22954 Federal Register / Vol. 87, No. 74 / Monday, April 18, 2022 / Notices 

1See Docket No. RM2018–3, Order Adopting 

Final Rules Relating to Non-Public Information, 

June 27, 2018, Attachment A at 19–22 (Order No. 

4679). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 67090 

(May 31, 2012), 77 FR 33531 (June 6, 2012) (SR– 

BATS–2011–038; SR–BYX–2011–025; SR–BX– 

2011–068; SR–CBOE–2011–087; SR–C2–2011–024; 

SR–CHX–2011–30; SR–EDGA–2011–31; SR–EDGX– 

2011–30; SR–FINRA–2011–054; SR–ISE–2011–61; 

SR–NASDAQ–2011–131; SR–NSX–2011–11; SR– 

NYSE–2011–48; SR–NYSEAmex–2011–73; SR– 

NYSEArca–2011–68; SR–Phlx–2011–129) (‘‘Pilot 

Rules Approval Order’’). 

6The rules of the equity options exchanges 

similarly provide for a halt in trading if the cash 

equity exchanges invoke a MWCB Halt. See, e.g., 

NYSE Arca Rule 6.65–O(d)(4). 

7See Securities Exchange Act Release No. 67091 

(May 31, 2012), 77 FR 33498 (June 6, 2012). The 

LULD Plan provides a mechanism to address 

extraordinary market volatility in individual 

securities. 

8See Securities Exchange Act Release Nos. 67090 

(May 31, 2012), 77 FR 33531 (June 6, 2012) (SR– 

with the requirements of 39 CFR 

3011.301.1

The Commission invites comments on 

whether the Postal Service’s request(s) 

in the captioned docket(s) are consistent 

with the policies of title 39. For 

request(s) that the Postal Service states 

concern market dominant product(s), 

applicable statutory and regulatory 

requirements include 39 U.S.C. 3622, 39 

U.S.C. 3642, 39 CFR part 3030, and 39 

CFR part 3040, subpart B. For request(s) 

that the Postal Service states concern 

competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3035, and 

39 CFR part 3040, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: MC2022–52 and 

CP2022–56; Filing Title: USPS Request 

to Add Priority Mail Express 

International, Priority Mail International 

& First-Class Package International 

Service Contract 5 to Competitive 

Product List and Notice of Filing 

Materials Under Seal; Filing Acceptance 

Date: April 12, 2022; Filing Authority: 

39 U.S.C. 3642, 39 CFR 3040.130 

through 3040.135, and 39 CFR 3035.105; 

Public Representative: Kenneth R. 

Moeller; Comments Due: April 20, 2022. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2022–08234 Filed 4–15–22; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94706; File No. SR–CBOE– 

2022–018] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Adopt on a Permanent 

Basis the Pilot Program for MarketWide Circuit Breakers, Currently 

Codified in Rule 5.22 

April 12, 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 11, 

2022, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) 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 Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 

Cboe Exchange, Inc. (the ‘‘Exchange’’) 

is filing with the Securities and 

Exchange Commission (the 

‘‘Commission’’) a proposal to adopt on 

a permanent basis the pilot program for 

Market-Wide Circuit Breakers, currently 

codified in Rule 5.22. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (https://www.cboe.com/ 

AboutCBOE/CBOELegalRegulatory

Home.aspx), at the Exchange’s Office of 

the Secretary, 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 5.22 to make permanent 

the Market-Wide Circuit Breaker 

(‘‘MWCB’’) pilot program. The proposal 

is substantively identical to New York 

Stock Exchange LLC (‘‘NYSE’’) Rule 

7.12 and NYSE American LLC (‘‘NYSE 

American’’) Rule 7.12E. 

The Pilot Rules 

The MWCB rules, including the 

Exchange’s Rule 5.22, provide an 

important, automatic mechanism that is 

invoked to promote stability and 

investor confidence during periods of 

significant stress when cash equities 

securities experience extreme marketwide declines. The MWCB rules are 

designed to slow the effects of extreme 

price declines through coordinated 

trading halts across both cash equity 

and equity options securities markets. 

