22594 Federal Register / Vol. 87, No. 73 / Friday, April 15, 2022 / Notices 

33 17 CFR 240.19b–4(f)(6). 

34 17 CFR 240.19b–4(f)(6)(iii). 

35See supra Item II. 

36See SR–FINRA–2022–004, 87 FR at 16264 

(noting the same with respect to the health and 

safety of FINRA employees in granting FINRA’s 

request to waive the 30-day operative delay so that 

SR–FINRA–2022–004 would become operative 

immediately upon filing). 

37See supra note 4. 

38See supra note 5. As noted above, the Exchange 

states that if it requires temporary relief from the 

rule requirements identified in this proposal 

beyond July 31, 2022 it may submit a separate rule 

filing to extend the effectiveness of the temporary 

relief under these rules. 

39For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

40 15 U.S.C. 78s(b)(2)(B). 

41 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 33 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),34 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The Exchange 

has indicated that the proposed rule 

change to extend the expiration date 

will continue to prevent unnecessary 

impediments to its critical adjudicatory 

processes, and its ability to fulfill its 

statutory obligations to protect investors 

and maintain fair and orderly markets, 

that would otherwise result if the 

temporary amendments were to expire 

on March 31, 2022.35 Importantly, the 

Exchange has also stated that further 

extending the relief provided initially in 

SR–NYSEAMER–2020–69 immediately 

upon filing and without a 30-day 

operative delay will allow the Exchange 

to continue critical adjudicatory and 

review processes in a reasonable and 

fair manner and meet its critical 

investor protection goals, while also 

following best practices with respect to 

the health and safety of hearing 

participants.36 The Commission also 

notes that this proposal extends without 

change the temporary relief previously 

provided by SR–NYSEAMER–2020– 

69.37 As proposed, the changes would 

be in place through July 31, 2022 and 

the amended rules will revert back to 

their original state at the conclusion of 

the temporary relief period and, if 

applicable, any extension thereof.38 For 

these reasons, the Commission believes 

that waiver of the 30-day operative 

delay for this proposal is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative upon filing.39

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) 40 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– 

NYSEAMER–2022–16 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–NYSEAMER–2022–16. 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–NYSEAMER–2022–16 and 

should be submitted on or before May 

6, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.41

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08064 Filed 4–14–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94670; File No. SR–CBOE– 

2022–017] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule 

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, 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, 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. 


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I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

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

or ‘‘Cboe Options’’) proposes to amend 

its Fees Schedule. 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://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.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 its 

Fees Schedule in connection with 

certain LMM Incentive Programs, 

effective April 1, 2022. 

The Exchange proposes to amend its 

Regular Trading Hours (‘‘RTH’’) SPESG 

LMM Incentive Program, MRUT LMM 

Incentive Program and MSCI LMM 

Incentive Program. All three LMM 

Incentive Programs provide a rebate to 

Trading Permit Holders (‘‘TPHs’’) with 

LMM appointments to the respective 

incentive program that meet certain 

quoting standards in the applicable 

series in a month. The Exchange notes 

that meeting or exceeding the quoting 

standards (both current and as 

proposed; described in further detail 

below) in each of the LMM Incentive 

Program products to receive the 

applicable rebate (both currently offered 

and as proposed; described in further 

detail below) is optional for an LMM 

appointed to a program. Rather, an 

LMM appointed to an incentive program 

is eligible to receive the corresponding 

rebate if it satisfies the applicable 

quoting standards, which the Exchange 

believes encourages appointed LMMs to 

provide liquidity in the applicable class 

and trading session (i.e., RTH). The 

Exchange may consider other 

exceptions to the programs’ quoting 

standards based on demonstrated legal 

or regulatory requirements or other 

mitigating circumstances. In calculating 

whether an LMM appointed to an 

incentive program meets the applicable 

program’s quoting standards each 

month, the Exchange excludes from the 

calculation in that month the business 

day in which the LMM missed meeting 

or exceeding the quoting standards in 

the highest number of the applicable 

series. 

The proposed rule change amends the 

RTH SPESG LMM Incentive Program. 

