25070 Federal Register / Vol. 87, No. 81 / Wednesday, April 27, 2022 / Notices 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3An ‘‘Order Type’’ is a standardized set of 

instructions associated with an Order that define 

how it will behave with respect to pricing, 

execution, and/or posting to the Exchange Book 

when submitted to the Exchange. See Equity 1, 

Section 1(a)(11). 

4An ‘‘Order Attribute’’ is a further set of variable 

instructions that may be associated with an Order 

to further define how it will behave with respect to 

pricing, execution, and/or posting to the Exchange 

Book when submitted to the Exchange. See id. 

5The RASH (Routing and Special Handling) 

Order entry protocol is a proprietary protocol that 

allows members to enter Orders, cancel existing 

Orders and receive executions. RASH allows 

participants to use advanced functionality, 

including discretion, random reserve, pegging and 

routing. See http://nasdaqtrader.com/content/ 

technicalsupport/specifications/TradingProducts/ 

rash_sb.pdf. 

6The OUCH Order entry protocol is a proprietary 

protocol that allows subscribers to quickly enter 

orders into the System and receive executions. 

OUCH accepts limit Orders from members, and if 

there are matching Orders, they will execute. Nonmatching Orders are added to the Limit Order Book, 

a database of available limit Orders, where they are 

matched in price-time priority. OUCH only 

provides a method for members to send Orders and 

receive status updates on those Orders. See https:// 

www.nasdaqtrader.com/Trader.aspx?id=OUCH. 

7The Exchange designed the OUCH protocol to 

enable members to enter Orders quickly into the 

System. As such, the Exchange developed OUCH 

with simplicity in mind, and it therefore lacks more 

complex order handling capabilities. By contrast, 

the Exchange specifically designed RASH to 

support advanced functionality, including 

discretion, random reserve, pegging and routing. 

Once the System upgrades occur, then the Exchange 

intends to propose further changes to its Rules to 

permit participants to utilize OUCH, in addition to 

RASH, to enter order types that require advanced 

functionality. 

8The Exchange notes that its sister exchange, The 

Nasdaq Stock Market, LLC (‘‘Nasdaq), recently filed 

a similar proposed rule change with the 

Commission, see Securities Exchange Release No. 

34–94492 (March 23, 2022), 87 FR 18405 (March 30, 

2022) (SR–NASDAQ–2022–020), and that Nasdaq 

PHLX LLC plans to do the same in parallel with the 

Exchange. 

that it has sufficient time to consider the 

proposed rule change. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,5 designates June 9, 

2022, as the date by which the 

Commission shall either approve or 

disapprove, or institute proceedings to 

determine whether to disapprove, the 

proposed rule change (File No. SR– 

NASDAQ–2022–017). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08915 Filed 4–26–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94776; File No. SR–BX– 

2022–006] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Equity 4, Rule 

4756(a)(3), in Light of Planned 

Changes to the System as Well as To 

Address Existing Issues 

April 21, 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 11, 

2022, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 amend 

Equity 4, Rule 4756(a)(3), in light of 

planned changes to the System as well 

as to address existing issues, as 

described further below. The text of the 

proposed rule change is available on the 

Exchange’s website at https://

listingcenter.nasdaq.com/rulebook/bx/ 

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 

Presently, the Exchange is making 

functional enhancements and 

improvements to specific Order Types 3

and Order Attributes 4 that are currently 

only available via the RASH Order entry 

protocol.5 Specifically, the Exchange 

will be upgrading the logic and 

implementation of these Order Types 

and Order Attributes so that the features 

are more streamlined across the 

Exchange’s System and order entry 

protocols, and will enable the Exchange 

to process these Orders more quickly 

and efficiently. Additionally, this 

System upgrade will pave the way for 

the Exchange to enhance the OUCH 

Order entry protocol 6 so that 

Participants may enter such Order 

Types and Order Attributes via OUCH, 

in addition to the RASH Order entry 

protocol.7 The Exchange plans to 

implement its enhancement of the 

OUCH protocol sequentially, by Order 

Type and Order Attribute.8

To support and prepare for these 

upgrades and enhancements, the 

Exchange proposes to amend Rule 

4756(a)(3), which governs the entry of 

Orders, so that it aligns with how the 

System, once upgraded, will handle the 

partial cancellation of Orders to reduce 

their share size. The proposed filing also 

addresses issues with the existing Rule 

text and the current implementation of 

that Rule text by the System. 

In pertinent part, existing Rule 

4756(a)(3) states as follows, with respect 

how the Exchange handles partial Order 

cancellations to reduce share size: 

In addition, a partial cancellation of an 

Order to reduce its share size will not affect 

the priority of the Order on the book; 

provided, however, that such a partial 

cancellation may not be made with respect to 

a Pegged Order (including a Discretionary 

Order that is Pegged). 