The cash equities rules governing 

MWCBs were first adopted in 1988 and, 

in 2012, all U.S. cash equity exchanges 

and FINRA amended their cash equities 

uniform rules on a pilot basis (the ‘‘Pilot 

Rules,’’ i.e., Rule 5.22).5 The Pilot Rules 

currently provide for trading halts in all 

cash equity securities during a severe 

market decline as measured by a singleday decline in the S&P 500 Index 

(‘‘SPX’’).6 Under the Pilot Rules, a 

market-wide trading halt will be 

triggered if SPX declines in price by 

specified percentages from the prior 

day’s closing price of that index. The 

triggers are set at three circuit breaker 

thresholds: 7% (Level 1), 13% (Level 2), 

and 20% (Level 3). A market decline 

that triggers a Level 1 or Level 2 halt 

after 9:30 a.m. and before 3:25 p.m. 

would halt market-wide trading for 15 

minutes, while a similar market decline 

at or after 3:25 p.m. would not halt 

market-wide trading. (Level 1 and Level 

2 halts may occur only once a day.) A 

market decline that triggers a Level 3 

halt at any time during the trading day 

would halt market-wide trading for the 

remainder of the trading day. 

The Commission approved the Pilot 

Rules, the term of which was to 

coincide with the pilot period for the 

Plan to Address Extraordinary Market 

Volatility Pursuant to Rule 608 of 

Regulation NMS (the ‘‘LULD Plan’’),7

including any extensions to the pilot 

period for the LULD Plan.8 In April 


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Federal Register / Vol. 87, No. 74 / Monday, April 18, 2022 / Notices 22955 

CBOE–2011–087) (Approval Order); and 68770 

(January 30, 2013), 78 FR 8211 (February 5, 2013) 

(SR–CBOE–2013–011) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

Relating to Delay the Operative Date of a Rule 

Change To Exchange Rule 6.3B). 

9See Securities Exchange Act Release No. 85623 

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

10See Securities Exchange Act Release No. 85616 

(April 11, 2019), 84 FR 16093 (April 17, 2019) (SR– 

CBOE–2019–020) (proposal to extend the pilot for 

certain options pilots, including Rule 5.22, prior 

Rule 6.3B). 

11See Securities Exchange Act Release No. 87341 

(October 18, 2019), 84 FR 57081 (October 24, 2019) 

(SR–CBOE–2019–100). 

12See Securities Exchange Act Release No. 90165 

(October 13, 2020), 85 FR 66391 (October 19, 2020) 

(SR–CBOE–2020–098). 

13See Securities Exchange Act Release No. 93372 

(October 18, 2021), 86 FR 58709 (October 22, 2021) 

(SR–CBOE–2021–060). 

14See Securities Exchange Act Release No. 94454 

(March 17, 2022), 87 FR 16512 (March 17, 2022) 

(SR–CBOE–2022–013). 

15See Report of the Market-Wide Circuit Breaker 

(‘‘MWCB’’) Working Group Regarding the March 

2020 MWCB Events, submitted March 31, 2021 (the 

‘‘Study’’), available at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse/_of_the_MarketWide_Circuit_Breaker_Working_Group.pdf. 

16 Id at 46. 

17See Securities Exchange Act Release No. 92428 

(July 16, 2021), 86 FR 38776 (July 22, 2021) (SR– 

NYSE–2021–40). 

18See Securities Exchange Act Release No. 94441 

(March 16, 2022), 87 FR 16286 (March 22, 2022) 

(SR–NYSE–2021–40) (Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 1 To Adopt on a Permanent 

Basis the Pilot Program for Market-Wide Circuit 

Breakers in Rule 7.12). 

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 the proposal to 

make the LULD Plan permanent, the 

Exchange amended Rule 5.22 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 then 

filed to extend the pilot to the close of 

business on October 18, 2020,11 October 

18, 2021,12 March 18, 2022,13 and April 

18, 2022.14

The MWCB Working Group Study 

Beginning in February 2020, at the 

outset of the COVID–19 pandemic, the 

markets experienced increased 

volatility, culminating in four MWCB 

Level 1 halts on March 9, 12, 16, and 18, 

2020. In each instance, pursuant to the 

Pilot Rules, the markets halted as 

intended upon a 7% drop in SPX and 

did not start the process to resume 

trading until the prescribed 15-minute 

halt period ended. 