Currently, the RTH SPESG LMM 

Incentive Program provides that if, for 

SPESG, the appointed LMM provides 

continuous electronic quotes during 

RTH that meet or exceed the above 

heightened quoting standards in at least 

60% of SPESG series 90% of the time 

in a given month, the LMM will receive 

a rebate for that month in the amount 

of $20,000 (or pro-rated amount if an 

appointment begins after the first 

trading day of the month or ends prior 

to the last trading day of the month) for 

that month. The program additionally 

provides that, if the appointed LMM 

meets or exceeds the heightened quoting 

standards in a given month, the LMM 

will receive the monthly average daily 

volume (‘‘ADV’’) payment amount that 

corresponds to the level of ADV 

provided by the LMM in SPESG for that 

month per the SPESG Volume Incentive 

Pool program. The proposed rule change 

reduces the monthly rebate offered 

under the program from $20,000 to 

$10,000. The proposed rule change also 

amends certain quote sizes in the 

program’s heightened quoting 

requirements. Specifically, the proposed 

rule change marginally decreases certain 

quote sizes, thus easing the heightened 

quoting standards in a manner that 

makes it easier for appointed LMMs to 

achieve such requirements. The 

program’s current heightened quoting 

requirements are as follows: 

Premium level 

Expiring Near term Mid term Long term 

7 days or less 8 days to 60 days 61 days to 270 days 271 days or greater 

Width Size Width Size Width Size Width Size 

$0.00–$5.00 ..................... $0.50 10 $0.40 25 $0.60 15 $1.00 10 

$5.01–$15.00 ................... 2.00 7 1.60 18 2.40 11 4.00 7 

$15.01–$50.00 ................. 5.00 5 4.00 13 6.00 8 10.00 5 

$50.01–$100.00 ............... 10.00 3 8.00 8 12.00 5 20.00 3 

$100.01–$200.00 ............. 20.00 2 16.00 5 24.00 3 40.00 2 

Greater than $200.00 ....... 30.00 1 24.00 3 36.00 1 60.00 1 

The proposed changes to the 

program’s heightened quoting 

requirements are as follows (proposed 

sizes are denoted with an asterisk): 

Premium level 

Expiring Near term Mid term Long term 

7 days or less 8 days to 60 days 61 days to 270 days 271 days or greater 

Width Size Width Size Width Size Width Size 

$0.00–$5.00 ..................... $0.50 10 $0.40 * 15 $0.60 * 10 $1.00 * 5 

$5.01–$15.00 ................... 2.00 * 5 1.60 * 10 2.40 * 10 4.00 * 5 

$15.01–$50.00 ................. 5.00 5 4.00 * 10 6.00 * 5 10.00 5 

$50.01–$100.00 ............... 10.00 * 1 8.00 * 5 12.00 5 20.00 * 1 

$100.01–$200.00 ............. 20.00 * 1 16.00 * 1 24.00 * 1 40.00 * 1 


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22596 Federal Register / Vol. 87, No. 73 / Friday, April 15, 2022 / Notices 

Premium level 

Expiring Near term Mid term Long term 

7 days or less 8 days to 60 days 61 days to 270 days 271 days or greater 

Width Size Width Size Width Size Width Size 

Greater than $200.00 ....... 30.00 1 24.00 * 1 36.00 1 60.00 1 

Lastly, regarding the RTH SPESG 

LMM Incentive Program, the proposed 

rule change amends the payments 

provided under the SPESG LMM 

Volume Incentive Pool. Currently, the 

incentive pool offers $5,000 where an 

LMM submits an ADV in SPESG of 

1,000 to 4,999 contracts in a month, 

$15,000 for an ADV of 5,000 to 10,000 

contracts in a month, and $20,000 for an 

ADV of greater than 10,000 contracts in 

a month. The proposed rule change 

increased the payments so that an LMM 

that submits an ADV in SPESG of 1,000 

to 4,999 contracts in a month receives 

a payment of $10,000, an ADV of 5,000 

to 10,000 contracts in a month, a 

payment of $20,000 and an ADV of 

greater than 10,000 contracts in a 

month, a payment of $25,000. The 

proposed rule change to increase the 

SPESG Volume Incentive Pool payments 

is designed to incentivize appointed 

LMMs to further increase the provision 

of liquidity in SPESG options to meet 

the same ADV thresholds in return for 

increased corresponding payments. 

Increased liquidity in SPESG options 

would, in turn, provide greater trading 

opportunities, added market 

transparency and enhanced price 

discovery for all market participants in 

SPESG. 

The proposed rule change amends the 

MRUT LMM Incentive Program. 

