26378 Federal Register / Vol. 87, No. 86 / Wednesday, May 4, 2022 / Notices 

1https://www.whitehouse.gov/wp-content/ 

uploads/2022/04/04-2022-ISAM-National-StrategyFinal.pdf. 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 94053 

(Jan. 25, 2022), 87 FR 4982 (‘‘Notice’’). 

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

5See Securities Exchange Act Release No. 94392, 

87 FR 14592 (Mar. 15, 2022). The Commission 

designated May 1, 2022 as the date by which it 

should approve or disapprove, or institute 

proceedings to determine whether to disapprove, 

the proposed rule change. 

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

7For a complete description of the proposed rule 

change, see Notice, supra note 3. 

input from all interested parties on the 

In-space Servicing, Assembly and 

Manufacturing (ISAM) National 

Strategy,1 and on specific U.S. 

Government actions or initiatives to 

advance the strategy’s stated goals. 

Input received will inform the ISAM 

Interagency Working Group’s 

development of an ISAM 

implementation plan. 

DATES: Responses are due by June 30, 

2022. 

ADDRESSES: Interested individuals and 

organizations should submit comments 

electronically to Ezinne Uzo-Okoro at 

isam@ostp.eop.gov. Further information 

may be received by calling 202–456– 

4444. 

Instructions: Response to this RFC is 

voluntary. Respondents need not reply 

to all questions listed. Each individual 

or institution is requested to submit 

only one response. OSTP and/or NSTC 

may post responses to this RFC, without 

change, on a Federal website. OSTP, 

therefore, requests that no business 

proprietary information, copyrighted 

information, or personally identifiable 

information be submitted in response to 

this RFC. Please note that the United 

States Government will not pay for 

response preparation, or for the use of 

any information contained in the 

response. 

SUPPLEMENTARY INFORMATION: The ISAM 

Interagency Working Group has 

commenced the development of an 

implementation plan to be released in 

2022. Pursuant to 42 U.S.C. 6622, OSTP 

is soliciting public input through this 

RFC to obtain recommendations from a 

wide range of stakeholders, including 

representatives from industry, 

academia, other relevant organizations 

and institutions, and the general public. 

Input provided in response to this RFC 

will inform OSTP and NSTC as they 

work with Federal departments and 

agencies and other stakeholders to 

develop an In-space Servicing, 

Assembly, and Manufacturing 

implementation plan. This 

implementation plan will identify key 

actions to advance the goals and 

objectives outlined in the ISAM national 

strategy published in April 2022. The 

national strategy can be found at: 

https://www.whitehouse.gov/wpcontent/uploads/2022/04/04-2022- 

ISAM-National-Strategy-Final.pdf. 

Implementing this strategy will help 

the United States realize the benefits of 

ISAM capabilities by taking steps to: 

improve coordination and collaboration 

both within the USG, as well as among 

the USG, academia, industry, and 

international partners; send a clear and 

consistent demand signal to private 

industry in order to stimulate 

investment, mitigate risk, and address 

investor confidence; and establish and 

adopt ISAM standards to help promote 

growth. The strategy is organized 

around six goals: (1) Advance ISAM 

research and development, (2) prioritize 

expanding scalable ISAM infrastructure, 

(3) accelerate the emerging ISAM 

commercial industry, (4) promote 

international collaboration and 

cooperation, (5) prioritize 

environmental sustainability and 6) 

inspire the future space workforce. 

OSTP seeks public input from the 

community of ISAM stakeholders on 

what priorities the government should 

focus on in the implementation plan. 

This includes actions for governmentsponsored initiatives/coordination; the 

roles of academia, nonprofit, and 

industry actors in addressing these 

actions; and potential avenues for 

coordination between actors across 

public and private sectors. 

Questions To Inform Development of 

the Implementation Plan 

OSTP seeks responses to the 

following questions to improve 

government coordination and to provide 

long-term guidance for Federal 

programs and activities in support of the 

United States In-space Servicing, 

Assembly, and Manufacturing 

implementation plan. 

(1) What specific technologies and 

capabilities require priority R&D focus 

to enable and advance the development 

of a suite of commercial ISAM 

capabilities over the next 10–15 years? 

(2) What infrastructure, ground, 

space-based, or digital, or other nonmonetary resources will be critical to 

enabling the advancement of ISAM 

capabilities and the commercial ISAM 

industry? 

(3) What factors (e.g., demand for 

services, lack of regulation, government 

funding, USG space priorities and space 

architecture decisions, significant debris 

event) may accelerate or decelerate 

progress in the development and 

advancement of the ISAM industry? 

(4) What are the most effective kinds 

of partnerships, between the U.S. 

Government, industry, and academia, 

that would advance ISAM industry 

maturity and ISAM capabilities? What 

partnership opportunities exist, both 

nationally and internationally, outside 

of the Federal Government? 

(5) What are the highest priority 

actions that the USG can take over the 

next five years to implement the goals 

outlined in the ISAM strategy? 

Dated: April 29, 2022. 

Stacy Murphy, 

Operations Manager. 

[FR Doc. 2022–09549 Filed 5–3–22; 8:45 am] 

BILLING CODE 3271–F1–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94814; File No. SR–NYSE– 

2022–04] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Instituting Proceedings To Determine 

Whether To Approve or Disapprove a 

Proposed Rule Change To Amend 

Rules 5P, 5.2(j)(8)(e), 8P, and 98 

April 28, 2022. 

