Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 21957 

86 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. 

4See Securities Exchange Act Release No. 62886 

(Sept. 10, 2010), 75 FR 56613 (Sept. 16, 2010) (SR– 

CHX–2010–13). 

5See Securities Exchange Act Release No. 68802 

(Feb. 1, 2013), 78 FR 9092 (Feb. 7, 2013) (SR–CHX– 

2013–04). 

6See Securities Exchange Act Release No. 72434 

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

CHX–2014–06). 

7See Securities Exchange Act Release No. 67091 

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

‘‘Limit Up-Limit Down Release’’). 

8See Securities Exchange Act Release No. 71782 

(March 24, 2014), 79 FR 17630 (March 28, 2014) 

(SR–CHX–2014–04). 

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 No. SR– 

IEX–2022–02 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 No. 

SR–IEX–2022–02. 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 and on its 

internet website at www.iextrading.com. 

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 No. SR–IEX–2022–02, and 

should be submitted on or before May 

4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.86

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07853 Filed 4–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94639; File No. SR– 

NYSECHX–2022–05] 

Self-Regulatory Organizations; NYSE 

Chicago, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Current 

Pilot Program Related to Rule 7.10 

April 7, 2022. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on April 5, 

2022, the NYSE Chicago, Inc. (‘‘NYSE 

Chicago’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

current pilot program related to Rule 

7.10 (Clearly Erroneous Executions) to 

the close of business on July 20, 2022. 

The proposed rule change is available 

on the Exchange’s website at 

www.nyse.com, at the principal office of 

the Exchange, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to extend the current pilot 

program related to Rule 7.10 (Clearly 

Erroneous Executions) to the close of 

business on July 20, 2022. The pilot 

program is currently due to expire on 

April 20, 2022. 

On September 10, 2010, the 

Commission approved, on a pilot basis, 

changes to Article 20, Rule 10 that, 

among other things: (i) Provided for 

uniform treatment of clearly 

erroneous execution reviews in multistock events involving twenty or more 

securities; and (ii) reduced the ability of 

the Exchange to deviate from the 

objective standards set forth in the rule.4

In 2013, the Exchange adopted a 

provision designed to address the 

operation of the Plan.5 Finally, in 2014, 

the Exchange adopted two additional 

provisions providing that: (i) A series of 

transactions in a particular security on 

one or more trading days may be viewed 

as one event if all such transactions 

were effected based on the same 

fundamentally incorrect or grossly 

misinterpreted issuance information 

resulting in a severe valuation error for 

all such transactions; and (ii) in the 

event of any disruption or malfunction 

in the operation of the electronic 

communications and trading facilities of 

an Exchange, another SRO, or 

responsible single plan processor in 

connection with the transmittal or 

receipt of a trading halt, an Officer, 

acting on his or her own motion, shall 

nullify any transaction that occurs after 

a trading halt has been declared by the 

primary listing market for a security and 

before such trading halt has officially 

ended according to the primary listing 

market.6

These changes were originally 

scheduled to operate for a pilot period 

to coincide with the pilot period for the 

Plan to Address Extraordinary Market 

Volatility (the ‘‘Limit Up-Limit Down 

Plan’’ or ‘‘LULD Plan’’),7 including any 

extensions to the pilot period for the 

LULD Plan.8 In April 2019, the 

Commission approved an amendment to 

the LULD Plan for it to operate on a 


jspears on DSK121TN23PROD with NOTICES1
21958 Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 

9See Securities Exchange Act Release No. 85623 

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

(approving Eighteenth Amendment to LULD Plan). 

10See Securities Exchange Act Release No. 85533 

(April 5, 2019), 84 FR 14701 (April 11, 2019) (SR– 

NYSECHX–2019–04). 

11See Securities Exchange Act Release No. 87264 

(October 9, 2019), 84 FR 55345 (October 16, 2019) 

(SR–NYSECHX–2019–08). Article 20, Rule 10 is no 

longer applicable to any securities that trade on the 

Exchange. 

12See Securities Exchange Act Release No. 87351 

(October 18, 2019), 84 FR 57068 (October 24, 2019) 

(SR–NYSECHX–2019–13). 

13See Securities Exchange Act Release No. 88591 

(April 8, 2020), 85 FR 20771 (April 14, 2020) (SR– 

NYSECHX–2020–09). 

14See Securities Exchange Act Release No. 90156 

(October 13, 2020), 85 FR 66384 (October 19, 2020) 

(SR–NYSECHX–2020–29). 