On September 17, 2020, the Director 

of the Commission’s Division of Trading 

and Markets asked the SROs to conduct 

a study of the design and operation of 

the Pilot Rules and the LULD Plan 

during the period of volatility in March 

2020. In response to the request, the 

SROs created a MWCB ‘‘Working 

Group’’ composed of SRO 

representatives and industry advisers 

that included members of the advisory 

committees to both the LULD Plan and 

the NMS Plans governing the collection, 

consolidation, and dissemination of 

last-sale transaction reports and 

quotations in NMS Stocks. The Working 

Group met regularly from September 

2020 through March 2021 to consider 

the Commission’s request, review data, 

and compile its study. 

On March 31, 2021, the MWCB 

Working Group submitted its study (the 

‘‘Study’’) to the Commission.15 The 

Study included an evaluation of the 

operation of the Pilot Rules during the 

March 2020 events and an evaluation of 

the design of the current MWCB system. 

In the Study, the Working Group 

concluded: (1) The MWCB mechanism 

set out in the Pilot Rules worked as 

intended during the March 2020 events; 

(2) the MWCB halts triggered in March 

2020 appear to have had the intended 

effect of calming volatility in the 

market, without causing harm; (3) the 

design of the MWCB mechanism with 

respect to reference value (SPX), trigger 

levels (7%/13%/20%), and halt times 

(15 minutes) is appropriate; (4) the 

change implemented in Amendment 10 

to the LULD Plan did not likely have 

any negative impact on MWCB 

functionality; and (5) no changes should 

be made to the mechanism to prevent 

the market from halting shortly after the 

opening of regular trading hours at 9:30 

a.m. 

In light of those conclusions, the 

MWCB Working Group also made 

several recommendations, including 

that (1) the Pilot Rules should be made 

permanent without any changes, and (2) 

SROs should adopt a rule requiring all 

designated Regulation SCI firms to 

participate in at least one Level 1/Level 

2 MWCB test each year and to verify 

their participation via attestation.16

Proposal To Make the Pilot Rules 

Permanent 

On July 16, 2021, NYSE proposed a 

rule change to make the Pilot Rules 

permanent, consistent with the Working 

Group’s recommendations.17 On March 

16, 2022, the Commission approved 

NYSE’s proposal.18

Consistent with the Commission’s 

approval of NYSE’s proposal, the 

Exchange now proposes that the Pilot 

Rules (i.e., paragraphs 

(a)–(e) of Rule 5.22) be made permanent. 

To accomplish this, the Exchange 

proposes to remove certain text within 

Rule 5.22, which currently provides that 

the rule is in effect during a pilot period 

that expires at the close of business on 

April 18, 2022. The Exchange does not 

propose any changes to paragraphs 

(a)–(e) of the Rule. 

Consistent with the Commission’s 

approval of NYSE’s proposal, the 

Exchange proposes to add new 

paragraphs (f), (g), and (h) to Rule 5.22 

as follows: 

(f) Market-Wide Circuit Breaker 

(‘‘MWCB’’) Testing. 

(1) The Exchange will participate in 

all industry-wide tests of the MWCB 

mechanism. Trading Permit Holders 

designated pursuant to paragraph (b) of 

Rule 5.24 to participate in Disaster 

Recovery are required to participate in 

at least one industry-wide MWCB test 

each year and to verify their 

participation in that test by attesting 

that they are able to or have attempted 

to: 

(A) Receive and process MWCB halt 

messages from the securities 

information processors (‘‘SIPs’’); 

(B) receive and process resume 

messages from the SIPs following a 

MWCB halt; 

(C) receive and process market data 

from the SIPs relevant to MWCB halts; 

and 

(D) send orders following a Level 1 or 

Level 2 MWCB halt in a manner 

consistent with their usual trading 

behavior. 

(2) To the extent that a Trading Permit 

Holder participating in a MWCB test is 

unable to receive and process any of the 

messages identified in paragraph 

(f)(1)(A)–(D) of this Rule, its attestation 

should notify the Exchange which 

messages it was unable to process and, 

if known, why. 