Currently, the MRUT LMM Incentive 

Program provides that, for MRUT, if the 

appointed LMM provides continuous 

electronic quotes during RTH that meet 

or exceed the heightened quoting 

standards in at least 99% of the MRUT 

series 90% of the time in a given month, 

the LMM will receive a rebate for that 

month in the amount of $25,000 (or prorated amount if an appointment begins 

after the first trading day of the month 

or ends prior to the last trading day of 

the month). The proposed rule change 

reduces the monthly rebate provided 

under the program from $25,000 to 

$15,000. Additionally, the proposed 

rule change also slightly increases the 

quote width requirement under the near 

term expiration category (15 to 60 days) 

for the premium level of $1.01 to $3.00, 

from a quote width of $0.13 to $0.14. 

Thus, the proposed rule change makes 

the quote size requirement under this 

expiration and premium category 

slightly easier to achieve. 

The proposed rule change amends the 

MSCI LMM Incentive Program. 

Currently, the MSCI LMM Incentive 

Program provides that, for MXEF and 

MXEA (i.e., MSCI options), if the 

appointed LMM provides continuous 

electronic quotes during RTH that meet 

or exceed the heightened quoting 

standards in at least 90% of the MXEA 

and MXEF series 80% of the time in a 

given month, the LMM will receive a 

rebate for that month in the amount of 

$20,000 per class, per month (or prorated amount if an appointment begins 

after the first trading day of the month 

or ends prior to the last trading day of 

the month). The proposed rule change 

reduces the monthly rebate provided 

under the program from $25,000 to 

$15,000. The proposed rule change also 

amends a quote width and certain sizes 

in the program’s heightened quoting 

requirements. Specifically, by 

marginally increasing a quote width and 

marginally decreases certain quote sizes, 

the proposed rule change eases the 

heightened quoting standards in a 

manner that makes it easier for 

appointed LMMs to achieve such 

requirements. The program’s current 

heightened quoting requirements are as 

follows: 

Premium level 

Expiring Near term Mid term Long term 

6 days or less 7 days to 60 days 61 days to 270 days 271 days or greater 

Width Size Width Size Width Size Width Size 

$0.00–$5.00 ..................... $2.50 5 $1.05 12 $2.50 10 $5.00 10 

$5.01–$15.00 ................... 6.00 3 2.50 9 5.00 8 10.00 7 

$15.01–$50.00 ................. 15.00 2 4.50 7 9.00 7 20.00 5 

$50.01–$100.00 ............... 25.00 1 15.00 5 20.00 5 30.00 3 

$100.01–$200.00 ............. 40.00 1 25.00 2 35.00 2 48.00 2 

Greater than $200.00 ....... 60.00 1 40.00 1 50.00 1 72.00 1 

The proposed changes to the 

program’s heightened quoting 

requirements are as follows (proposed 

width and sizes are denoted with an 

asterisk): 

Premium level 

Expiring Near term Mid term Long term 

6 days or less 7 days to 60 days 61 days to 270 days 271 days or greater 

Width Size Width Size Width Size Width Size 

$0.00–$5.00 ..................... $2.50 5 * $1.10 * 10 $2.50 * 5 $5.00 * 5 

$5.01–$15.00 ................... 6.00 3 2.50 * 10 5.00 * 5 10.00 * 5 

$15.01–$50.00 ................. 15.00 2 4.50 * 5 9.00 * 5 20.00 5 

$50.01–$100.00 ............... 25.00 1 15.00 5 20.00 5 30.00 3 

$100.01–$200.00 ............. 40.00 1 25.00 2 35.00 2 48.00 2 

Greater than $200.00 ....... 60.00 1 40.00 1 50.00 1 72.00 1 


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3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(5). 

5 15 U.S.C. 78f(b)(4). 

6See Cboe Options Fees Schedule, ‘‘NANOS 

LMM Incentive Program’’, ‘‘GTH1 VIX/VIXW LMM 

Incentive Program’’, ‘‘GTH2 VIX/VIXW LMM 

Incentive Program’’, ‘‘GTH1 SPX/SPXW LMM 

Incentive Program’’, and ‘‘GTH2 SPX/SPXW LMM 

Incentive Program’’, all of which range by $5,000 

increments. 

