Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 21943 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62886 

(Sept. 10, 2010), 75 FR 56613 (Sept. 16, 2010) (SR– 

NYSEAmer–2010–60). 

5See Securities Exchange Act Release No. 68801 

(Feb. 1, 2013), 78 FR 8630 (Feb. 6, 2013) (SR– 

NYSEMKT–2013–11). 

6See Securities Exchange Act Release No. 72434 

(June 19, 2014), 79 FR 36110 (June 25, 2014) (SR– 

NYSEMKT–2014–37). 

7See Securities Exchange Act Release No. 67091 

(May 31, 2012), 77 FR 33498 (June 6, 2012) (the 

‘‘Limit Up-Limit Down Release’’). 

8See Securities Exchange Act Release No. 71820 

(March 27, 2014), 79 FR 18595 (April 2, 2014) (SR– 

NYSEMKT–2014–28). 

9See Securities Exchange Act Release No. 85623 

(April 11, 2019), 84 FR 16086 (April 17, 2019) 

(approving Eighteenth Amendment to LULD Plan). 

10See Securities Exchange Act Release No. 85563 

(April 9, 2019), 84 FR 15241 (April 15, 2019) (SR– 

NYSEAMER–2019–11). 

11See Securities Exchange Act Release No. 87354 

(October 18, 2019), 84 FR 57139 (October 24, 2019) 

(SR–NYSEAMER–2019–44). 

12See Securities Exchange Act Release No. 88589 

(April 8, 2020), 85 FR 20769 (April 14, 2020) (SR– 

NYSEAMER–2020–22). 

13See Securities Exchange Act Release No. 90154 

(October 13, 2020), 85 FR 66376 (October 19, 2020) 

(SR–NYSEAMER–2020–73). 

14See Securities Exchange Act Release No. 91552 

(April 14, 2021), 86 FR 20583 (April 20, 2021) (SR– 

NYSEAMER–2021–19). 

15See Securities Exchange Act Release No. 93356 

(October 15, 2021), 86 FR 58345 (October 21, 2021) 

(SR–NYSEAMER–2021–41). 

16See supra notes 4–6. The prior versions of 

paragraphs (c), (e)(2), (f), and (g) generally provided 

greater discretion to the Exchange with respect to 

breaking erroneous trades. 

Dated: April 7, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07835 Filed 4–12–22; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94641; File No. SR– 

NYSEAMER–2022–18] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extend the Current Pilot 

Program Related to Rule 7.10E 

April 7, 2022. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on April 5, 

2022, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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 extend the 

current pilot program related to Rule 

7.10E (Clearly Erroneous Executions) to 

the close of business on July 20, 2022. 

The proposed rule change is available 

on the Exchange’s website at 

www.nyse.com, at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to extend the current pilot 

program related to Rule 7.10E (Clearly 

Erroneous Executions) to the close of 

business on July 20, 2022. The pilot 

program is currently due to expire on 

April 20, 2022. 

On September 10, 2010, the 

Commission approved, on a pilot basis, 

changes to Rule 7.10E that, among other 

things: (i) Provided for uniform 

treatment of clearly erroneous execution 

reviews in multi-stock events involving 

twenty or more securities; and (ii) 

reduced the ability of the Exchange to 

deviate from the objective standards set 

forth in the rule.4 In 2013, the Exchange 

adopted a provision designed to address 

the operation of the Plan.5 Finally, in 

2014, the Exchange adopted two 

additional provisions providing that: (i) 

