Federal Register / Vol. 87, No. 69 / Monday, April 11, 2022 / Notices 21225 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4 If the Exchange seeks to provide additional 

temporary relief from the rule requirements 

identified in this proposed rule change beyond July 

31, 2022, the Exchange will submit a separate rule 

filing to further extend the temporary extension of 

time. The amended Exchange rules will revert to 

their original form at the conclusion of the 

temporary relief period and any extension thereof. 

5See Securities Exchange Act Release No. 93852 

(December 22, 2021), 86 FR 74201 (December 29, 

2021) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2021–104). 

6For example, on February 18, 2022, President 

Joe Biden continued the national emergency 

concerning COVID–19 beyond March 1, 2022, 

because COVID–19 ‘‘continues to cause significant 

risk to the public health and safety’’ of the United 

States. See Continuation of the National Emergency 

Concerning the Coronavirus Disease 2019 (COVID– 

19) Pandemic, 87 FR 10289 (February 23, 2022). 

7For instance, the Centers for Disease Control 

(‘‘CDC’’) recommends that people wear a mask in 

public indoor settings in areas with a high COVID– 

19 community level regardless of vaccination status 

or individual risk. See https://www.cdc.gov/ 

coronavirus/2019-ncov/prevent-getting-sick/aboutface-coverings.html. Furthermore, numerous states 

currently have COVID–19 restrictions in place. 

Hawaii requires most people to wear masks in 

indoor public places regardless of vaccination 

status and several other states have mask mandates 

in certain settings, such as healthcare and 

correctional facilities. 

8For OHO hearings under Exchange Rules 9261 

and 9830, the proposed rule change temporarily 

grants authority to the Chief or Deputy Chief 

Hearing Officer to order that a hearing be conducted 

by video conference. For ERC hearings under 

Exchange Rules 1015 and 9524, this temporary 

authority is granted to the ERC or relevant 

Subcommittee. 

9See Securities Exchange Act Release No. 90390 

(November 10, 2020), 85 FR 73302 (November 17, 

2020) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2020–076); see also 

Securities Exchange Act Release No. 90774 

(December 22, 2020), 85 FR 86614 (December 30, 

2020) (Notice of Filing and Immediate Effectiveness 

of File No. SR–NASDAQ–2020–092); Securities 

Exchange Act Release No. 91763 (May 4, 2021), 86 

FR 25055 (May 10, 2021) (Notice of Filing and 

Immediate Effectiveness of File No. SR–NASDAQ– 

2021–033); Securities Exchange Act Release No. 

92911 (September 9, 2021), 86 FR 51395 (September 

15, 2021) (Notice of Filing and Immediate 

Effectiveness of File No. SR–NASDAQ–2021–067); 

supra note 5. 

10As noted in SR–NASDAQ–2020–076, the 

temporary proposed rule change grants discretion to 

OHO and the ERC to order a video conference 

hearing. In deciding whether to schedule a hearing 

by video conference, OHO and the ERC may 

consider a variety of other factors in addition to 

COVID–19 trends. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94610; File No. SR– 

NASDAQ–2022–028] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Expiration Date of the Temporary 

Amendments Concerning Video 

Conference Hearings 

April 5, 2022. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on March 23, 

2022, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by the Exchange. The 

Exchange has designated the proposed 

rule change as constituting a ‘‘noncontroversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 under the 

Act,3 which renders the proposal 

effective upon receipt of this filing by 

the Commission. 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 extend the 

expiration date of the temporary 

amendments in SR–NASDAQ–2020–076 

from March 31, 2022, to July 31, 2022.4

The proposed rule change would not 

make any changes to the text of the 

Exchange rules. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/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 continue to 

harmonize Exchange Rules 1015, 9261, 

9524 and 9830 with recent changes by 

the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) to its Rules 

1015, 9261, 9524 and 9830 in response 

to the COVID–19 global health crisis 

and the corresponding need to restrict 

in-person activities. The Exchange 

originally filed proposed rule change 

SR–NASDAQ–2020–076, which allows 

the Exchange’s Office of Hearing 

Officers (‘‘OHO’’) and the Exchange 

Review Council (‘‘ERC’’) to conduct 

hearings, on a temporary basis, by video 

conference, if warranted by the current 

COVID–19-related public health risks 

posed by an in-person hearing. In 

December 2021, the Exchange filed a 

proposed rule change, SR–NASDAQ– 

2021–104, to extend the expiration date 

of the temporary amendments in SRNASDAQ–2020–076 from December 31, 

2021, to March 31, 2022.5

While there are material signs of 

improvement, uncertainty still remains 

for the coming months. The continued 

presence of COVID–19 variants, 

dissimilar vaccination rates throughout 

the United States, and the current 

medium to high COVID–19 community 

levels in many states indicate that 

COVID–19 remains an active and real 

public health concern.6 Due to the 

uncertainty and the lack of a clear 

timeframe for a sustained and 

widespread abatement of COVID–19- 

related health concerns and 

corresponding restrictions,7 the 

Exchange believes that there is a 

continued need for temporary relief 

beyond March 31, 2022. Accordingly, 

the Exchange proposes to extend the 

expiration date of the temporary rule 

amendments in SR–NASDAQ–2020–076 

from March 31, 2022, to July 31, 2022. 