The proposed rule change also adopts 

a performance payment under the MSCI 

LMM Incentive Program, which 

provides that, in addition to the above 

rebate, the LMM with the highest 

performance in satisfying the above 

heightened quoting standards, measured 

independently per class, in a month will 

receive a performance payment of 

$10,000 per class for that month. In 

order to be eligible to receive the 

performance payment in a month, an 

LMM must meet or exceed the above 

heightened quoting standards in that 

month. Highest performance is 

measured as the cumulative sum of 

series in which an LMM meets or 

exceeds the heightened quoting 

requirements by the total series each 

day (excluding the day in which an 

LMM missed meeting or exceeding the 

heightened quoting standard in the 

highest number of series). The proposed 

performance payment offered by the 

MSCI LMM Incentive Program is 

designed to incentivize LMMs 

appointed to the program to increase the 

provision of liquidity in MXEA and 

MXEF by encouraging appointed LMMs 

to compete each month to achieve the 

highest performance and receive the 

additional performance payment. 

Increased liquidity in MSCI options 

would, in turn, provide greater trading 

opportunities, added market 

transparency and enhanced price 

discovery for all market participants in 

MSCI options. 

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.3 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 4 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 

Section 6(b)(4) of the Act,5 which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. 

Regarding the RTH SPESG, MRUT 

and MSCI LMM Incentive Programs 

generally, the Exchange believes it is 

reasonable, equitable and not unfairly 

discriminatory to continue to offer these 

financial incentives, including as 

amended, to LMMs appointed to the 

programs, because it benefits all market 

participants trading in the 

corresponding products during RTH. 

These incentive programs encourage the 

LMMs appointed to such programs to 

satisfy the heightened quoting 

standards, which may increase liquidity 

and provide more trading opportunities 

and tighter spreads. Indeed, the 

Exchange notes that these LMMs serve 

a crucial role in providing quotes and 

the opportunity for market participants 

to trade SPESG, MRUT, MXEA and 

MXEF options, as applicable, which can 

lead to increased volume, providing for 

robust markets. The Exchange 

ultimately offers the LMM Incentive 

Programs, as amended, to sufficiently 

incentivize LMMs appointed to each 

incentive program to provide key 

liquidity and active markets in the 

corresponding program products during 

the corresponding trading sessions, and 

believes that these incentive programs, 

as amended, will continue to encourage 

increased quoting to add liquidity in 

each of the corresponding program 

products, thereby protecting investors 

and the public interest. The Exchange 

also notes that an LMM appointed to an 

incentive program may undertake added 

costs each month to satisfy that 

heightened quoting standards (e.g., 

having to purchase additional logical 

connectivity). 

The Exchange believes that the 

proposed changes to the LMM Incentive 

Programs are reasonable. The proposed 

rule change to reduce the monthly 

rebate amounts offered under each of 

the RTH SPESG, MRUT and MSCI LMM 

Incentive Programs is reasonable as the 

proposed rebates remain within a 

comparable realm of the rebates 

currently offered across the Exchange’s 

LMM Incentive Programs applicable to 

other exclusively-listed products,6 and 

LMMs appointed to the respective 

programs will continue to receive a 

monthly rebate, albeit at a lower 

amount, for meeting or exceeding the 

applicable program’s heighten quoting 

requirements, of which some standards 

are being eased in difficulty, as 

proposed. The Exchange believes it is 

reasonable to marginally decrease 

certain quote size requirements (across 

the three programs’ heightened quoting 

requirements) and marginally increase a 

quote size requirement (in the MSCI 

LMM Incentive Program’s heightened 

quoting requirements), as these changes 

are reasonably designed to slightly ease 

the difficulty in meeting the heightened 

quoting requirements offered under 

these programs (for which an appointed 

LMM receives the proposed respective 

rebates), which, in turn, provides 

increased incentive for LMMs appointed 

to these programs to provide significant 

liquidity in SPESG, MRUT and MSCI 

options during RTH. Further, the 

Exchange believes that increasing the 

SPESG Volume Incentive Pool payments 

is reasonably designed to incentivize 

LMMs appointed to the RTH SPESG 

LMM Incentive Program to provide the 

current levels of ADV in SPESG, thereby 

providing significant liquidity in SPESG 

options during RTH, in order to receive 

the proposed increased payments. The 

Exchange notes that the MRUT LMM 

Incentive Program also offers a volume 

incentive pool structured with 

comparable payments for corresponding 

ADV. Finally, the Exchange believes 

that the proposed performance payment 

offered under the MSCI LMM Incentive 

Program is reasonably designed to 

incentivize LMMs appointed to the 

program to increase the provision of 

liquidity in MXEA and MXEF options 

by encouraging appointed LMMs to 

compete each month to achieve the 

highest performance and receive the 

additional performance payment. 

