21938 Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 

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– 

NSX–2010–07). 

5See Securities Exchange Act Release No. 68803 

(Feb. 1, 2013), 78 FR 9078 (Feb. 7, 2013) (SR–NSX– 

2013–06). 

6See Securities Exchange Act Release No. 72434 

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

NSX–2014–08). 

7See Securities Exchange Act Release No. 83289 

(May 17, 2018), 83 FR 23968 (May 23, 2018) (SR– 

NYSENAT–2018–02). 

8See Securities Exchange Act Release No. 67091 

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

‘‘Limit Up-Limit Down Release’’). 

9See Securities Exchange Act Release No. 71797 

(March 25, 2014), 79 FR 18108 (March 31, 2014) 

(SR–NSX–2014–07). 

10See Securities Exchange Act Release No. 85623 

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

(approving Eighteenth Amendment to LULD Plan). 

11See Securities Exchange Act Release No. 85522 

(April 5, 2019), 84 FR 14704 (April 11, 2019) (SR– 

NYSENAT–2019–07). 

12See Securities Exchange Act Release No. 87352 

(October 18, 2019), 84 FR 57063 (October 24, 2019) 

(SR–NYSENAT–2019–24). 

13See Securities Exchange Act Release No. 88593 

(April 8, 2020), 85 FR 20728 (April 14, 2020) (SR– 

NYSENAT–2020–13). 

14See Securities Exchange Act Release No. 90157 

(October 13, 2020), 85 FR 66393 (October 19, 2020) 

(SR–NYSENAT–2020–32). 

15See Securities Exchange Act Release No. 91549 

(April 14, 2021), 86 FR 20548 (April 20, 2021) (SR– 

NYSENAT–2021–08). 

16See Securities Exchange Act Release No. 93359 

(October 15, 2021), 86 FR 58322 (October 21, 2021) 

(SR–NYSENAT–2021–20). 

17See 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. 

[FR Doc. 2022–07881 Filed 4–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94638; File No. SR– 

NYSENAT–2022–05] 

Self-Regulatory Organizations; NYSE 

National, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Current 

Pilot Program Related to Rule 7.10 

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 National, Inc. (‘‘NYSE 

National’’ 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 

7.10 (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 7.10 (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 11.19 (Clearly 

Erroneous Executions) 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 Rule 11.19 is no longer 

applicable to any securities that trade on 

the Exchange and has been replaced 

with Rule 7.10, which is substantively 

identical to Rule 11.19.7

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’’),8 including any 

extensions to the pilot period for the 

LULD Plan.9 In April 2019, the 

Commission approved an amendment to 

the LULD Plan for it to operate on a 

permanent, rather than pilot, basis.10 In 

light of that change, the Exchange 

amended Rule 7.10 to untie the pilot 

program’s effectiveness from that of the 

LULD Plan and to extend the pilot’s 

effectiveness to the close of business on 

October 18, 2019.11 The Exchange later 

amended Rule 7.10 to extend the pilot’s 

effectiveness to the close of business on 

April 20, 2020,12 October 20, 2020,13

April 20, 2021,14 October 20, 2021,15

and April 20, 2022.16

The Exchange now proposes to amend 

Rule 7.10 to extend the pilot’s 

effectiveness for a further three months 

to 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) as described in former Rule 

11.19 will be in effect, and the 

provisions of paragraphs (i) through (k) 

shall be null and void.17 In such an 

event, the remaining sections of Rule 

7.10 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 7.10. 

The Exchange does not propose any 

additional changes to Rule 7.10. 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 21939 

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

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

20 15 U.S.C. 78s(b)(3)(A)(iii). 

21 17 CFR 240.19b–4(f)(6). 

22 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. 

23 17 CFR 240.19b–4(f)(6). 

24 17 CFR 240.19b–4(f)(6)(iii). 

25For 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). 

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

Extending the effectiveness of Rule 7.10 

for an additional three months will 

provide the Exchange and other selfregulatory organizations additional time 

to consider whether further 

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,18 in general, and Section 6(b)(5) of 

the Act,19 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 7.10 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 20 and Rule 

19b–4(f)(6) thereunder.21 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.22

A proposed rule change filed under 

Rule 19b–4(f)(6) 23 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),24 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.25

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 26 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSENAT–2022–05 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–NYSENAT–2022–05. 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 


jspears on DSK121TN23PROD with NOTICES1
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 


jspears on DSK121TN23PROD with NOTICES1