(3) Trading Permit Holders not 

designated pursuant to standards 

established in paragraph (b) of Rule 5.24 

are permitted to participate in any 

MWCB test. 

(g) In the event that a halt is triggered 

under this Rule following a Level 1, 

Level 2, or Level 3 Market Decline, the 

Exchange, together with other SROs and 

industry representatives (the ‘‘MWCB 

Working Group’’), will review such 

event. The MWCB Working Group will 

prepare a report that documents its 

analysis and recommendations and will 

provide that report to the Commission 

within 6 months of the event. 

(h) In the event that there is (1) a 

Market Decline of more than 5%, or (2) 

an SRO implements a rule that changes 

its reopening process following a 

MWCB Halt, the Exchange, together 

with the MWCB Working Group, will 

review such event and consider whether 

any modifications should be made to 

this Rule. If the MWCB Working Group 


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

20 15 U.S.C. 78f(b)(5). 21See 17 CFR 240.17a–1. 

recommends that a modification should 

be made to this Rule, the MWCB 

Working Group will prepare a report 

that documents its analysis and 

recommendations and provide that 

report to the Commission. 

2. Statutory Basis 

The Exchange believes that the 

proposal to make the Pilot Rules 

permanent is consistent with Section 

6(b) of the Act,19 in general, and furthers 

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

Act,20 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. 

The Pilot Rules set out in Rule 5.22 

are an important, automatic mechanism 

that is invoked to promote stability and 

investor confidence during periods of 

significant market stress when securities 

markets experience broad-based 

declines. The four MWCB halts that 

occurred in March 2020 provided the 

Exchange, the other SROs, and market 

participants with real-world experience 

as to how the Pilot Rules actually 

function in practice. Based on the 

Working Group’s Study and the 

Exchange’s own analysis of those 

events, the Exchange believes that 

making the Pilot Rules permanent 

would benefit market participants, 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and protect investors and the 

public interest. 

Specifically, the Exchange believes 

that making the Pilot Rules permanent 

would benefit market participants, 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and protect investors and the 

public interest, because the Pilot Rules 

worked as intended during the March 

2020 events. As detailed above, the 

markets were in communication before, 

during, and after each of the MWCB 

Halts that occurred in March 2020. All 

9,000+ equity symbols were 

successfully halted in a timely manner 

when SPX declined 7% from the 

previous day’s closing value, as 

designed. The Exchange believes that 

market participants would benefit from 

having the Pilot Rules made permanent 

because such market participants are 

familiar with the design and operation 

of the MWCB mechanism set out in the 

Pilot Rules, and know from experience 

that it has functioned as intended on 

multiple occasions under real-life stress 

conditions. Accordingly, the Exchange 

believes that making the Pilot Rules 

permanent would enhance investor 

confidence in the ability of the markets 

to successfully halt as intended when 

under extreme stress. 

The Exchange further believes that 

making the Pilot Rules permanent 

would benefit market participants, 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and protect investors and the 

public interest, because the halts that 

were triggered pursuant to the Pilot 

Rules in March 2020 appear to have had 

the intended effect of calming volatility 

in the market without causing harm. As 

detailed above, after studying a variety 

of metrics concerning opening and 

reopening auctions, quote volatility, and 

other factors, the Exchange concluded 

that there was no significant difference 

in the percentage of securities that 

opened on a trade versus on a quote for 

the four days in March 2020 with 

MWCB Halts, versus the other periods 

studied. In addition, while the postMWCB Halt reopening auctions were 

smaller than typical opening auctions, 

the size of those post-MWCB Halt 

reopening auctions plus the earlier 

initial opening auctions in those 

symbols was on average equal to 

opening auctions in January 2020. The 

Exchange believes this indicates that the 

MWCB Halts on the four March 2020 

days did not cause liquidity to 

evaporate. Finally, the Exchange 

observes that while quote volatility was 

generally higher on the four days in 

March 2020 with MWCB Halts as 

compared to the other periods studied, 

quote volatility stabilized following the 

MWCB Halts at levels similar to the 

January 2020 levels, and LULD Trading 

Pauses worked as designed to address 

any additional volatility later in the day. 