15See Securities Exchange Act Release No. 91550 

(April 14, 2021), 86 FR 20560 (April 20, 2021) (SR– 

NYSECHX–2021–06). 

16See Securities Exchange Act Release No. 93360 

(October 15, 2021), 86 FR 58313 (October 21, 2021) 

(SR–NYSECHX–2021–15). 

17See supra notes 4–6. The prior versions of 

paragraphs (c), (e)(2), (f), and (g) generally provided 

greater discretion to the Exchange with respect to 

breaking erroneous trades. 

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

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

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

21 17 CFR 240.19b–4(f)(6). 

22 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Commission 

has waived the five-day prefiling requirement in 

this case. 

23 17 CFR 240.19b–4(f)(6). 

24 17 CFR 240.19b–4(f)(6)(iii). 

permanent, rather than pilot, basis.9 In 

light of that change, the Exchange 

amended Article 20, Rule 10 to untie the 

pilot program’s effectiveness from that 

of the LULD Plan and to extend the 

pilot’s effectiveness to the close of 

business on October 18, 2019.10 After 

the Commission approved the 

Exchange’s proposal to transition to 

trading on Pillar,11 the Exchange 

amended the corresponding Pillar 

rule—Rule 7.10—to extend the pilot’s 

effectiveness to the close of business on 

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

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

and April 20, 2022.16

The Exchange now proposes to amend 

Rule 7.10 to extend the pilot’s 

effectiveness for a further three months 

until the close of business on July 20, 

2022. If the pilot period is not either 

extended, replaced or approved as 

permanent, the prior versions of 

paragraphs (c), (e)(2), (f), and (g) of 

Article 20, Rule 10 prior to being 

amended by SR–CHX–2010–13 shall be 

in effect, and the provisions of 

paragraphs (i) through (k) shall be null 

and void.17 In such an event, the 

remaining sections of Article 20, Rule 

10 would continue to apply to all 

transactions executed on the Exchange. 

The Exchange understands that the 

other national securities exchanges and 

Financial Industry Regulatory Authority 

(‘‘FINRA’’) will also file similar 

proposals to extend their respective 

clearly erroneous execution pilot 

programs, the substance of which are 

identical to Rule 7.10. 

The Exchange does not propose any 

additional changes to Rule 7.10. 

Extending the effectiveness of these 

rules for an additional three months will 

provide the Exchange and other selfregulatory organizations additional time 

to consider whether further 

amendments to the clearly erroneous 

execution rules are appropriate. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

requirements of Section 6(b) of the 

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

the Act,19 in particular, in that it is 

designed to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, to promote just and equitable 

principles of trade, and, in general, to 

protect investors and the public interest 

and not to permit unfair discrimination 

between customers, issuers, brokers, or 

dealers. The Exchange believes that the 

proposed rule change promotes just and 

equitable principles of trade in that it 

promotes transparency and uniformity 

across markets concerning review of 

transactions as clearly erroneous. The 

Exchange believes that extending the 

clearly erroneous execution pilot under 

Rule 7.10 for an additional three months 

would help assure that the 

determination of whether a clearly 

erroneous trade has occurred will be 

based on clear and objective criteria, 

and that the resolution of the incident 

will occur promptly through a 

transparent process. The proposed rule 

change would also help assure 

consistent results in handling erroneous 

trades across the U.S. equities markets, 

thus furthering fair and orderly markets, 

the protection of investors and the 

public interest. Based on the foregoing, 

the Exchange believes the amended 

clearly erroneous executions rule 

should continue to be in effect on a pilot 

basis while the Exchange and other selfregulatory organizations consider 

whether further amendments to these 

rules are appropriate. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The proposal 

would ensure the continued, 

uninterrupted operation of harmonized 

clearly erroneous execution rules across 

the U.S. equities markets while the 

Exchange and other self-regulatory 

organizations consider whether further 

amendments to these rules are 

appropriate. The Exchange understands 

that the other national securities 

exchanges and FINRA will also file 

similar proposals to extend their 

respective clearly erroneous execution 

pilot programs. Thus, the proposed rule 

change will help to ensure consistency 

across market centers without 

implicating any competitive issues. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 20 and Rule 

19b–4(f)(6) thereunder.21 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder.22

A proposed rule change filed under 

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

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),24 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange asked that the 

Commission waive the 30 day operative 

delay so that the proposal may become 

operative immediately upon filing. 

Waiver of the 30-day operative delay 

would extend the protections provided 

by the current pilot program, without 

any changes, while the Exchange and 

other self-regulatory organizations 

consider whether further amendments 


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Federal Register / Vol. 87, No. 71 / Wednesday, April 13, 2022 / Notices 21959 

25For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

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

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. 92563 

(August 4, 2021), 86 FR 43704 (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 93057 

(September 20, 2021), 86 FR 53128 (September 24, 

2021). 