The first clause of this text states the 

general rule that participants may 

instruct the Exchange to partially cancel 

their Orders in order to reduce share 

size, and when handling such partial 

cancellation instructions, the Exchange 

will adjust the size of the Orders 

without affecting their existing priority. 

The second clause states an exception to 

this general rule, which the Exchange 

intends to mean that when the Exchange 

processes partial cancellations of Orders 

with the Pegging Attribute (including 

Discretionary Orders with Pegging) that 

participants enter via RASH or FIX (as 

opposed to OUCH or FLITE), the 

partially cancelled Orders will lose their 

priority. 

Going forward, planned upgrades will 

provide for the Exchange to process 

partial cancellations of all Order Types 

and Attributes entered through all of its 

Order Entry Protocols, including RASH, 

OUCH, FIX, and FLITE, and it will do 

so without loss of priority, such that the 


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9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

existing exception to the general rule in 

4756(a)(3) will no longer be necessary. 

Thus, the Exchange proposes to 

eliminate this exception by deleting it 

from the Rule. This proposal will 

provide better outcomes to participants 

by enabling them to reduce the share 

size of their Orders without the need to 

sacrifice the priority of their Orders. 

The Exchange believes that it is 

reasonable to allow the partial 

cancellation of an Order without the 

Order losing priority because the 

participant that entered the Order 

continues to express its willingness to 

trade at the price entered when the 

Order first came onto the Book. 

Moreover, if the Order is displayed, 

other participants quoting at the same 

price are aware of the priority of their 

Orders relative to the partially cancelled 

Order. While a partial cancellation may 

provide these other participants with 

greater opportunities to provide a fill, 

the Exchange does not believe that it 

would be reasonable for these 

participants to jump ahead of an Order 

with time priority merely because the 

size of the Order has been reduced. 

Similarly, if the partially cancelled 

Order is non-displayed, other 

participants would have no awareness 

of its price, its original size, or its 

reduced size. Again, while other 

participants at that price may have an 

increased opportunity to provide a fill 

when the Order’s size is reduced, they 

would not have an expectation that the 

priority of their Orders would change 

vis-a`-vis that of an Order that arrived on 

the Book at an earlier time. 

Moreover, the Exchange notes that the 

proposal will simplify and harmonize 

the Exchange’s processing of partial 

cancellations across its Order Entry 

Protocols. 

Additionally, the proposed Rule 

change will address ambiguities in the 

existing Rule text. The existing Rule text 

does not state expressly the Exchange’s 

current practice of restricting the loss of 

priority following a partial cancellation 

to Pegged Orders when such Orders are 

entered through RASH or FIX. The 

existing language suggests that partial 

cancellations of these Orders cause a 

loss of priority in all cases, regardless of 

the Exchange’s Order Entry Protocol 

utilized to enter the Orders. In fact, the 

Exchange does process partial 

cancellations of these Orders without 

loss of priority when the Orders are 

entered through OUCH and FLITE. The 

proposed Rule change will address this 

issue by providing for consistent 

handling of partial cancellations across 

all Orders and all applicable and 

available Order Entry Protocols and by 

eliminating exceptions in the existing 

Rule text. 

Similarly, the existing Rule is 

ambiguous as to the intended scope of 

its exception to the general rule for 

‘‘Pegged Orders.’’ Although the Rule 

states that the exception applies to 

‘‘Pegged Orders (including a 

Discretionary Order that is Pegged),’’ the 

Exchange does not intend for Orders 

with Midpoint Pegging to be part of this 

exception, and it applies the Rule 

accordingly. In other words, the 

Exchange processes partial cancellations 

for Orders with Midpoint Pegging (i.e., 

Non-Display Orders assigned the 

Midpoint Peg Attribute) without loss of 

priority. The Exchange recognizes that 

the Rule text does not specifically 

address Orders with Midpoint Pegging. 

Again, the proposed Rule change will 

eliminate this issue going forward 

because the Exchange will adopt 

consistent handling of partial 

cancellations across all Orders and 

available and applicable Order Entry 

Protocols. 

The Exchange intends to implement 

the foregoing changes during the Second 

Quarter of 2022. The Exchange will 

issue an Equity Trader Alert at least 7 

days in advance of implementing the 

changes. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,9 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,10

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 Exchange believes that its 

proposed amendment to Rule 4756(a)(3) 

is consistent with the Act. Eliminating 

the exception to the general Rule 

providing for the Exchange to process 

partial cancellations without loss of 

priority will benefit participants by 

enabling them to reduce the share size 

of their Orders without the need to 

sacrifice the priority of their Orders. 

The Exchange believes that it is 

reasonable to allow the partial 

cancellation of an Order without the 

Order losing priority because the 

participant that entered the Order 

continues to express its willingness to 

trade at the price entered when the 

Order first came onto the Book. 

