24366 Federal Register / Vol. 87, No. 79 / Monday, April 25, 2022 / Notices 

54 15 U.S.C. 78s(b)(2). 

55 Id. 

56 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 93343 

(October 15, 2021), 86 FR 58347 (October 21, 2021) 

(SR–CboeBYX–2021–025). 

6See Securities Exchange Act Release No. 63097 

(Oct. 13, 2010), 75 FR 64767 (Oct. 20, 2010) (SR– 

BYX–2010–002). 

7See Securities Exchange Act Release No. 68798 

(Jan. 31, 2013), 78 FR 8628 (Feb. 6, 2013) (SR–BYX– 

2013–005). 

8See Securities Exchange Act Release No. 71796 

(March 25, 2014), 79 FR 18099 (March 31, 2014) 

(SR–BYX–2014–003). 

9See Securities Exchange Act Release No. 84843 

(December 18, 2018), 83 FR 66464 (December 26, 

2018) (File No. 4–631) (‘‘Eighteenth Amendment’’). 

10See Securities Exchange Act Release No. 67091 

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

‘‘Limit Up-Limit Down Release’’). 

11See Securities Exchange Act Release No. 85542 

(Apr. 8, 2019), 84 FR 15009 (Apr. 12, 2019) (SR– 

CboeBYX–2019–003). 

Commission believes that such changes 

and additional information do not raise 

unique or novel regulatory issues under 

the Act. Accordingly, the Commission 

finds good cause, pursuant to Section 

19(b)(2) of the Act,54 to approve the 

proposed rule change, as modified by 

Amendment No. 1, on an accelerated 

basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,55 that the 

proposed rule change (SR–NYSEArca– 

2021–73), as modified by Amendment 

No. 1, be, and it hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.56

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08678 Filed 4–22–22; 8:45 am] 

BILLING CODE 8011–01–P≤ 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34 94751; File No. SR– 

CboeBYX–2022–013] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Extend the 

Current Pilot Program Related to BYX 

Rule 11.17, Clearly Erroneous 

Executions, to the Close of Business 

on July 20, 2022 

April 19, 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 18, 

2022, Cboe BYX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 ‘‘non-controversial’’ 

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 BYX Exchange, Inc. (‘‘BYX’’ or 

the ‘‘Exchange’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposed rule 

change to extend the current pilot 

program related to BYX Rule 11.17, 

Clearly Erroneous Executions, to the 

close of business on July 20, 2022. 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 (http://markets.cboe.com/us/ 

equities/regulation/rule_filings/byx/), 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 purpose of this filing is to extend 

the effectiveness of the Exchange’s 

current rule applicable to Clearly 

Erroneous Executions to the close of 

business on July 20, 2022. Portions of 

Rule 11.17, explained in further detail 

below, are currently operating as a pilot 

program set to expire on April 20, 

2022.5

On September 10, 2010, the 

Commission approved, on a pilot basis, 

changes to BYX Rule 11.17 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.6 In 2013, the Exchange 

adopted a provision designed to address 

the operation of the Plan.7 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.8

On December 26, 2018, the 

Commission published the proposed 

Eighteenth Amendment 9 to the Plan to 

Address Extraordinary Market Volatility 

Pursuant to Rule 608 of Regulation NMS 

under the Act (the ‘‘Limit Up-Limit 

Down Plan’’ or the ‘‘Plan’’) 10 to allow 

the Plan to operate on a permanent, 

rather than pilot, basis. On April 8, 

2019, the Exchange amended BYX Rule 

11.17 to untie the pilot program’s 

effectiveness from that of the Plan and 

to extend the pilot’s effectiveness to the 

close of business on October 18, 2019 in 

order allow the Exchange and other 

national securities exchanges additional 

time to consider further amendments, if 

any, to the clearly erroneous execution 

rules in light of the proposed Eighteenth 

Amendment to the Plan.11 On April 17, 

2019, the Commission published an 

approval of the Eighteenth Amendment 

to allow the Plan to operate on a 


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Federal Register / Vol. 87, No. 79 / Monday, April 25, 2022 / Notices 24367 

12See Securities Exchange Act Release No. 85623 

(Apr. 11, 2019), 84 FR 16086 (Apr. 17, 2019) (File 

No. 4–631). 

13See Securities Exchange Act Release No. 87364 

(Oct. 21, 2019), 84 FR 57528 (Oct. 25, 2019) (SR– 

CboeBYX–2019–018). 

14See Securities Exchange Act Release No. 88496 

(March 27, 2020), 85 FR 18600 (April 2, 2020) (SR– 

CboeBYX–2020–010). 

15See Securities Exchange Act Release No. 90230 

(October 20, 2020), 85 FR 67802 (Oct. 26, 2020) 

(SR–CboeBYX–2020–030). 

16See Securities Exchange Act Release No. 20578 

(April 14, 2021), 86 FR 20578 (April 20, 2021) (SR– 

CboeBYX–2021–008). 

17See supra note 5. 

18See Securities Exchange Act Release No. 94374 

(March 7, 2022), 87 FR 14062 (March 11, 2022) (SR– 

CboeBZX–2022–017). 

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

20 15 U.S.C. 78f(b)(5). 

21 Id. 

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

23 17 CFR 240.19b–4(f)(6). 

24 15 U.S.C. 78s(b)(3)(A)(iii). 

25 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. 

26 17 CFR 240.19b–4(f)(6). 

27 17 CFR 240.19b–4(f)(6)(iii). 