On November 5, 2020, the Exchange 

filed, and subsequently extended to 

March 31, 2022, SR–NASDAQ–2020– 

076, to temporarily amend Exchange 

Rules 1015, 9261, 9524 and 9830 to 

grant OHO and the ERC authority 8 to 

conduct hearings in connection with 

appeals of Membership Application 

Program decisions, disciplinary actions, 

eligibility proceedings and temporary 

and permanent cease and desist orders 

by video conference, if warranted by the 

COVID–19-related public health risks 

posed by an in-person hearing.9

As set forth in the previous filings, the 

Exchange also relies on COVID–19 data 

and the guidance issued by public 

health authorities to determine whether 

the current public health risks presented 

by an in-person hearing may warrant a 

hearing by video conference.10 Based on 

that data and guidance, the Exchange 

does not believe the COVID–19-related 

health concerns necessitating this relief 

will meaningfully subside by March 31, 

2022, and believes that there will be a 

continued need for this temporary relief 


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21226 Federal Register / Vol. 87, No. 69 / Monday, April 11, 2022 / Notices 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13See Securities Exchange Act Release No. 94430 

(March 16, 2022), 87 FR 16262 (March 22, 2022) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2022–004). 

14 15 U.S.C. 78s(b)(3)(A)(iii). 

15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6)(iii). 

18See supra Item II. 

19See Securities Exchange Act Release No. 94430 

(March 16, 2022); 86 FR 16262, 16264 (March 16, 

2022) (noting the same in granting FINRA’s request 

to waive the 30-day operative delay so that SR– 

FINRA–2022–004 would become operative 

immediately upon filing). 

20See supra note 9. 

beyond that date. Accordingly, the 

Exchange proposes to extend the 

expiration date of the temporary rule 

amendments originally set forth in SR– 

NASDAQ–2020–076 from March 31, 

2022, to July 31, 2022. The extension of 

these temporary amendments allowing 

for specified OHO and ERC hearings to 

proceed by video conference will allow 

the Exchange’s critical adjudicatory 

functions to continue to operate 

effectively in these extraordinary 

circumstances—enabling the Exchange 

to fulfill its statutory obligations to 

protect investors and maintain fair and 

orderly markets—while also protecting 

the health and safety of hearing 

participants. 

The Exchange has filed the proposed 

rule change for immediate effectiveness 

and has requested that the SEC waive 

the requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, so the 

Exchange can implement the proposed 

rule change immediately. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,12

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

continuing to provide greater 

harmonization between the Exchange 

rules and FINRA rules of similar 

purpose,13 resulting in less burdensome 

and more efficient regulatory 

compliance. 

The proposed rule change, which 

extends the expiration date of the 

temporary amendments to the Exchange 

rules set forth in SR–NASDAQ–2020– 

076, will continue to aid the Exchange’s 

efforts to timely conduct hearings in 

connection with its core adjudicatory 

functions. Given the current and 

frequently changing COVID–19 

conditions and the uncertainty around 

when those conditions will see 

meaningful, widespread, and sustained 

improvement, without this relief 

allowing OHO and ERC hearings to 

proceed by video conference, the 

Exchange might be required to postpone 

some or almost all hearings indefinitely. 

The Exchange must be able to perform 

its critical adjudicatory functions to 

fulfill its statutory obligations to protect 

investors and maintain fair and orderly 

markets. As such, this relief is essential 

to the Exchange’s ability to fulfill its 

statutory obligations and allows hearing 

participants to avoid the serious 

COVID–19-related health and safety 

risks associated with in-person hearings. 

Among other things, this relief will 

allow OHO to conduct temporary cease 

and desist proceedings by video 

conference so that the Exchange can 

take immediate action to stop ongoing 

customer harm and will allow the ERC 

to timely provide members, disqualified 

individuals and other applicants an 

approval or denial of their applications. 

As set forth in detail in SR–NASDAQ– 

2020–076, this temporary relief allowing 

OHO and ERC hearings to proceed by 

video conference accounts for fair 

process considerations and will 

continue to provide fair process while 

avoiding the COVID–19-related public 

health risks for hearing participants. 

Accordingly, the proposed rule change 

extending this temporary relief is in the 

public interest and consistent with the 

Act’s purpose. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the temporary proposed rule change 

will impose any burden on competition 

not necessary or appropriate in 

furtherance of the purposes of the Act. 