A series of transactions in a particular 

security on one or more trading days 

may be viewed as one event if all such 

transactions were effected based on the 

same fundamentally incorrect or grossly 

misinterpreted issuance information 

resulting in a severe valuation error for 

all such transactions; and (ii) in the 

event of any disruption or malfunction 

in the operation of the electronic 

communications and trading facilities of 

an Exchange, another SRO, or 

responsible single plan processor in 

connection with the transmittal or 

receipt of a trading halt, an Officer, 

acting on his or her own motion, shall 

nullify any transaction that occurs after 

a trading halt has been declared by the 

primary listing market for a security and 

before such trading halt has officially 

ended according to the primary listing 

market.6

These changes were originally 

scheduled to operate for a pilot period 

to coincide with the pilot period for the 

Plan to Address Extraordinary Market 

Volatility (the ‘‘Limit Up-Limit Down 

Plan’’ or ‘‘LULD Plan’’),7 including any 

extensions to the pilot period for the 

LULD Plan.8 In April 2019, the 

Commission approved an amendment to 

the LULD Plan for it to operate on a 

permanent, rather than pilot, basis.9 In 

light of that change, the Exchange 

amended Rule 7.10E to untie the pilot’s 

effectiveness from that of the LULD Plan 

and to extend the pilot’s effectiveness to 

the close of business on October 18, 

2019.10 The Exchange later amended 

Rule 7.10E to extend the pilot’s 

effectiveness to the close of business on 

April 20, 2020,11 October 20, 2020,12

April 20, 2021,13 October 20, 2021,14

and April 20, 2022.15

The Exchange now proposes to amend 

Rule 7.10E to extend the pilot’s 

effectiveness for a further three months 

until the close of business on July 20, 

2022. If the pilot period is not either 

extended, replaced or approved as 

permanent, the prior versions of 

paragraphs (c), (e)(2), (f), and (g) shall be 

in effect, and the provisions of 

paragraphs (i) through (k) shall be null 

and void.16 In such an event, the 

remaining sections of Rule 7.10E would 

continue to apply to all transactions 

executed on the Exchange. The 

Exchange understands that the other 

national securities exchanges and 

Financial Industry Regulatory Authority 

(‘‘FINRA’’) will also file similar 

proposals to extend their respective 

clearly erroneous execution pilot 

programs, the substance of which are 

identical to Rule 7.10E. 

The Exchange does not propose any 

additional changes to Rule 7.10E. 

Extending the effectiveness of Rule 

7.10E for an additional three months 

will provide the Exchange and other 

self-regulatory organizations additional 

time to consider whether further 


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21944 Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 

17 15 U.S.C. 78f(b). 

18 15 U.S.C. 78f(b)(5). 

19 15 U.S.C. 78s(b)(3)(A)(iii). 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of 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 Commission 

has waived the five-day prefiling requirement in 

this case. 

22 17 CFR 240.19b–4(f)(6). 

23 17 CFR 240.19b–4(f)(6)(iii). 

24For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

25 15 U.S.C. 78s(b)(2)(B). 

amendments to the clearly erroneous 

execution rules are appropriate. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

requirements of Section 6(b) of the 

Act,17 in general, and Section 6(b)(5) of 

the Act,18 in particular, in that it is 

designed to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, to promote just and equitable 

principles of trade, and, in general, to 

protect investors and the public interest 

and not to permit unfair discrimination 

between customers, issuers, brokers, or 

dealers. The Exchange believes that the 

proposed rule change promotes just and 

equitable principles of trade in that it 

promotes transparency and uniformity 

across markets concerning review of 

transactions as clearly erroneous. The 

Exchange believes that extending the 

clearly erroneous execution pilot under 

Rule 7.10E for an additional three 

months would help assure that the 

determination of whether a clearly 

erroneous trade has occurred will be 

based on clear and objective criteria, 

and that the resolution of the incident 

will occur promptly through a 

transparent process. The proposed rule 

change would also help assure 

consistent results in handling erroneous 

trades across the U.S. equities markets, 

thus furthering fair and orderly markets, 

the protection of investors and the 

public interest. Based on the foregoing, 

the Exchange believes the amended 

clearly erroneous executions rule 

should continue to be in effect on a pilot 

basis while the Exchange and other selfregulatory organizations consider 

whether further amendments to these 

rules are appropriate. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The proposal 

would ensure the continued, 

uninterrupted operation of harmonized 

clearly erroneous execution rules across 

the U.S. equities markets while the 

Exchange and other self-regulatory 

organizations consider whether further 

amendments to these rules are 

appropriate. The Exchange understands 

that the other national securities 

exchanges and FINRA will also file 

similar proposals to extend their 

respective clearly erroneous execution 

pilot programs. Thus, the proposed rule 

change will help to ensure consistency 

across market centers without 

implicating any competitive issues. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

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

19b–4(f)(6) thereunder.20 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder.21

A proposed rule change filed under 

Rule 19b–4(f)(6) 22 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),23 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange asked that the 

Commission waive the 30 day operative 

delay so that the proposal may become 

operative immediately upon filing. 

Waiver of the 30-day operative delay 

would extend the protections provided 

by the current pilot program, without 

any changes, while the Exchange and 

other self-regulatory organizations 

consider whether further amendments 

to these rules are appropriate. Therefore, 

the Commission hereby waives the 30- 

day operative delay and designates the 

proposed rule change as operative upon 

filing.24

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) 25 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– 

NYSEAMER–2022–18 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–NYSEAMER–2022–18. 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 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 21945 

26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(1). 

4 17 CFR 240.19b–4. 

5See Securities Exchange Act Release No. 93557 

(November 10, 2021), 86 FR 64268 (November 17, 

2021) (SR–IEX–2021–14). 

