Federal Register / Vol. 87, No. 73 / Friday, April 15, 2022 / Notices 22605 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). A proposed rule change 

may take effect upon filing with the Commission if 

it is designated by the exchange as ‘‘establishing or 

changing a due, fee, or other charge imposed by the 

self-regulatory organization on any person, whether 

or not the person is a member of the self-regulatory 

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

4 15 U.S.C. 78s(b)(3)(C). 

5 15 U.S.C. 78s(b)(2)(B). 

6See Securities Exchange Act Release No. 94257 

(February 15, 2022), 87 FR 9678. 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Certain option classes, as determined by the 

Exchange and communicated to Members via 

Regulatory Circular, will be eligible to participate 

in a Complex Auction (an ‘‘eligible class’’). Upon 

evaluation as set forth in subparagraph (c)(5) of 

Exchange Rule 518, the Exchange may determine to 

automatically submit a Complex Auction-eligible 

order into a Complex Auction. Upon entry into the 

System or upon evaluation of a complex order 

resting at the top of the Strategy Book, Complex 

Auction-eligible orders may be subject to an 

automated request for responses (‘‘RFR’’). See 

Exchange Rule 518(d). 

4The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

5The Displayed Complex MIAX Best Bid or Offer 

(‘‘dcMBBO’’) is calculated using the best displayed 

price for each component of a complex strategy 

from the Simple Order Book. For stock-option 

orders, the dcMBBO for a complex strategy will be 

calculated using the Exchange’s best displayed bid 

or offer in the individual option component(s) and 

the NBBO in the stock component. See Exchange 

Rule 518(a)(8). 

6The term ‘‘Member’’ means an individual or 

organization approved to exercise the trading rights 

associated with a Trading Permit. Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100. 

7See MIAX Options Regulatory Circular 2016–48, 

MIAX Complex Auction Initiating Percentages 

(October 20, 2016) available at https://

www.miaxoptions.com/sites/default/files/circularfiles/MIAX_RC_2016_48.pdf. 

8The Initial Improvement Percentage (‘‘IIP’’) is 

currently set to 70%. See Id. 

9See Policy .03(a) of Exchange Rule 518. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94674; File No. SR– 

EMERALD–2022–04] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Withdrawal of 

Proposed Rule Change To Amend the 

MIAX Emerald Fee Schedule To Adopt 

a Tiered-Pricing Structure for Certain 

Connectivity Fees 

April 11, 2022. 

On February 1, 2022, MIAX Emerald, 

LLC (‘‘MIAX Emerald’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to amend the Exchange’s Fee 

Schedule to adopt a tiered-pricing 

structure for certain connectivity fees. 

The proposed rule change was 

immediately effective upon filing with 

the Commission pursuant to Section 

19(b)(3)(A) of the Act.3 On February 22, 

2022, the proposed rule change was 

published for comment in the Federal 

Register and, pursuant to Section 

19(b)(3)(C) of the Act,4 the Commission: 

(1) Temporarily suspended the 

proposed rule change; and (2) instituted 

proceedings under Section 19(b)(2)(B) of 

the Act 5 to determine whether to 

approve or disapprove the proposed 

rule change.6 On March 30, 2022, the 

Exchange withdrew the proposed rule 

change (SR–EMERALD–2022–04). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08070 Filed 4–14–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94671; File No. SR–MIAX– 

2022–13] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by Miami 

International Securities Exchange, LLC 

To Amend Exchange Rule 518, 

Complex Orders 

April 11, 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, Miami International Securities 

Exchange, LLC (‘‘MIAX Options’’ 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 

The Exchange is filing a proposal to 

amend Exchange Rule 518, Complex 

Orders. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/ at MIAX Options’ 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 Exchange proposes to amend 

Exchange Rule 518, Complex Orders, to 

change the value used in the calculation 

that determines whether a complex 

order is eligible to initiate a Complex 

Auction.3

Currently the Exchange uses the 

following methods to determine 

whether a complex order is qualified to 

initiate a Complex Auction: 

Initial Improvement Percentage (‘‘IIP’’) 

For complex orders received prior to 

the opening of all individual 

components of a complex strategy, the 

System 4 will calculate an IIP value, 

which is a defined percentage of the 

current dcMBBO 5 bid/ask differential 

once all of the components of the 

complex strategy have opened. Such 

percentage will be defined by the 

Exchange and communicated to 

Members 6 via Regulatory Circular.7 If a 

Complex Auction-eligible order is 

priced equal to, or improves, the IIP 

value 8 and is also priced equal to, or 

improves, other complex orders and/or 

quotes resting at the top of the Strategy 

Book, the complex order will be eligible 

to initiate a Complex Auction.9

Upon Receipt Improvement Percentage 

(‘‘URIP’’) 

Upon receipt of a complex order 

when the complex strategy is open, the 

System will calculate a URIP value, 

which is a defined percentage of the 

current dcMBBO bid/ask differential. 