From this evidence, the Exchange 

concludes that the Pilot Rules actually 

calmed volatility on the four MWCB 

Halt days in March 2020, without 

causing liquidity to evaporate or 

otherwise harming the market. As such, 

the Exchange believes that making the 

Pilot Rules permanent would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest. 

The Exchange believes that that 

making the Pilot Rules permanent 

without any changes would benefit 

market participants, promote just and 

equitable principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest, 

because the current design of the MWCB 

mechanism as set out in the Pilot Rules 

remains appropriate. As detailed above, 

the Exchange considered whether SPX 

should be replaced as the reference 

value, whether the current trigger levels 

(7%/13%/20%) and halt times (15 

minutes for Level 1 and 2 halts) should 

be modified, and whether changes 

should be made to prevent the market 

from halting shortly after the opening of 

regular trading hours at 9:30 a.m., and 

concluded that the MWCB mechanism 

set out in the Pilot Rules remains 

appropriate, for the reasons cited above. 

The Exchange believes that public 

confidence in the MWCB mechanism 

would be enhanced by the Pilot Rules 

being made permanent without any 

changes, given investors’ familiarity 

with the Pilot Rules and their successful 

functioning in March 2020. 

The Exchange believes that proposed 

paragraph (f) regarding MWCB testing 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. The Working Group 

recommended that all cash equities 

exchanges adopt a rule requiring all 

designated Regulation SCI firms to 

participate in MWCB testing and to 

attest to their participation. The 

Exchange believes that these 

requirements would promote the 

stability of the markets and enhance 

investor confidence in the MWCB 

mechanism and the protections that it 

provides to the markets and to investors. 

The Exchange further believes that 

requiring firms participating in a MWCB 

test to identify any inability to process 

messages pertaining to such MWCB test 

would contribute to a fair and orderly 

market by flagging potential issues that 

should be corrected. The Exchange 

would preserve such attestations 

pursuant to its obligations to retain 

books and records of the Exchange.21

The Exchange believes that proposed 

paragraph (g) would benefit market 

participants, promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest. 

Having the MWCB Working Group 

review any halt triggered under Rule 


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22 15 U.S.C. 78s(b)(3)(A). 

23 17 CFR 240.19b–4(f)(6). 

24 17 CFR 240.19b–4(f)(6). 

25 17 CFR 240.19b–4(f)(6)(iii). 

26For 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). 

5.22 and prepare a report of its analysis 

and recommendations would permit the 

Exchange, along with other market 

participants and the Commission, to 

evaluate such event and determine 

whether any modifications should be 

made to Rule 5.22 in the public interest. 

Preparation of such a report within 6 

months of the event would permit the 

Exchange, along with the MWCB 

Working Group, sufficient time to 

analyze such halt and prepare their 

recommendations. 

The Exchange believes that proposed 

paragraph (h) would benefit market 

participants, promote just and equitable 

principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest. 

Having the MWCB Working Group 

review instances of a Market Decline of 

more than 5% or an SRO implementing 

a rule that changes its reopening process 

following a MWCB Halt would allow 

the MWCB Working Group to identify 

situations where it recommends that 

Rule 5.22 be modified in the public 

interest. In such situations where the 

MWCB Working Group recommends 

that a modification should be made to 

Rule 5.22, the MWCB Working Group 

would prepare a report that documents 

its analysis and recommendations and 

provide that report to the Commission, 

thereby removing impediments to and 

perfecting the mechanism of a free and 

open market and a national market 

system while protecting investors and 

the public interest. 

For the foregoing reasons, the 

Exchange believes that the proposed 

change is consistent with the Act. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed change is not intended to 

address competition, but rather, makes 

permanent the current MWCB Pilot 

Rules for the protection of the markets. 

The Exchange believes that making the 

current MWCB Pilot Rules permanent 

would have no discernable burden on 

competition at all, since the Pilot Rules 

have already been in effect since 2012 

and would be made permanent without 

any changes. Moreover, because the 

MWCB mechanism contained in the 

Pilot Rules requires all exchanges and 

all market participants to cease trading 

at the same time, making the Pilot Rules 

permanent would not provide a 

competitive advantage to any exchange 

or any class of market participants. 

