22238 Federal Register / Vol. 87, No. 72 / Thursday, April 14, 2022 / Notices 

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

2 17 CFR 240.19b–4. 

3OCC’s By-Laws and Rules can be found on 

OCC’s public website: https://www.theocc.com/ 

Company-Information/Documents-and-Archives/ 

By-Laws-and-Rules. 

4The definition of ‘‘weekly option’’ also states 

that ‘‘[t]he term ‘weekly index option’ means a 

weekly option on an index.’’ OCC is not proposing 

changes to this part of the weekly option definition. 5See Exchange Act Release No. 63293, 75 FR 

70055 (November 16, 2010) (approval order 

establishing weekly options and monthly options). 6The definition of ‘‘short term option’’ also 

specifies that a short term option series may be 

opened in any option class. OCC is not proposing 

changes to this part of the short term option 

definition. 7See Exchange Act Release No. 52010, 70 FR 

41469 (July 19, 2005) (SR–OCC–2005–06) (approval 

order to support the short term options pilot 

program). See also e.g., Exchange Act Release Nos. 

52011 (July 12, 2005), 70 FR 41451 (July 19, 2005) 

(SR–CBOE–2004–63) (approval order establishing 

Weeklys Pilot Program) and 59824 (April 27, 2009), 

74 FR 20518 (May 4, 2009) (SR–CBOE–2009–018) 

(approval order permanently establishing Weeklys 

Program). CBOE refers to its short term option 

program as the ‘‘Weeklys Program.’’ 

8See e.g., Cboe Rule 4.13(e)(1) (‘‘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 [end of month] 

expiration.’’)(emphasis added). 

9See Exchange Act Release No. 94292, 87 FR 

11102 (February 28, 2022) (SR–CBOE–2022–005) 

(notice of filing of proposed rule change to permit 

P.M.-settled S&P 500 index options that expire on 

Tuesday or Thursday). 10See e.g., Cboe Rule 4.5(d) (‘‘Short Term Option 

Series Program. After an option class has been 

Partnerships Programmatic Plans and 

Budget Scenarios. 

CONTACT PERSON FOR MORE INFORMATION: 

Point of contact for this meeting is: 

Chris Blair, cblair@nsf.gov, 703/292– 

7000. Meeting information and updates 

may be found at www.nsf.gov/nsb. 

Chris Blair, 

Executive Assistant to the National Science 

Board Office. 

[FR Doc. 2022–08054 Filed 4–12–22; 11:15 am] 

BILLING CODE 7555–01–P 

NATIONAL SCIENCE FOUNDATION 

Sunshine Act Meetings 

The National Science Board hereby 

gives notice of the scheduling of a 

teleconference for the transaction of 

National Science Board business 

pursuant to the NSF Act and the 

Government in the Sunshine Act. 

TIME AND DATE: Monday, April 18, 2022, 

from 1:00 p.m.–2:00 p.m. EDT. 

PLACE: This meeting will be held by 

teleconference through the National 

Science Foundation, 2415 Eisenhower 

Avenue, Alexandria, VA 22314. 

STATUS: Closed. 

MATTERS TO BE CONSIDERED: The agenda 

is: NSB Chair’s Opening Remarks; 

Action Item—McMurdo Pier Project; 

Presentation and Discussion; and Vote. 

CONTACT PERSON FOR MORE INFORMATION: 

Point of contact for this meeting is: 

Chris Blair, cblair@nsf.gov, 703/292– 

7000. Meeting information and updates 

may be found at www.nsf.gov/nsb. 

Chris Blair, 

Executive Assistant to the National Science 

Board Office. 