Increased liquidity in MSCI options 

would, in turn, provide greater trading 

opportunities, added market 

transparency and enhanced price 

discovery to the benefit of all market 

participants in MSCI options. 

The Exchange believes that the 

proposed changes to the LMM Incentive 

Programs are equitable and not unfairly 

discriminatory. The Exchange believes 

that it is equitable and not unfairly 

discriminatory to amend the month 

rebates offered under the RTH SPESG, 

MRUT and MSCI LMM Incentive 

Programs, amend certain quoting sizes 

and a quote width across the three 

programs, to amend the volume 

incentive pool payments for the RTH 

SPESG LMM Incentive Program and to 

adopt a performance payment under the 


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7See Cboe Global Markets U.S. Options Market 

Volume Summary, Month-to-Date (March 28, 2022), 

available at https://www.cboe.com/us/options/ 

market_statistics/. 

8See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

9NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 

2010) (quoting Securities Exchange Act Release No. 

59039 (December 2, 2008), 73 FR 74770, 74782–83 

(December 9, 2008) (SR–NYSEArca–2006–21)). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f). 

MSCI LMM Incentive Program, because 

such rebates, quote sizes and width, 

volume pool program payments and 

performance payment will equally 

apply to any and all TPHs with LMM 

appointments to the RTH SPESG, MRUT 

and MSCI LMM Incentive Programs, as 

applicable, that seek to meet the 

programs’ heightened quoting standards 

in order to receive the rebates (as 

proposed) offered under each respective 

program. The Exchange additionally 

notes that, if an LMM appointed to any 

of the LMM Incentive Programs does not 

satisfy the corresponding heightened 

quoting standard for any given month, 

then it simply will not receive the rebate 

offered by the respective program for 

that month. 

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 intramarket or 

intermarket 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 will impose any 

burden on intramarket competition 

because the proposed changes to 

existing LMM Incentive Programs will 

apply to all LMMs appointed to the 

applicable program classes (i.e., MRUT, 

MXEF, MXEA and SPESG) in a uniform 

manner. To the extent these LMMs 

appointed to an incentive program 

receive a benefit that other market 

participants do not, as stated, these 

LMMs in their role as Mark-Makers on 

the Exchange have different obligations 

and are held to different standards. For 

example, Market-Makers play a crucial 

role in providing active and liquid 

markets in their appointed products, 

thereby providing a robust market 

which benefits all market participants. 

Such Market-Makers also have 

obligations and regulatory requirements 

that other participants do not have. The 

Exchange also notes that an LMM 

appointed to an incentive program may 

undertake added costs each month to 

satisfy that heightened quoting 

standards (e.g., having to purchase 

additional logical connectivity). The 

Exchange also notes that the incentive 

programs are designed to attract 

additional order flow to the Exchange, 

wherein greater liquidity benefits all 

market participants by providing more 

trading opportunities, tighter spreads, 

and added market transparency and 

price discovery, and signals to other 

market participants to direct their order 

flow to those markets, thereby 

contributing to robust levels of liquidity. 

The Exchange does not believe that 

the proposed rule changes will impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed amendments to 

the LMM Incentive Programs apply only 

to products traded exclusively on Cboe 

Options. Additionally, the Exchange 

notes that it operates in a highly 

competitive market. TPHs have 

numerous alternative venues that they 

may participate on and direct their 

order flow, including 15 other options 

exchanges, as well as off-exchange 

venues, where competitive products are 

available for trading. Based on publicly 

available information, no single options 

exchange has more than 16% of the 

market share.7 Therefore, no exchange 

possesses significant pricing power in 

the execution of option order flow. 

deed, participants can readily choose to 

send their orders to other exchange, 

and, additionally off-exchange venues, 

if they deem fee levels at those other 

venues to be more favorable. Moreover, 

the Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. 