6 15 U.S.C. 78s(b)(2)(B). 

7See Securities Exchange Act Release No. 93466 

(October 29, 2021), 86 FR 60955 (November 4, 

2021). 

8Amendment No. 1 makes certain nonsubstantive clarifying changes from the original 

filing (including alphabetizing the proposed 

definitions and relocating the description of 

Complex Only Orders), and makes the following 

substantive changes from the original filing: (1) 

Adds new definitions of Away Market Deviation 

and Leg Ratios; (2) revises the definition of DBBO 

to add cross-reference to ABBO, as that term is 

defined in the Single-Leg Pillar Filing, and to 

include details regarding market conditions that 

impact the trading of complex strategies; (3) revises 

the definition of an ECO to remove reference to 

Stock/Option Orders and Stock/Complex Orders; 

(4) adds Complex QCCs as an ECO order type and 

specifies that an ECO designated as FOK must also 

be designated as a Complex Only Order; (5) 

specifies that an ECO will not trade with leg market 

orders designated as FOK; (6) specifies 

circumstances when an ECO may trade with 

another ECO at the leg market price and when an 

ECO must price improve at least a portion of the 

leg markets when there is displayed Customer 

interest on the Exchange; and (7) modifies the 

description of how a COA Order trades on arrival 

and prior to initiating a COA. Amendment No. 1 is 

available on the Commission’s website at: https:// 

www.sec.gov/comments/sr-nysearca-2021-68/ 

srnysearca202168.htm. 

9Amendment No. 2 revises proposed Exchange 

Rule 6.91P–O(c)(4) to provide that bids and offers 

for complex strategies may be expressed in one cent 

($0.01) increments regardless of the MPV otherwise 

applicable to the individual leg(s) of the ECO. The 

Exchange notes that this provision is consistent 

with the rules of other options exchanges, including 

Nasdaq ISE, Options 3, Section 14 (c)(1). In 

addition, Amendment No. 2 revises proposed 

Exchange Rule 6.91P–O(d)(1)(B) to delete an 

erroneous cross-reference to proposed Exchange 

Rule 6.91P–O(a)(5)(B). Deleting the erroneous crossreference will make clear that the Exchange will not 

open a complex strategy in the absence of an 

Exchange BO or ABO, even if there is an Exchange 

BB or an ABB. Amendment No. 2 is available on 

the Commission’s website at: https://www.sec.gov/ 

comments/sr-nysearca-2021-68/ 

srnysearca202168.htm. 

to these rules are appropriate. Therefore, 

the Commission hereby waives the 30- 

day operative delay and designates the 

proposed rule change as operative upon 

filing.25

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

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

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSECHX–2022–05 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSECHX–2022–05. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

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–NYSECHX–2022–05 

and should be submitted on or before 

May 4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07845 Filed 4–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94637; File No. SR– 

NYSEArca–2021–68] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of 

Amendment Nos. 1 and 2 and Order 

Granting Accelerated Approval of a 

Proposed Rule Change, as Modified by 

Amendment Nos. 1 and 2, To Adopt 

New Exchange Rule 6.91P–O 

April 7, 2022. 

I. Introduction 

On July 23, 2021, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or the ‘‘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 adopt new Exchange Rule 

6.91P–O to govern the trading of 

Electronic Complex Orders (‘‘ECOs’’) on 

the Exchange’s Pillar technology 

platform and to make conforming 

amendments to Exchange Rule 6.47A– 

O. The proposed rule change was 

published for comment in the Federal 

Register on August 10, 2021.3 The 

Commission received no comments 

regarding the proposal. On September 

20, 2021, pursuant to Section 19(b)(2) of 

the Act,4 the Commission extended the 

time for Commission action on the 

proposal until November 8, 2021.5 On 

October 29, 2021, the Commission 

issued an order instituting proceedings 

pursuant to Section 19(b)(2)(B) of the 

Act 6 to determine whether to approve 

or disapprove the proposed rule 

change.7 On March 22, 2022, the 

Exchange filed Amendment No. 1 to the 

proposal, which supersedes the original 

filing in its entirety.8 April 4, 2022, the 

Exchange filed Amendment No. 2 to the 

proposal.9 The Commission is 

publishing this notice to solicit 

comment on Amendment Nos. 1 and 2 

to the proposed rule change from 

interested persons and is approving the 

proposed rule change, as modified by 


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