28For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

Continued 

permanent, rather than pilot, basis.12 On 

October 21, 2019, the Exchange 

amended BYX Rule 11.17 to extend the 

pilot’s effectiveness to the close of 

business on April 20, 2020.13 On March 

18, 2020, the Exchange amended BYX 

Rule 11.17 to extend the pilot’s 

effectiveness to the close of business on 

October 20, 2020.14 On October 20, 

2020, the Exchange amended BYX Rule 

11.17 to extend the pilot’s effectiveness 

to the close of business on April 20, 

2021.15 On April 14, 2021 the Exchange 

amended BYX Rule 11.17 to extend the 

pilot’s effectiveness to the close of 

business on October 20, 2021.16 Finally, 

on October 15, 2021 the Exchange 

amended BYX Rule 11.17 to extend the 

pilot’s effectiveness to the close of 

business on April 20, 2022.17

Other self-regulatory organizations 

(‘‘SROs’’), including the Exchange, have 

worked on a proposed rule change to 

make the pilot rules permanent. Cboe 

BZX Exchange, Inc., (‘‘BZX’’) filed such 

a proposed rule change on March 7, 

2022.18 The Exchange now proposes to 

amend BYX Rule 11.17 to extend the 

pilot’s effectiveness an additional three 

months to the close of business on July 

20, 2022 while the Commission 

considers the BZX proposal. The 

Exchange understands that the other 

national securities exchanges and 

Financial Industry Regulatory Authority 

(‘‘FINRA’’) have filed or plan to file 

similar proposals to extend their 

respective clearly erroneous execution 

pilot programs, the substance of which 

are identical to BYX Rule 11.17. The 

Exchange does not propose any 

additional changes to BYX Rule 11.17. 

The Exchange believes the benefits to 

market participants from the more 

objective clearly erroneous executions 

rule should continue on a limited three 

month pilot basis. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.19 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 20 requirements that the rules of 

an exchange be 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 mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 21 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

that extending the clearly erroneous 

execution pilot under BYX Rule 11.17 

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 the 

other national securities exchanges 

consider and develop a permanent 

proposal for clearly erroneous execution 

reviews. 

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. To the 

contrary, the Exchange understands that 

FINRA and other national securities 

exchanges have or 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 

Written comments were neither 

solicited nor received. 

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 22 and Rule 

19b–4(f)(6) thereunder.23 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 

19(b)(3)(A)(iii) of the Act 24 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.25

A proposed rule change filed under 

Rule 19b–4(f)(6) 26 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),27 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.28


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24368 Federal Register / Vol. 87, No. 79 / Monday, April 25, 2022 / Notices 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 29 17 CFR 200.30–3(a)(12). 

1The hourly rate used for a compliance clerk was 

from SIFMA’s Office Salaries in the Securities 

Industry 2013, modified by Commission staff to 

account for an 1,800 hour work-year and multiplied 

by 2.93 to account for bonuses, firm size, employee 

benefits and overhead. 

2The hourly rate used for a compliance manager 

was from SIFMA’s Management & Professional 

Earnings in the Securities Industry 2013, modified 

by Commission staff to account for an 1,800 hour 

work-year and multiplied by 5.35 to account for 

bonuses, firm size, employee benefits and overhead. 

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– 

CboeBYX–2022–013 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–CboeBYX–2022–013. 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 such 

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–CboeBYX–2022–013 and 

should be submitted on or before May 

16, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08682 Filed 4–22–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–329, OMB Control No. 

3235–0371] 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736. 

Extension: 

Rule 15a–6 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 15a–6 (17 CFR 240.15a–6) under 

the Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.). 

Rule 15a-6 provides conditional 

exemptions from the requirement to 

register as a broker-dealer pursuant to 

Section 15 of the Securities Exchange 

Act for foreign broker-dealers that 

engage in certain specified activities 

involving U.S. persons. In particular, 

Rule 15a–6(a)(3) provides an exemption 

from broker-dealer registration for 

foreign broker-dealers that solicit and 

effect transactions with or for U.S. 

institutional investors or major U.S. 

institutional investors through a 

registered broker-dealer, provided that 

the U.S. broker-dealer, among other 

things, obtains certain information 

about, and consents to service of process 

from, the personnel of the foreign 

broker-dealer involved in such 

transactions, and maintains certain 

records in connection therewith. 

These requirements are intended to 

ensure (a) that the registered brokerdealer will receive notice of the identity 

of, and has reviewed the background of, 

foreign personnel who will contact U.S. 

investors, (b) that the foreign brokerdealer and its personnel effectively may 

be served with process in the event 

enforcement action is necessary, and (c) 

that the Commission has ready access to 

information concerning these persons 

and their U.S. securities activities. 

Commission staff estimates that 

approximately 2,000 U.S. registered 

broker-dealers will spend an average of 

two hours of clerical staff time and one 

hour of managerial staff time per year 

obtaining the information required by 

the rule, resulting in a total aggregate 

burden of 6,000 hours per year for 

complying with the rule. Assuming an 

hourly cost of $72 1 for a compliance 

clerk and $319 2 for a compliance 

manager, the resultant total internal 

labor cost of compliance for the 

respondents is $926,000 per year (2,000 

entities × ((2 hours/entity × $72/hour) + 

(1 hour per entity × $319/hour)) = 

$926,000). 

In general, the records to be 

maintained under Rule 15a–6 must be 

kept for the applicable time periods as 

set forth in Rule 17a–4 (17 CFR 

240.17a–4) under the Exchange Act or, 

with respect to the consents to service 

of process, for a period of not less than 

six years after the applicable person 

ceases engaging in U.S. securities 

activities. Reliance on the exemption set 

forth in Rule 15a–6 is voluntary, but if 

a foreign broker-dealer elects to rely on 

such exemption, the collection of 

information described therein is 

mandatory. The collection does not 

involve confidential information. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 


khammond on DSKJM1Z7X2PROD with NOTICES