Specifically, in Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues and, also, recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 8 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . . .’’.9 Accordingly, the 

Exchange does not believe its proposed 

fee change imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

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 

The foregoing rule change has become 

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

of the Act 10 and paragraph (f) of Rule 

19b–4 11 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 will institute proceedings 

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– 

CBOE–2022–017 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–2022–017. 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/ 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 73 / Friday, April 15, 2022 / Notices 22599 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 

4See Securities Exchange Act Release No. 62885 

(September 10, 2010), 75 FR 56641 (September 16, 

2010) (Order Approving File No. SR–FINRA–2010– 

032). 

5See Securities Exchange Act Release No. 68808 

(February 1, 2013), 78 FR 9083 (February 7, 2013) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2013–012). 

6See Securities Exchange Act Release No. 72434 

(June 19, 2014), 79 FR 36110 (June 25, 2014) (Order 

Approving File No. SR–FINRA–2014–021). 

7See Securities Exchange Act Release No. 85612 

(April 11, 2019), 84 FR 16107 (April 17, 2019) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2019–011). 

8See Securities Exchange Act Release No. 87344 

(October 18, 2019), 84 FR 57076 (October 24, 2019) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2019–025). 

9See Securities Exchange Act Release No. 88495 

(March 27, 2020), 85 FR 18608 (April 2, 2020) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2020–008). 

10See Securities Exchange Act Release No. 90219 

(October 19, 2020), 85 FR 67574 (October 23, 2020) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2020–036). 

11See Securities Exchange Act Release No. 91373 

(March 19, 2021), 86 FR 16003 (March 25, 2021) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2021–004). 

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–CBOE–2022–017 and 

should be submitted on or before May 

6, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08067 Filed 4–14–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94673; File No. SR–FINRA– 

2022–008] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Current 

Pilot Program Related to FINRA Rule 

11892 (Clearly Erroneous Transactions 

in Exchange-Listed Securities) 

April 11, 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 April 6, 

2022, the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. 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 

FINRA is proposing to extend the 

current pilot program related to FINRA 

Rule 11892 (Clearly Erroneous 

Transactions in Exchange-Listed 

Securities) (‘‘Clearly Erroneous 

Transaction Pilot’’ or ‘‘Pilot’’) until July 

20, 2022. 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

FINRA is proposing a rule change to 

extend the current pilot program related 

to FINRA Rule 11892 governing clearly 

erroneous transactions in exchangelisted securities until the close of 

business on July 20, 2022. Extending the 

Pilot would provide FINRA and the 

national securities exchanges additional 

time to consider a permanent proposal 

for clearly erroneous transaction 

reviews. 

On September 10, 2010, the 

Commission approved, on a pilot basis, 

changes to FINRA Rule 11892 that, 

among other things: (i) Provided for 

uniform treatment of clearly 

erroneous transaction reviews in multistock events involving twenty or more 

securities; and (ii) reduced the ability of 

FINRA to deviate from the objective 

standards set forth in the rule.4 In 2013, 

FINRA adopted a provision designed to 

address the operation of the Plan to 

Address Extraordinary Market Volatility 

Pursuant to Rule 608 of Regulation NMS 

(‘‘Plan’’).5 Finally, in 2014, FINRA 

adopted two additional provisions 

addressing (i) erroneous transactions 

that occur over one or more trading days 

that were based on the same 

fundamentally incorrect or grossly 

misinterpreted information resulting in 

a severe valuation error; and (ii) a 

disruption or malfunction in the 

operation of the facilities of a selfregulatory organization or responsible 

single plan processor in connection 

with the transmittal or receipt of a 

trading halt.6

On April 9, 2019, FINRA filed a 

proposed rule change to untie the 

effectiveness of the Clearly Erroneous 

Transaction Pilot from the effectiveness 

of the Plan, and to extend the Pilot’s 

effectiveness to the close of business on 

October 18, 2019.7 On October 10, 2019, 

FINRA filed a proposed rule change to 

extend the Pilot’s effectiveness until 

April 20, 2020.8 On March 18, 2020, 

FINRA filed a proposed rule change to 

extend the pilot’s effectiveness until 

October 20, 2020.9 On October 16, 2020, 

FINRA filed a proposed rule change to 

extend the Pilot’s effectiveness until 

April 20, 2021.10 On March 15, 2021, 

FINRA filed a proposed rule change to 

extend the Pilot’s effectiveness until 

October 20, 2021.11 On October 5, 2021, 

FINRA filed a proposed rule change to 

extend the Pilot’s effectiveness until 


jspears on DSK121TN23PROD with NOTICES1