21940 Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 82911 

(March 20, 2018), 83 FR 12966 (March 26, 2018) 

(SR–ISE–2017–106) (Approval Order). 

4See Securities Exchange Act Release Nos.86071 

(June 10, 2019), 84 FR 27822 (June 14, 2019) (SR– 

ISE–2019–18); 87379 (October 22, 2019), 84 FR 

57793 (October 28, 2019) (SR–ISE–2019–27); 88683 

(April 17, 2020), 85 FR 22768 (April 23, 2020) (SR– 

ISE–2020–18); 90257 (October 22, 2020), 85 FR 

68387 (October 28, 2020) (SR–ISE–2020–33); 91485 

(April 6, 2021), 86 FR 19052 (April 12, 2021) (SR– 

ISE–2021–05); and 93448 (October 28, 2021), 86 FR 

60717 (November 3, 2021) (SR–ISE–2021–22). 

5See Securities Exchange Act Release No. 82612 

(February 1, 2018), 83 FR 5470 (February 7, 2018) 

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–NYSENAT–2022–05 

and should be submitted on or before 

May 4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07844 Filed 4–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94632; File No. SR–ISE– 

2022–09] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend a Pilot To 

Permit the Listing and Trading of 

Options Based on 1⁄5 the Value of the 

Nasdaq-100 Index and the 

Nonstandard Expirations Pilot 

April 7, 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 31, 

2022, Nasdaq ISE, LLC (‘‘ISE’’ 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 extend the 

pilot to permit the listing and trading of 

options based on 1⁄5 the value of the 

Nasdaq-100 Index (‘‘Nasdaq-100’’) and 

the Exchange’s nonstandard expirations 

pilot program, both currently set to 

expire on May 4, 2022. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/ise/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 

ISE proposes to extend 2 pilots, which 

are both set to expire on May 4, 2022. 

The Exchange proposes to extend (1) its 

pilot to permit the listing and trading of 

options based on 1⁄5 the value of the 

Nasdaq-100 Index (‘‘NQX Pilot’’), and 

(2) the Exchange’s nonstandard 

expirations pilot program 

(‘‘Nonstandard Pilot’’). 

NQX Pilot 

ISE filed a rule change to permit the 

listing and trading of index options on 

the Nasdaq 100 Reduced Value Index 

(‘‘NQX’’) on a twelve month pilot basis.3

NQX options trade independently of 

and in addition to NDX options, and the 

NQX options are subject to the same 

rules that presently govern the trading 

of index options based on the Nasdaq100, including sales practice rules, 

margin requirements, trading rules, and 

position and exercise limits. Similar to 

NDX, NQX options are European-style 

and cash-settled, and have a contract 

multiplier of 100. The contract 

specifications for NQX options mirror in 

all respects those of the NDX options 

contract listed on the Exchange, except 

that NQX options are based on 1⁄5 of the 

value of the Nasdaq-100, and are P.M.- 

settled pursuant to Options 4A, Section 

12(a)(6). 

The Exchange proposes to amend ISE 

Options 4A, Section 12(a)(6)(i) to extend 

the current NQX Pilot period to 

November 4, 2022. The NQX Pilot was 

previously extended with the last 

extension through May 4, 2022.4 The 

Exchange continues to have sufficient 

capacity to handle additional quotations 

and message traffic associated with the 

listing and trading of NQX options. In 

addition, index options are integrated 

into the Exchange’s existing 

surveillance system architecture and are 

thus subject to the relevant surveillance 

processes. The Exchange also continues 

to have adequate surveillance 

procedures to monitor trading in NQX 

options thereby aiding in the 

maintenance of a fair and orderly 

market. Additionally, there is continued 

investor interest in these products and 

this extension will provide additional 

time to collect data related to the NQX 

Pilot. The Exchange believes that the 

proposed extension of the NQX Pilot 

will not have an adverse impact on 

capacity. 

NQX Pilot Report 

The Exchange currently makes public 

on its website the data and analysis 

previously submitted to the Commission 

on the NQX Pilot and will continue to 

make public any data or analysis it 

submits under the NQX Pilot in the 

future. The Exchange intends to submit 

a rule change proposing permanency of 

the NQX Pilot and would either provide 

additional data in such proposal or in 

an annual report. The Exchange would 

continue to provide the Commission 

with ongoing data unless and until the 

NQX Pilot is made permanent or 

discontinued. 