Moreover, if the Order is displayed, 

other participants quoting at the same 

price are aware of the priority of their 

Orders relative to the partially cancelled 

Order. While a partial cancellation may 

provide these other participants with 

greater opportunities to provide a fill, 

the Exchange does not believe that it 

would be reasonable for these 

participants to jump ahead of an Order 

with time priority merely because the 

size of the Order has been reduced. 

Similarly, if the partially cancelled 

order is non-displayed, other 

participants would have no awareness 

of its price, its original size, or its 

reduced size. Again, while other 

participants at that price may have an 

increased opportunity to provide a fill 

when the Order’s size is reduced, they 

would not have an expectation that the 

priority of their Orders would change 

vis-a`-vis that of an Order that arrived on 

the Book at an earlier time. 

Moreover, the proposal will simplify 

and harmonize the Exchange’s 

processing of partial cancellations 

across its Order Entry Protocols. This 

proposed amendment reflects planned 

upgrades that will allow the Exchange 

to process partial cancellation of Orders 

entered through all pertinent and 

available Order Entry Protocols without 

loss of priority. 

Additionally, the proposed Rule 

change is consistent with the Act 

because it will eliminate ambiguities in 

the existing Rule text that do not fully 

reflect the Exchange’s intended meaning 

or application of the Rule. As noted 

above, the existing Rule text does not 

state that the Exchange limits the loss of 

priority for partially cancelled Orders to 

Pegged Orders when such Orders are 

entered through RASH or FIX. The 

existing language suggests that partial 

cancellations of these Orders lose 

priority in all cases, regardless of the 

Exchange’s Order Entry Protocol 

utilized to enter the Orders. In fact, the 

Exchange does process partial 

cancellations of these Orders without 

loss of priority when the Orders are 

entered through OUCH or FLITE. The 

proposed Rule change will address this 

issue by providing for consistent 

handling of partial cancellations across 

all applicable and available Orders and 

Order Entry Protocols and by 

eliminating exceptions in the existing 

Rule text. 

Similarly, the existing Rule does not 

reflect the Exchange’s intent that Orders 

with Midpoint Pegging are not included 

in this exception, even though it applies 

the Rule in this manner. In other words, 

the Exchange processes partial 

cancellations for Midpoint Pegging 

Orders without loss of priority. The 

Exchange recognizes that the Rule text 

does not specifically address Orders 


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11 15 U.S.C. 78s(b)(3)(A). 

12 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 Exchange 

has satisfied this requirement. 13 17 CFR 200.30–3(a)(12). 

with Midpoint Pegging. Again, the 

proposed Rule change will eliminate 

this issue going forward because the 

Exchange will adopt consistent 

handling of partial cancellations across 

all Orders and applicable and available 

Order Entry Protocols. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that its 

proposed rule change will impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. As a general 

principle, the proposed changes are 

reflective of the significant competition 

among exchanges and non-exchange 

venues for order flow. In this regard, 

proposed changes that facilitate 

enhancements to the Exchange’s System 

and Order Entry Protocols as well as 

those that amend and clarify the 

Exchange’s Rules regarding its Order 

Types and Attributes, are procompetitive because they bolster the 

efficiency, integrity, and overall 

attractiveness of the Exchange in an 

absolute sense and relative to its peers. 

Moreover, the proposed changes will 

not unduly burden intra-market 

competition among various Exchange 

participants. The Exchange’s proposal to 

allow the partial cancellation of an 

Order without the Order losing priority 

will not impact intra-market 

competition because the participant that 

entered the Order continues to express 

its willingness to trade at the price 

entered when the Order first came onto 

the Book. Moreover, if the Order is 

displayed, other participants quoting at 

the same price are aware of the priority 

of their Orders relative to the partially 

cancelled Order. While a partial 

cancellation may provide these other 

participants with greater opportunities 

to provide a fill, the Exchange does not 

believe that it would be reasonable for 

these participants to jump ahead of an 

Order with time priority merely because 

the size of the Order has been reduced. 

Similarly, if the partially cancelled 

Order is non-displayed, other 

participants would have no awareness 

of its price, its original size, or its 

reduced size. Again, while other 

participants at that price may have an 

increased opportunity to provide a fill 

when the Order’s size is reduced, they 

would not have an expectation that the 

priority of their Orders would change 

vis-a`-vis that of an Order that arrived on 

the Book at an earlier time. 

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 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

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– 

BX–2022–006 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–BX–2022–006. 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–BX–2022–006 and should 

be submitted on or before May 18, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08914 Filed 4–26–22; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 11719] 

60-Day Notice of Proposed Information 

Collection: Affidavit of Identifying 

Witness 

ACTION: Notice of request for public 

comments. 

SUMMARY: The Department of State is 

seeking Office of Management and 

Budget (OMB) approval for the 

information collection described below. 

In accordance with the Paperwork 

Reduction Act of 1995, we are 

requesting comments on this collection 

from all interested individuals and 

organizations. The purpose of this 


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