As set forth in SR–NASDAQ–2020–076, 

the proposed rule change is intended 

solely to extend temporary relief 

necessitated by the continued impacts 

of the COVID–19 outbreak and the 

related health and safety risks of 

conducting in-person activities. The 

Exchange believes that the proposed 

rule change will prevent unnecessary 

impediments to its operations, 

including its critical adjudicatory 

processes, and its ability to fulfill its 

statutory obligations to protect investors 

and maintain fair and orderly markets 

that would otherwise result if the 

temporary amendments were to expire 

on March 31, 2022. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 14 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.15

A proposed rule change filed under 

Rule 19b–4(f)(6) 16 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),17 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange has indicated that 

the proposed rule change to extend the 

expiration date will continue to prevent 

unnecessary impediments to its 

operations, including its critical 

adjudicatory processes, and its ability to 

fulfill its statutory obligations to protect 

investors and maintain fair and orderly 

markets that would otherwise result if 

the temporary amendments were to 

expire on March 31, 2022.18

Importantly, extending the temporary 

relief provided in SR–NASDAQ–2020– 

076 immediately upon filing and 

without a 30-day operative delay will 

allow the Exchange to continue critical 

adjudicatory and review processes in a 

reasonable and fair manner and meet its 

critical investor protection goals, while 

also following best practices with 

respect to the health and safety of its 

employees.19 The Commission also 

notes that this proposal extends without 

change the temporary relief previously 

provided by SR–NASDAQ–2020–076.20

As proposed, the temporary changes 

would be in place through July 31, 2022 

and the amended rules will revert back 

to their original state at the conclusion 

of the temporary relief period and, if 


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Federal Register / Vol. 87, No. 69 / Monday, April 11, 2022 / Notices 21227 

21See supra note 4. As noted above, the Exchange 

states that if it requires temporary relief from the 

rule requirements identified in this proposal 

beyond July 31, 2022, it may submit a separate rule 

filing to extend the effectiveness of the temporary 

relief under these rules. 

22For 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. See 15 U.S.C. 

78c(f). 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Self-Regulatory Organizations; ICE Clear Europe 

Limited; Notice of Filing of Proposed Rule Change 

Relating to Amendments to the ICE Clear Europe 

CDS Clearing Stress Testing Policy and CDS 

Clearing Back-Testing Policy, Exchange Act Release 

No. 94280 (Feb. 18, 2022); 87 FR 10878 (Feb. 25, 

2022) (SR–ICEEU–2022–004) (‘‘Notice’’). 

applicable, any extension thereof.21 For 

these reasons, the Commission believes 

that waiver of the 30-day operative 

delay for this proposal is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative upon filing.22

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2022–028 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–NASDAQ–2022–028. 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2022–028 and should be 

submitted on or before May 2, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07625 Filed 4–8–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94607; File No. SR–ICEEU– 

2022–004] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Order Approving 

Proposed Rule Change Relating to 

Amendments to the ICE Clear Europe 

CDS Clearing Stress-Testing Policy 

and CDS Clearing Back-Testing Policy 

April 5, 2022. 

I. Introduction 

On February 10, 2022, ICE Clear 

Europe Limited (‘‘ICE Clear Europe’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (the ‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to amend its CDS Clearing BackTesting Policy (‘‘CDS Back-Testing 

Policy’’) and CDS Clearing StressTesting Policy (‘‘CDS Stress-Testing 

Policy’’). The proposed rule change was 

published for comment in the Federal 

Register on February 25, 2022.3 The 

Commission did not receive comments 

regarding the proposed rule change. For 

the reasons discussed below, the 

Commission is approving the proposed 

rule change. 

II. Description of the Proposed Rule 

Change 

The proposed rule change would 

amend the CDS Clearing Back-Testing 

Policy and CDS Clearing Stress-Testing 

Policy to remediate the findings of an 

independent validation. The discussion 

below describes the proposed 

amendments in the order they appear in 

each policy. 

i. CDS Back-Testing Policy 

The proposed rule change first would 

correct the capitalization of the title of 

Section 2.1. In that section, the 

proposed rule change also would correct 

a typographical error by replacing the 

word ‘‘follow’’ with ‘‘follows.’’ In 

addition to those typographical 

corrections, the proposed rule change 

would add new language at the end of 

the section. This new language would 

explain that ICE Clear Europe conducts 

several types of backtests and that ICE 

Clear Europe adopts all the available 

reliable and validated data for each 

backtest in order to assess the model 

performance over a long period, where 

stress market conditions and 

idiosyncratic events are likely to have 

manifested. 

Next, the proposed rule change would 

add a new Section 2.2 and re-number 

the remaining sections accordingly. 

New Section 2.2 would explain that ICE 

Clear Europe backtests the CDS risk 

model with overlapping data and nonoverlapping data. This section also 

would explain that ICE Clear Europe 

prefers to backtest with non-overlapping 

data for static portfolios. Because the 

CDS risk model covers a multi-days risk 

horizon, the lack of sufficiently long 

data sets limits ICE Clear Europe’s 

ability to use non-overlapping data, 

however. ICE Clear Europe would 

address this limitation by using 

overlapping data to make a statistically 

significant sample. 

This new Section 2.2, as well as the 

new language at the end of Section 2.1, 

would document ICE Clear Europe’s 

existing practice of backtesting using 

overlapping data and non-overlapping 

data, and, in doing so, using all the 

available reliable and validated data for 

each backtest in order to assess the 

model performance over a long period. 


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