6See supra note 3. 

7See Securities Exchange Act Release No. 93883 

(December 30, 2021), 87 FR 523 (January 5, 2022) 

(SR–IEX–2021–14) (‘‘Suspension Order’’). 

8See January 27, 2022 letter from Erika Moore 

(Nasdaq Vice President and Corporate Secretary), 

January 26, 2022 letter from Tyler Gellasch 

(Executive Director, Healthy Markets Association), 

January 26, 2022 letter from Douglas Cifu (CEO, 

Virtu Financial, Inc.), and February 28, 2022 letter 

from Hope M. Jarkowski (General Counsel, New 

York Stock Exchange Group, Inc.). The comment 

letters are accessible at: https://www.sec.gov/ 

comments/sr-iex-2021-14/sriex202114.htm. 

9 IEX determined not to propose a redistribution 

fee in this Second Fee Filing (referred to as 

distribution fees in the fee schedule proposed in the 

First Fee Filing) because of challenges allocating 

costs directly to redistribution by a Data Subscriber. 

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–NYSEAMER–2022– 

18 and should be submitted on or before 

May 4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07847 Filed 4–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94630; File No. SR–IEX– 

2022–02] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Its 

Fee Schedule To Adopt Market Data 

Fees 

April 7, 2022. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on April 1, 

2022, the Investors Exchange LLC 

(‘‘IEX’’ 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 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 

Pursuant to the provisions of Section 

19(b)(1) under the Act,3 and Rule 19b– 

4 thereunder,4 the Exchange is filing 

with the Commission a proposed rule 

change to modify its Fee Schedule, 

pursuant to IEX Rules 15.110(a) and (c), 

to assess fees for receipt of its 

proprietary market data feeds. IEX 

intends to implement the proposed fees 

beginning on July 1, 2022, to provide an 

opportunity for subscribers to update 

their data subscriptions to suit their 

particular market data needs. 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.iextrading.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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

IEX is proposing to modify its Fee 

Schedule, pursuant to IEX Rules 

15.110(a) and (c), to assess fees for 

receipt of its proprietary market data 

feeds. 

Background 

IEX previously filed a proposal to 

charge market data fees on November 1, 

2021, with the proposed fee changes 

effective on filing but not operative until 

January 3, 2022 (‘‘First Fee Filing’’).5

The First Fee Filing was published for 

comment in the Federal Register on 

November 17, 2021.6 The Commission 

received no comments on the First Fee 

Filing before December 30, 2021. On 

that date, the Commission suspended 

the First Fee Filing and requested public 

comment and additional information on 

various aspects of the First Fee Filing.7

To date, the Commission has received 

four comment letters in response to its 

Suspension Order, none of which stated 

that the First Fee Filing should not be 

approved by the Commission.8

Generally, the letters either commended 

IEX for the level of transparency raised 

in its rule filing and offered support for 

approval, or raised issues which are 

irrelevant to the consideration of IEX 

fees. As described more fully below, this 

filing provides additional transparency 

in support of IEX’s proposed approach 

to charging for proprietary market data, 

as well as providing additional data and 

information included in the 

Commission’s requests for comments in 

the Suspension Order. 

The Exchange withdrew the First Fee 

Filing on April 1, 2022 and now submits 

this proposal for immediate 

effectiveness (‘‘Second Fee Filing’’), 

with a scheduled implementation date 

of July 1, 2022. This Second Fee Filing 

revises the fees proposed in the First 

Fee Filing to remove the proposed 

redistribution fees 9 and provide 

additional clarity regarding how the fees 

apply to affiliated market data 

subscribers. Further, as discussed 

below, in connection with the First Fee 

Filing, IEX obtained feedback from some 

current market data subscribers with 

respect to their anticipated plans with 

respect to IEX’s fee liable market data 

products (i.e., products for which IEX 

would charge a fee) which was not 

available at the time of filing of the First 

Fee Filing. This feedback enables IEX to 

supplement this Second Fee Filing with 

additional details relevant to its revenue 

projections. Additionally, this filing 

responds to various questions and 

requests for information contained in 

the Suspension Order. 

As explained in the First Fee Filing, 

IEX’s proposed market data fees were 

derived based on IEX’s costs to produce 

the market data products to which the 

fees apply and applying a reasonable 

markup over those costs (i.e., a ‘‘costplus model’’). Further, as discussed 

more fully below, the proposed 

allocation of these fees to the two 

market data products is informed by the 

extent to which demand for each 

product drives IEX’s overall market data 

costs and the different uses of the 

products by different types of 

participants. 


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