Nonstandard Pilot 

ISE filed a rule change for the listing 

and trading on the Exchange, on a 

twelve month pilot basis, of p.m.-settled 

options on broad-based indexes with 

nonstandard expirations dates.5 The 


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Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 21941 

(approving SR–ISE–2017–111) (Order Approving a 

Proposed Rule Change To Establish a Nonstandard 

Expirations Pilot Program). 

6See Securities Exchange Act Release Nos. 85030 

(February 1, 2019), 84 FR 2633 (February 7, 2019) 

(SR–ISE–2019–01); 85672 (April 17, 2019), 84 FR 

16899 (April 23, 2019) (SR–ISE–2019–11); 87380 

(October 22, 2019), 84 FR 57786 (October 28, 2019) 

(SR–ISE–2019–28); 88681 (April 17, 2020), 85 FR 

22775 (April 23, 2020) (SR–ISE–2020–17); 90265 

(October 23, 2020), 85 FR 68605 (October 29, 2020) 

(SR–ISE–2020–34); 91486 (April 6, 2021), 86 FR 

19048 (April 12, 2021) (SR–ISE–2021–06); and 

93449 (October 28, 2021), 86 FR 60679 (November 

3, 2021) (SR–ISE–2021–23). 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

Nonstandard Pilot permits both Weekly 

Expirations and End of Month (‘‘EOM’’) 

expirations similar to those of the a.m.- 

settled broad-based index options, 

except that the exercise settlement value 

of the options subject to the pilot are 

based on the index value derived from 

the closing prices of component stocks. 

The Nonstandard Pilot was extended 

various times with the last extension 

through May 4, 2022.6

Supplementary Material .07(a) to 

Options 4A, Section 12 provides that 

the Exchange may open for trading 

Weekly Expirations on any broad-based 

index eligible for standard options 

trading to expire on any Monday, 

Wednesday, or Friday (other than the 

third Friday-of-the-month or days that 

coincide with an EOM expiration). 

Weekly Expirations are subject to all 

provisions of Options 4A, Section 12 

and are treated the same as options on 

the same underlying index that expire 

on the third Friday of the expiration 

month. Unlike the standard monthly 

options, however, Weekly Expirations 

are p.m.-settled. 

Pursuant to Supplementary Material 

.07(b) to Options 4A, Section 12 the 

Exchange may open for trading EOM 

expirations on any broad-based index 

eligible for standard options trading to 

expire on the last trading day of the 

month. EOM expirations are subject to 

all provisions of Options 4A, Section 12 

and treated the same as options on the 

same underlying index that expire on 

the third Friday of the expiration 

month. However, the EOM expirations 

are p.m.-settled. 

The Exchange now proposes to amend 

Supplementary Material .07(c) to 

Options 4A, Section 12 so that the 

duration of the Nonstandard Pilot for 

these nonstandard expirations will be 

through November 4, 2022. The 

Exchange continues to have sufficient 

systems capacity to handle p.m.-settled 

options on broad-based indexes with 

nonstandard expirations dates and has 

not encountered any issues or adverse 

market effects as a result of listing them. 

Additionally, there is continued 

investor interest in these products. The 

Exchange will continue to make public 

on its website any data and analysis it 

submits to the Commission under the 

Nonstandard Pilot. The Exchange 

believes that the proposed extension of 

the Nonstandard Pilot will not have an 

adverse impact on capacity. 

Nonstandard Pilot Report 

The Exchange intends to submit a rule 

change proposing permanency of the 

Nonstandard Pilot and would either 

provide additional data in such 

proposal or in an annual report. The 

Exchange would continue to provide the 

Commission with ongoing data unless 

and until the Nonstandard Pilot is made 

permanent or discontinued. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,7 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,8 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. 

NQX Pilot 

In particular, the Exchange believes 

that the NQX Pilot has been successful 

to date. The Exchange has not 

encountered any problems with the 

NQX Pilot. By extending the NQX Pilot, 

the Exchange believes it will attract 

order flow to the Exchange, increase the 

variety of listed options, and provide a 

valuable hedge tool to retail and other 

investors. Specifically, the Exchange 

believes that the NQX Pilot will provide 

additional trading and hedging 

opportunities for investors while 

providing the Commission with data to 

monitor for and assess any potential for 

adverse market effects of allowing P.M.- 

settlement for NQX options, including 

on the underlying component stocks. 