Such percentage will be defined by the 


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22606 Federal Register / Vol. 87, No. 73 / Friday, April 15, 2022 / Notices 

10See supra note 7. 

11The Upon Receipt Improvement Percentage 

(‘‘URIP’’) is currently set to 70%. See supra note 7. 

12See Policy .03(b) of Exchange Rule 518. 

13See supra note 7. 

14The Re-evaluation Improvement Percentage 

(‘‘RIP’’) is currently set to 80%. See supra note 7. 

15See Policy .03(c) of Exchange Rule 518. 

16The Complex National Best Bid or Offer 

(‘‘cNBBO’’) is calculated using the NBBO for each 

component of a complex strategy to establish the 

best net bid and offer for a complex strategy. For 

stock-option orders, the cNBBO for a complex 

strategy will be calculated using the NBBO in the 

individual option component(s) and the NBBO in 

the stock component. See Exchange Rule 518(a)(2). 

17The ‘‘Simple Order Book’’ is the Exchange’s 

regular electronic book of orders and quotes. See 

Exchange Rule 518(a)(15). 

18The term ‘‘NBBO’’ means the national best bid 

or offer as calculated by the Exchange based on 

market information received by the Exchange from 

the appropriate Securities Information Processor 

(‘‘SIP’’). See Exchange Rule 518(a)(14). 

19See supra note 5. 

20 15 U.S.C. 78f(b). 

21 15 U.S.C. 78f(b)(5). 

22See supra note 19. 

23See supra note 16 

24The ‘‘Strategy Book’’ is the Exchange’s 

electronic book of complex orders and complex 

quotes. See Exchange Rule 518(a)(17). 

25The term ‘‘MBBO’’ means the best bid or offer 

on the Exchange. See Exchange Rule 100. 

Exchange and communicated to 

Members via Regulatory Circular.10 If a 

Complex Auction-eligible order is 

priced equal to, or improves, the URIP 

value 11 and is also priced to improve 

other complex orders and/or quotes 

resting at the top of the Strategy Book, 

the complex order will be eligible to 

initiate a Complex Auction.12

Re-Evaluation Improvement Percentage 

(‘‘RIP’’) 

Upon evaluation of a complex order 

resting at the top of the Strategy Book, 

the System will calculate a Reevaluation Improvement Percentage 

(‘‘RIP’’) value, which is a defined 

percentage of the current dcMBBO bid/ 

ask differential. Such percentage will be 

defined by the Exchange and 

communicated to Members via 

Regulatory Circular.13 If a complex 

order resting at the top of the Strategy 

Book is priced equal to, or improves, the 

RIP value,14 the complex order will be 

eligible to initiate a Complex Auction.15

Proposal 

The Exchange now proposes to 

replace the dcMBBO bid/ask differential 

with the cNBBO 16 bid/ask differential 

in the calculations described above for 

IIP, URIP, and RIP, respectively. The 

dcMBBO is calculated using the 

displayed price for each component of 

a complex strategy from the Simple 

Order Book 17 on the Exchange, whereas 

the cNBBO is calculated using the 

NBBO 18 for each component of a 

complex strategy to establish the best 

net bid and offer for a complex 

strategy.19 The Exchange believes that 

using the cNBBO will reduce the 

number of auctions generated by the 

Exchange System which do not receive 

responses or result in price 

improvement for the initiating order. 

The cNBBO, which includes the best 

away markets as well as the MBBO for 

each component of a complex strategy, 

will always be equal to or better than 

the dcMBBO, which includes the MBBO 

for each component of a complex 

strategy. The component prices 

contained in the cNBBO provide a more 

accurate indicator of the overall market 

interest in each component, and 

therefore, provides a more accurate 

indicator of the overall market interest 

in the complex strategy. The Exchange 

believes that this will result in a 

reduction of the overall number of 

Complex Auctions initiated on the 

Exchange but will in turn increase the 

percentage of Complex Auctions that 

result in price improvement, as the 

auction start price will be more closely 

aligned to prevailing market prices. 

Implementation 

The Exchange proposes to implement 

the proposed rule change in the second 

quarter of 2022. The Exchange will 

announce the implementation date to its 

Members via Regulatory Circular. 

2. Statutory Basis 

MIAX believes that its proposed rule 

change is consistent with Section 6(b) of 

the Act 20 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 21

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in regulating, clearing, 

settling, processing information with 

respect to, and facilitating transactions 

in securities, to remove impediments to 

and perfect the mechanisms of a free 

and open market and a national market 

system and, in general, to protect 

investors and the public interest. 