Further, the Exchange understands 

that the other SROs will submit 

substantively identical proposals to the 

Commission. Thus, the proposed rule 

change will help to ensure consistency 

across SROs without implicating any 

competitive issues. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: 

A. Significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. 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) of the 

Act 22 and Rule 19b–4(f)(6) 23

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 24 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),25 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 allow the Exchange to 

immediately provide the protections 

included in this proposal in the event of 

a MWCB halt, which is consistent with 

the protection of investors and the 

public interest. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change as operative upon 

filing.26

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2022–018 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–CBOE–2022–018. 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 (https://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. 


khammond on DSKJM1Z7X2PROD with NOTICES
22958 Federal Register / Vol. 87, No. 74 / Monday, April 18, 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. 91744 

(May 3, 2021), 86 FR 24685 (May 7, 2021) 

(NASDAQ–2021–025) (‘‘Proposal’’). 

4See Proposal supra n. 3 at 24685. 

5See Securities Exchange Act Release No. 93125 

(September 24, 2021), 86 FR 54255 (September 30, 

2021). 

6As a result of the delay, the Exchange is 

designating Equity 7, Section 116–A, the Post-Trade 

Risk Management Rule, to be operative in Q2 2022. 

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

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

You should submit only information 

that you wish to make available 

publicly. All submissions should refer 

to File Number SR–CBOE–2022–018 

and should be submitted on or before 

May 9, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08180 Filed 4–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94704; File No. SR– 

NASDAQ–2022–029] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Implementation Date of Nasdaq’s PostTrade Risk Management Product to Q2 

2022 

April 12, 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, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II 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 

implementation date of its Post-Trade 

Risk Management product to Q2 2022. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/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 

Nasdaq is filing this proposal to 

extend the implementation date of its 

Post-Trade Risk Management tool to Q2 

2022. 

Nasdaq proposed to enhance its 

connectivity, surveillance and risk 

management services by launching three 

re-platformed products: (i) WorkX, (ii) 

Real-Time Stats and (iii) Post-Trade Risk 

Management. These changes were filed 

by Nasdaq on April 20, 2021 and 

published in the Federal Register on 

May 7, 2021.3

Nasdaq initially proposed that WorkX 

and Real-Time Stats would launch on 

April 12, 2021 and Post-Trade Risk 

Management would launch no later than 

Q3 2021.4 Due to re-prioritization in the 

Nasdaq product pipeline, on September 

14, 2021, Nasdaq proposed to delay the 

implementation date of Post-Trade Risk 

Management until Q1 2022.5 Due to 

continued re-prioritization, Nasdaq is 

further delaying the implementation of 

Post-Trade Risk Management until Q2 

2022.6 The Exchange will announce the 

new implementation date in an Equity 

Trader Alert at least ten days in advance 

of implementing the Post-Trade Risk 

Management product. 

2. Statutory Basis 

The Exchange believes that its 

proposal 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. 

The purpose of this proposal is to 

modify the timing of the planned 

implementation for the Post-Trade Risk 

Management product and to inform the 

SEC and market participants of that 

change. The introduction of the PostTrade Risk Management product was 

proposed in a rule filing that was 

submitted to the SEC, and the Exchange 

is not proposing with this filing, any 

changes other than to modify the 

implementation date for the Post-Trade 

Risk Management product. Nasdaq is 

delaying the implementation date in 

order to complete testing in line with 

Nasdaq’s re-prioritized product 

pipeline. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. As explained 

above, the purpose of this proposal is to 

modify the timing of the planned 

implementation for the Post-Trade Risk 

Management product and to inform the 

SEC and market participants of that 

change. The existing Nasdaq Risk 

Management product will continue to 

be available, and the implementation 

delay will impact all market 

participants equally. The Exchange does 

not expect the date change to place any 

burden on competition and clearing 

brokers will continue to have use of 

Nasdaq Risk Management service to 

monitor correspondent activity against 

limit settings and manage credit risk 

exposure. 

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. 

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 


khammond on DSKJM1Z7X2PROD with NOTICES