[FR Doc. 2022–08052 Filed 4–12–22; 11:15 am] 

BILLING CODE 7555–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94646; File No. SR–OCC– 

2022–006] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by The 

Options Clearing Corporation 

Concerning Weekly Options and Short 

Term Options 

April 8, 2022. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on March 25, 2022, The 

Options Clearing Corporation (‘‘OCC’’) 

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 OCC. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

This proposed rule change would 

amend the definitions of ‘‘weekly 

option’’ and ‘‘short term option’’ in 

Article I of OCC’s By-Laws. The 

proposed rule change would amend 

these definitions to align with the rules 

of participant options exchanges by 

clarifying that weekly options and short 

term options may expire and/or be 

opened in accordance with the rules of 

the exchange on which they are traded. 

The proposed changes to OCC’s ByLaws are included in Exhibit 5 of File 

No. SR–OCC–2022–006. Material 

proposed to be added to OCC’s By-Laws 

as currently in effect is underlined and 

material proposed to be deleted is 

marked in strikethrough text. All 

capitalized terms not defined herein 

have the same meaning as set forth in 

the OCC By-Laws and Rules.3

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(1) Purpose 

The purpose of this proposed rule 

change is to more clearly align certain 

existing definitions in OCC’s By-Laws 

for options products with Exchange 

Rules related to those products. OCC 

currently facilitates the clearance and 

settlement of weekly options and short 

term options on behalf of participant 

options exchanges. The term ‘‘weekly 

option’’ is currently defined in Article I 

of OCC’s By-Laws as ‘‘an option of a 

series of stock options or index options 

that expires on any Friday of a calendar 

month other than the third Friday of 

such calendar month.’’ 4 The definition 

was first introduced in 2010.5 The term 

‘‘short term option’’ is currently defined 

as ‘‘an option of a series of options that 

expires one week after it is opened for 

trading’’ and further specifies that short 

term options ‘‘may be opened on a 

Friday that is a business day and shall 

expire, at the expiration time, on the 

next Friday that is a business day; 

provided, however, that if a Friday is 

not a business day, the series shall be 

opened (or shall expire) on the first 

business day immediately prior to that 

Friday.’’ 6 The definition was first 

introduced in 2005 in connection with 

a pilot program for short term options 

that was eventually made permanent in 

2009.7

Currently, participant options 

exchanges list and trade weekly options 

that expire on other days of the week, 

such as Monday or Wednesday,8 and a 

participant options exchange has 

recently filed a proposed rule change to 

list and trade weekly options that expire 

on Tuesday and Thursday.9 These 

exchanges also list short term options 

that may be opened on days other than 

a Friday and expire on days other than 

Friday.10 Because pursuant to Exchange 


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Federal Register / Vol. 87, No. 72 / Thursday, April 14, 2022 / Notices 22239 

approved for listing and trading on the Exchange, 

the Exchange may open for trading on any 

Thursday or Friday that is a business day . . . 

Monday and Wednesday SPY, IWM and QQQ 

Expirations. The Exchange may open for trading on 

any Friday or Monday that is a business day series 

of options on the SPDR S&P 500 ETF Trust (‘‘SPY’’) 

. . . that expire at the close of business each of the 

next five Mondays that are business days . . . The 

Exchange may also open for trading on any Tuesday 

or Wednesday that is a business day series of SPY 

options . . . that expire at the close of business on 

each of the next five Wednesdays . . . .’’). 

11 15 U.S.C. 78q–1(b)(3)(F). 

12 Id. 

13 Id. 

14 15 U.S.C. 78q–1(b)(3)(I). 

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

16 17 CFR 240.19b–4(f)(1), (4). 

17Notwithstanding its immediate effectiveness, 

implementation of this rule change will be delayed 

until this change is deemed certified under CFTC 

Regulation 40.6. 

Rules weekly options may expire on 

days other than Friday and short term 

options may be opened and expire on 

days other than Friday, OCC proposes 

making clarifying changes to these 

definitions to more closely align them 

with options Exchange Rules and with 

how these options trade today. 