The Exchange believes that its 

proposal to use the cNBBO instead of 

the dcMBBO in the calculation used to 

determine whether a complex order is 

qualified to initiate a Complex Auction 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanisms of a free 

and open market and a national market 

system and, in general, protects 

investors and the public interest as 

using the cNBBO provides a better 

measure of the current market and is 

more likely to result in price 

improvement for the initiating order as 

the cNBBO is calculated using the 

NBBO (which in turn is calculated by 

taking the best prices of all exchanges 

into consideration) 22 for each 

component of a complex strategy to 

establish the best net bid and offer for 

a complex strategy,23 and therefore is 

more representative of the prevailing 

market interest and market prices. The 

example below demonstrates the 

difference between the current and 

proposed calculations. 

Example 1 

(Current Auction Evaluation Based on 

dcMBBO) 

Reevaluation Improvement Percentage 

(RIP) for a complex order at the best 

price on the Strategy Book 24 subject to 

dcMBBO. 

RIP = 80% 

MBBO: 25 Option A 2.00 × 2.10 

MBBO: Option B 1.05 × 1.20 

Strategy +1A¥1B = (2.00¥1.20) × 

(2.10¥1.05) 

dcMBBO = 0.80 × 1.05 

A complex order is resting on the 

Strategy Book to buy 1 Strategy at a 

price of 1.00. Upon reevaluation of the 

Strategy Book it is determined the 

complex order to buy at 1.00 improves 

the Strategy bid by 0.20; (1.00¥0.80). 

The improvement percentage is then 

calculated as the 0.20 improvement 

divided by the Strategy bid/offer spread; 

(1.05¥0.80), in this case resulting in 

80% improvement. Because the 80% 

improvement equals the configured RIP 

of 80% an auction is initiated. 

Example 2 

(Proposed Auction Evaluation Based on 

cNBBO) 

Reevaluation Improvement Percentage 

(RIP) for a complex order at the best 

price on the Strategy Book subject to 

cNBBO. 

RIP = 80% 

NBBO: Option A 2.05 × 2.10 

NBBO: Option B 1.05 × 1.10 

Strategy +1A¥1B = (2.05¥1.10) × 

(2.10¥1.05) 

cNBBO = 0.95 × 1.05 

A complex order is resting on the 

Strategy Book to buy 1 Strategy at a 

price of 1.00. Upon reevaluation of the 

Strategy Book it is determined the 

complex order to buy at 1.00 improves 

the Strategy bid by 0.05; (1.00¥0.95). 

The improvement percentage is then 

calculated as the 0.05 improvement 

divided by the Strategy bid/offer spread; 

(1.05¥0.95), in this case resulting in 

50% improvement. Because the 50% 


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Federal Register / Vol. 87, No. 73 / Friday, April 15, 2022 / Notices 22607 

26The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

27 15 U.S.C. 78s(b)(3)(A). 

28 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. 

29 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

improvement is less than the configured 

RIP of 80% an auction is not initiated. 

The Exchange believes that using the 

cNBBO in its calculation to determine 

whether a complex order is qualified to 

initiate a Complex Auction will reduce 

the number of Complex Auctions 

initiated by the Exchange System 26

which do not receive responses. Using 

the cNBBO instead of the dcMBBO 

better reflects the current state of the 

market and may result in Complex 

Auctions that receive responses which 

in turn may result in price improvement 

for the initiating order. 

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 does not believe that 

the proposed rule change to replace the 

dcMBBO value with the cNBBO value 

in the calculation used to determine 

whether a complex order is qualified to 

initiate a Complex Auction will impose 

any burden on inter-market 

competition. The Exchange believes its 

proposal may benefit competition as 

using the cNBBO in the calculation 

better reflects current market prices and 

may result in the initiation of Complex 

Auctions which result in price 

improvement for the initiating order. 

The Exchange believes the proposed 

rule change will enhance competition 

among the various markets for complex 

order execution, potentially resulting in 

more active complex order trading on 

all exchanges. Additionally, the 

Exchange believes that this change will 

result in a reduction of the overall 

number of Complex Auctions initiated 

on the Exchange but will in turn 

increase the percentage of auctions that 

result in price improvement, as the 

auction start price will be more closely 

aligned to prevailing market prices. 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intra-market competition 

as all complex orders submitted to the 

Exchange will be evaluated, and reevaluated, equally under the Exchange’s 

Rules. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor 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 after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

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

of the Act 27 and Rule 19b–4(f)(6) 28

thereunder. 

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– 

MIAX–2022–13. 

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–MIAX–2022–13. 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–MIAX–2022–13, and 

should be submitted on or before May 

6, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08068 Filed 4–14–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94666; File No. SR–NYSE– 

2022–17] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Expiration Date of the Temporary 

Amendments to Rules 9261 and 9830 

April 11, 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 March 29, 

2022, New York Stock Exchange LLC 

(‘‘NYSE’’ 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 


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