Nonstandard Pilot 

The Exchange believes the proposed 

rule change will protect investors and 

the public interest by providing the 

Exchange, the Commission and 

investors the benefit of additional time 

to analyze nonstandard expiration 

options. In particular, the Exchange 

believes that the Nonstandard Pilot has 

been successful to date. The Exchange 

has not encountered any problems with 

the Nonstandard Pilot. By extending the 

Nonstandard Pilot, investors may 

continue to benefit from a wider array 

of investment opportunities. 

Additionally, both the Exchange and the 

Commission may continue to monitor 

the potential for adverse market effects 

of p.m.-settlement on the market, 

including the underlying cash equities 

market, at the expiration of these 

options. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that the proposed 

rule change will not impose an undue 

burden on inter-market competition as 

this rule change will continue to 

facilitate the listing and trading of new 

option products that will enhance 

competition among market participants, 

to the benefit of investors and the 

marketplace. Furthermore, these 

products could offer a competitive 

alternative to other existing investment 

products. Finally, it is possible for other 

exchanges to develop or license the use 

of a new or different index to compete 

with these products and seek 

Commission approval to list and trade 

options on such an index. 

NQX Pilot 

NQX options would be available for 

trading to all market participants and 

therefore would not impose an undue 

burden on intra-market competition. 

The continued listing of the NQX Pilot 

will enhance competition by providing 

investors with an additional investment 

vehicle, in a fully-electronic trading 

environment, through which investors 

can gain and hedge exposure to the 

Nasdaq-100. 

Nonstandard Pilot 

Options with nonstandard expirations 

would be available for trading to all 

market participants. The continued 

listing of the Nonstandard Pilot will 

enhance competition by providing 

investors with an additional investment 

vehicle, in a fully-electronic trading 

environment, through which investors 

can gain and hedge exposure to the 

Nasdaq-100. 

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. 


jspears on DSK121TN23PROD with NOTICES1
21942 Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 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. 11 17 CFR 200.30–3(a)(12). 

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 9 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.10

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– 

ISE–2022–09 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–ISE–2022–09. 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–ISE–2022–09, and should 

be submitted on or before May 4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07855 Filed 4–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–245, OMB Control No. 

3235–0204] 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 19d–3 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Rule 19d–3 (17 CFR 

240.19d–3) under the Securities 

Exchange Act of 1934 (17 U.S.C. 78a et 

seq.) (‘‘Exchange Act’’). The 

Commission plans to submit this 

existing collection of information to the 

Office of Management and Budget 

(‘‘OMB’’) for extension and approval. 

Rule 19d–3 prescribes the form and 

content of applications to the 

Commission by persons seeking 

Commission review of final disciplinary 

actions against them taken by selfregulatory organizations (‘‘SROs’’) for 

which the Commission is the 

appropriate regulatory agency. The 

Commission uses the information 

provided in the application filed 

pursuant to Rule 19d–3 to review final 

actions taken by SROs including: (1) 

Final disciplinary sanctions; (2) denial 

or conditioning of membership, 

participation or association; and (3) 

prohibitions or limitations of access to 

services offered by a SRO or member 

thereof. 

The staff estimates that 32 

respondents will file one application 

pursuant to Rule 19b–3 each year. The 

staff estimates that the average number 

of hours necessary to comply with the 

requirements of Rule 19d–3 is 

approximately eighteen hours. We 

estimate that approximately 16 firms or 

natural persons would draft the 

applications themselves, and therefore 

incur an hour burden of 18 hours each 

(a total hour burden of 288 hours), and 

that 16 would hire outside counsel, and 

therefore incur a cost burden of $8,496 

each (a total cost burden of $135,936). 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted by 

June 13, 2022. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: David Bottom, Chief Information 

Officer, Securities and Exchange 

Commission, c/o John Pezzullo, 100 F 

Street NE, Washington, DC 20549 or 

send an email to: PRA_Mailbox@

sec.gov. 


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