Accordingly, OCC proposes to amend 

the definition of a weekly option to 

provide that a weekly option means ‘‘an 

option of a series of stock options or 

index options that has a weekly tenor 

and that expires on any day as provided 

in Exchange Rules. The term ‘weekly 

index option’ means a weekly option on 

an index.’’ Similarly, OCC proposes to 

amend the definition of a short term 

option to provide that a short term 

option means ‘‘an option of a series of 

options that pursuant to Exchange Rules 

expires one week after it is opened for 

trading. Short term option series may be 

opened in any option class.’’ In both 

cases, OCC proposes to remove language 

specifying particular days of the week 

on which weekly options or short term 

options may expire and/or be opened 

and to instead reference the relevant 

options Exchange Rules for information 

on expirations and any opening 

conditions. OCC believes that the 

proposed amendments would promote 

clarity in OCC’s By-Laws regarding 

when weekly options and short term 

options may be opened and/or expire 

and, as noted, promote greater 

consistency with options Exchange 

Rules. 

(2) Statutory Basis 

Section 17A(b)(3)(F) 11 of the 

Exchange Act requires, among other 

things, that the rules of a clearing 

agency be designed, in general, to 

protect investors and the public interest. 

OCC believes that the proposed rule 

change is consistent with Section 

17A(b)(3)(F) of the Act.12 As noted 

above, the proposed rule change would 

promote clarity in OCC’s By-Laws 

regarding when weekly options and 

short term options may be opened and/ 

or expire and consistency with options 

Exchange Rules. OCC believes that the 

proposed amendments to the ‘‘weekly 

option’’ and ‘‘short term option’’ 

definitions would protect investors and 

the public interest by setting forth clear 

definitions that are consistent with 

options Exchange Rules and in turn 

facilitate a clear understanding of the 

regulatory framework for weekly 

options and short term options. 

Additionally, OCC believes that making 

clarifying changes to its definitions of a 

weekly option and short term option to 

better align with options Exchange 

Rules helps foster cooperation and 

coordination with persons engaged in 

the clearance and settlement of 

securities transactions between and 

among OCC and the options exchanges 

that rely on OCC to clear and settle 

trades, consistent with Section 

17A(b)(3)(F) of the Act.13 Additionally, 

the proposed rule change is not 

inconsistent with the existing rules of 

OCC, including any other rules 

proposed to be amended. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Act 14

requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. OCC does not 

believe that the proposed amendments 

to the definitions of ‘‘weekly option’’ 

and ‘‘short term option’’ would impose 

any burden on competition because they 

would merely modify the definitions to 

promote consistency with options 

Exchange Rules and to reflect how these 

options trade today pursuant to those 

Exchange Rules. The proposed changes 

would not inhibit access to OCC’s 

services in any way, would apply to all 

Clearing Members uniformly and does 

not disadvantage or favor any particular 

user in relationship to another user. 

Accordingly, OCC does not believe that 

the proposed rule change would have 

any impact or impose a burden on 

competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments on the proposed 

rule change were not and are not 

intended to be solicited with respect to 

the proposed rule change and none have 

been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A)(ii) 15

of the Act, and Rule 19b–4(f)(1) and (4) 

thereunder,16 the proposed rule change 

is filed for immediate effectiveness. 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. The proposal 

shall not take effect until all regulatory 

actions required with respect to the 

proposal are completed.17

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– 

OCC–2022–006 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Vanessa Countryman, Secretary, 

Securities and Exchange Commission, 

100 F Street NE, Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–OCC–2022–006. 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 


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22240 Federal Register / Vol. 87, No. 72 / Thursday, April 14, 2022 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘PBBO’’ means the best bid or offer 

on MIAX Pearl. See Exchange Rule 100. 

4A Midpoint Peg Order is a non-displayed Limit 

Order that is assigned a working price pegged to the 

midpoint of the PBBO. A Midpoint Peg Order 

receives a new timestamp each time its working 

price changes in response to changes in the 

midpoint of the PBBO. See Exchange Rule 

2614(a)(3). 

