

perfect the operation of a free and open 

market and a national market system’’ 

and ‘‘protect investors and the public 

interest,’’ and not be ‘‘designed to 

permit unfair discrimination between 

customers, issuers, brokers, or 

dealers;’’ 47 and 

• Whether the Exchange has 

demonstrated how the proposal is 

consistent with Section 6(b)(8) of the 

Act, which requires that the rules of a 

national securities exchange ‘‘not 

impose any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of [the Act].’’ 48

As discussed in Section III above, the 

Exchange makes various arguments in 

support of the proposal. The 

Commission believes that there are 

questions as to whether the Exchange 

has provided sufficient information to 

demonstrate that the proposal to remove 

certain credits and increase monthly 

Trading Permit fees is consistent with 

the Act and the rules thereunder. 

Under the Commission’s Rules of 

Practice, the ‘‘burden to demonstrate 

that a proposed rule change is 

consistent with the [Act] and the rules 

and regulations issued thereunder . . . 

is on the [SRO] that proposed the rule 

change.’’ 49 The description of a 

proposed rule change, its purpose and 

operation, its effect, and a legal analysis 

of its consistency with applicable 

requirements must all be sufficiently 

detailed and specific to support an 

affirmative Commission finding,50 and 

any failure of an SRO to provide this 

information may result in the 

Commission not having a sufficient 

basis to make an affirmative finding that 

a proposed rule change is consistent 

with the Act and the applicable rules 

and regulations.51

The Commission is instituting 

proceedings to allow for additional 

consideration and comment on the 

issues raised herein, including as to 

whether the proposal is consistent with 

the Act, specifically, with its 

requirements that the rules of a national 

securities exchange provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members, issuers, and other persons 

using its facilities; are designed to 

perfect the operation of a free and open 

market and a national market system, 

and to protect investors and the public 

interest; are not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers; 

and do not impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act; 52 as well as any 

other provision of the Act, or the rules 

and regulations thereunder. 

V. Commission’s Solicitation of 

Comments 

The Commission requests written 

views, data, and arguments with respect 

to the concerns identified above as well 

as any other relevant concerns. Such 

comments should be submitted by 

September 23, 2021. Rebuttal comments 

should be submitted by October 7, 2021. 

Although there do not appear to be any 

issues relevant to approval or 

disapproval that would be facilitated by 

an oral presentation of views, data, and 

arguments, the Commission will 

consider, pursuant to Rule 19b–4, any 

request for an opportunity to make an 

oral presentation.53

The Commission asks that 

commenters address the sufficiency and 

merit of the Exchange’s statements in 

support of the proposal, in addition to 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices 49403 

54 15 U.S.C. 78s(b)(3)(C). 

55 17 CFR 200.30–3(a)(57) and (58). 

any other comments they may wish to 

submit about the proposed rule change. 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the proposed rule 

change, including whether the proposal 

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 No. SR– 

PEARL–2021–32 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–PEARL–2021–32. 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–PEARL–2021–32 and 

should be submitted on or before 

September 23, 2021. Rebuttal comments 

should be submitted by October 7, 2021. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(3)(C) of the Act,54 that File 

Number SR–PEARL–2021–32 be and 

hereby is, temporarily suspended. In 

addition, the Commission is instituting 

proceedings to determine whether the 

proposed rule change should be 

approved or disapproved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.55

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2021–18948 Filed 9–1–21; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No: SSA–2021–0034] 

Agency Information Collection 

Activities: Proposed Request and 

Comment Request 

The Social Security Administration 

(SSA) publishes a list of information 

collection packages requiring clearance 

by the Office of Management and 

Budget (OMB) in compliance with 

Public Law 104–13, the Paperwork 

Reduction Act of 1995, effective October 

1, 1995. This notice includes an 

extension and revisions of OMBapproved information collections. 

SSA is soliciting comments on the 

accuracy of the agency’s burden 

estimate; the need for the information; 

its practical utility; ways to enhance its 

quality, utility, and clarity; and ways to 

minimize burden on respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. Mail, email, or 

fax your comments and 

recommendations on the information 

collection(s) to the OMB Desk Officer 

and SSA Reports Clearance Officer at 

the following addresses or fax numbers. 

(OMB) Office of Management and 

Budget, Attn: Desk Officer for SSA 

Comments: https://www.reginfo.gov/ 

public/do/PRAMain. Submit your 

comments online referencing Docket ID 

Number [SSA–2021–0034]. 

(SSA) Social Security Administration, 

OLCA, Attn: Reports Clearance 

Director, 3100 West High Rise, 6401 

Security Blvd., Baltimore, MD 21235, 

Fax: 410–966–2830, Email address: 

OR.Reports.Clearance@ssa.gov 

Or you may submit your comments 

online through https://www.reginfo.gov/ 

public/do/PRAMain, referencing Docket 

ID Number [SSA–2021–0034]. 

I. The information collection below is 

pending at SSA. SSA will submit it to 

OMB within 60 days from the date of 

this notice. To be sure we consider your 

comments, we must receive them no 

later than November 1, 2021. 

Individuals can obtain copies of the 

collection instrument by writing to the 

above email address. 

Registration for Appointed 

Representative Services and Direct 

Payment—0960–0732. SSA uses Form 

SSA–1699 to register appointed 

representatives of claimants before SSA 

who: 

• Want to register for direct payment 

of fees; 

• Registered for direct payment of 

fees prior to 10/31/09, but need to 

update their information; 

• Registered as appointed 

representatives on or after 10/31/09, but 

need to update their information; or 

• Received a notice from SSA 

instructing them to complete this form. 

By registering these individuals, SSA: 

(1) Authenticates and authorizes them 

to do business with us; (2) allows them 

to access our records for the claimants 

they represent; (3) facilitates direct 

payment of authorized fees to appointed 

representatives; and, (4) collects the 

information we need to meet Internal 

Revenue Service (IRS) requirements to 

issue specific IRS forms if we pay an 

appointed representative in excess of a 

specific amount ($600). The 

respondents are appointed 

representatives who want to use Form 

SSA–1699 for any of the purposes cited 

in this Notice. 

Type of Request: Revision of an OMBapproved information collection. 


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