5See MIAX’s ‘‘The Market at a Glance’’, available 

at https://www.miaxoptions.com/ (last visited 

March 24, 2022). 

6The term ‘‘Equity Member’’ is a Member 

authorized by the Exchange to transact business on 

MIAX Pearl Equities. See Exchange Rule 1901. 

7The Exchange notes that the standard rebate of 

$0.0021 per share for executions of Added NonDisplayed Liquidity in securities priced at or above 

$1.00 is not changing under this proposal. 

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 such 

filing also will be available for 

inspection and copying at the principal 

office of OCC and on OCC’s website at 

https://www.theocc.com/CompanyInformation/Documents-and-Archives/ 

By-Laws-and-Rules. 

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–OCC–2022–006 and should 

be submitted on or before May 5, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2022–07948 Filed 4–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94652; File No. SR– 

PEARL–2022–10] 

Self-Regulatory Organizations: MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX Pearl 

Equities Fee Schedule 

April 8, 2022. 

Pursuant to the provisions of 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, MIAX PEARL, LLC 

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

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

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 is filing a proposal to 

amend the fee schedule (the ‘‘Fee 

Schedule’’) applicable to MIAX Pearl 

Equities, an equities trading facility of 

the Exchange. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl at MIAX Pearl’s principal 

office, 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 purpose of the proposed rule 

change is to amend the Exchange’s Fee 

Schedule to (i) adopt a new Liquidity 

Code and associated rebate to the 

Liquidity Indicator Codes and 

Associated Fees table; (ii) adopt new 

Midpoint Peg Order Adding Liquidity at 

Midpoint Volume Tiers to improve 

market quality on the Exchange by 

offering an enhanced rebate for 

executions that Add Liquidity at the 

Midpoint of the PBBO 3 using a 

Midpoint Peg Order 4 in securities 

priced at or above $1.00 per share that 

add liquidity and are pegged to the 

midpoint of the bid and ask; and (iii) 

amend section 1(d) Remove Volume 

Tiers table to increase the fee. 

The Exchange first notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

16 registered equities exchanges, as well 

as a number of alternative trading 

systems and other off-exchange venues, 

to which market participants may direct 

their order flow. Based on publicly 

available information, no single 

registered equities exchange currently 

has more than approximately 17% of 

the total market share of executed 

volume of equities trading, and the 

Exchange currently represents 

approximately 1% of the overall market 

share.5

Additionally, in response to the 

competitive environment, the Exchange 

also offers tiered pricing, which 

provides Equity Members 6 (‘‘Members’’) 

with opportunities to qualify for higher 

rebates or lower fees when certain 

volume criteria and thresholds are met. 

Tiered pricing provides an incremental 

incentive for Members to strive for 

higher tier levels, which provides 

increasingly higher benefits or discounts 

for satisfying increasingly more 

stringent criteria. 

Adoption of Midpoint Peg Order 

Adding Liquidity at Midpoint Volume 

Tiers 

The Exchange is now proposing to 

introduce a new tiered pricing structure 

applicable to rebates provided for 

executions that add liquidity to the 

Exchange at the Midpoint of the PBBO 

using a Midpoint Peg Order (such 

orders, ‘‘Midpoint Peg Add Orders 

executed at the Midpoint’’). 

Specifically, the Exchange proposes to 

adopt new volume-based tiers, referred 

to by the Exchange as, ‘‘Midpoint Peg 

Order Adding Liquidity at Midpoint 

Volume Tiers,’’ in which the Exchange 

will provide an enhanced rebate for 

executions of Midpoint Peg Add Orders 

executed at the Midpoint for Members 

that meet certain volume thresholds on 

the Exchange. 

The Exchange currently provides a 

standard rebate of $0.0021 per share for 

executions of Added Non-Displayed 

Liquidity.7 The Exchange now proposes 

to introduce a tiered pricing structure in 

which it will provide an enhanced, 

incremental rebate of $0.0004 per share 

for an effective total rebate of $0.0025 


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