On January 14, 2022, New York Stock 

Exchange LLC (‘‘Exchange’’ or ‘‘NYSE’’) 

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 permit the listing and trading 

of certain exchange-traded products 

(‘‘ETPs’’) that overlie one or more NMS 

Stocks listed on the Exchange. The 

proposed rule change was published for 

comment in the Federal Register on 

January 31, 2022.3 On March 9, 2022, 

pursuant to Section 19(b)(2) of the Act,4

the Commission designated a longer 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.5

The Commission has received no 

comment letters on the proposal. This 

order institutes proceedings under 

Section 19(b)(2)(B) of the Act 6 to 

determine whether to approve or 

disapprove the proposed rule change. 

I. Summary Description of the 

Proposal 7

The Exchange proposes to amend its 

rules regarding side-by-side trading, 

which is the trading of an equity 


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Federal Register / Vol. 87, No. 86 / Wednesday, May 4, 2022 / Notices 26379 

8NYSE Rules 5P and 8P generally prohibit the 

Exchange from listing shares of an ETP that ‘‘has 

any component NMS Stock that is listed on the 

Exchange or that is based on, or represents an 

interest in, an underlying index or reference asset 

that includes an NMS Stock listed on the Exchange. 

NMS Stock is defined in Rule 600 of Regulation 

NMS, 17 CFR 242.600(b)(48) as ‘‘any NMS security 

other than an option.’’ ‘‘NMS Security’’ means any 

security or class of securities for which transaction 

reports are collected, processed, and made available 

pursuant to an effective transaction reporting plan, 

or an effective national market system plan for 

reporting transactions in listed options.’’ 17 CFR 

242.600(b)(47). ‘‘NMS Security’’ refers to 

‘‘exchange-listed equity securities and standardized 

options, but does not include exchange-listed debt 

securities, securities futures, or open-end mutual 

funds, which are not currently reported pursuant to 

an effective transaction reporting plan.’’ See 

Question 1.1 in the ‘‘Responses to Frequently Asked 

Questions Concerning Large Trader Reporting,’’ 

available at: https://www.sec.gov/divisions/ 

marketreg/large-trader-faqs.htm. 

9Shares of Active Proxy Portfolio Shares and 

Managed Portfolio Shares, which are issued by 

funds whose portfolios are not fully transparent, 

already are exempted from the general prohibition. 

See NYSE Rule 8P. 

10See Securities Exchange Act Release No. 46213, 

67 FR 48232 (SR–Amex–2002–21); see also 

Securities Exchange Act Release No. 62479 (July 9, 

2010), 75 FR 41264 (July 15, 2010) (SR–Amex– 

2010–31) (approving side-by-side trading and 

integrated market making in the QQQ ETF and 

certain of its component securities where the QQQs 

met the composition and concentration measures to 

be classified as a broad-based ETF). 

11See Notice, supra note 3, 87 FR at 4983. 

12See id., 87 FR at 4984–85 

13Current NYSE Rule 98(c)(6) prohibits DMM 

units from operating as a specialist or market maker 

on the Exchange in ‘‘related products’’ unless 

specifically permitted in Exchange rules. 

14See Securities Exchange Act Release No. 46213, 

supra note 10, 67 FR at 48235. 

15See id., 87 FR at 4986. 

16See id., 87 FR at 4987. 

17See id. 

18See id. 

19See id. 

20 15 U.S.C. 78s(b)(2)(B). 

21 Id. 

security and its related derivative 

product at the same physical location. 

Specifically, the Exchange proposes to 

exclude from its listing prohibitions in 

NYSE Rules 5P and 8P 8 shares of an 

ETP that independently satisfies the 

quantitative generic listing criteria set 

forth in NYSE Rules 5.2(j)(3), 

Supplementary Material .01(a), NYSE 

Rule 5.2(j)(6)(B)(I); or proposed Rule 

5.2(j)(8)(e)(1)(B), as well as shares of an 

ETP that independently satisfies the 

generic listing criteria set forth in NYSE 

Rules 8.100, Supplementary Material 

.01(a)(A) or 8.600, Supplementary 

Material .01(a).9

The Commission previously approved 

integrated market making and side-byside trading for ‘‘broad-based’’ exchange 

traded funds, Trust-Issued Receipts, and 

related options.10 According to the 

Exchange, under Commission 

precedent, (1) integrated market making 

and side-by-side trading in both the ETP 

and related options is permissible—with 

no additional requirement for 

information barriers or physical or 

organizational separation—where the 

ETP is ‘‘broad-based,’’ i.e., not readily 

susceptible to manipulation; (2) an ETP 

is broad-based when its the individual 

components are sufficiently liquid and 

well-capitalized and the product is not 

over-concentrated; and (3) to determine 

whether an ETP is broad-based, the 

Commission has relied on an exchange’s 

listing standards.11 In support of its 

proposal, the Exchange analyzes aspects 

of its existing—and in the case of 

Exchange-Traded Fund Shares, its 

proposed—listing criteria for shares of 

the specified ETPs and concludes that 

they are sufficiently ‘‘broad-based’’ to 

address potential manipulation 

concerns arising out of trading those 

shares on the same physical trading 

floor as one or more underlying NYSElisted securities.12

The Exchange also proposes to amend 

a rule regarding integrated market 

making,13 which is the practice of the 

same person or firm making markets in 

an equity security and its related 

derivative product. NYSE assigns each 

of securities it lists to a Designated 

Market Maker (‘‘DMM’’), and trading is 

on the floor of the Exchange. Integrated 

market making could be implicated if 

NYSE starts listing ETPs with an 

underlying NYSE Component Security 

because each ETP would be assigned to 

a DMM and that DMM also may be 

assigned one or more NYSE Component 

Securities that underlie the ETP’s 

underlying index or portfolio. The 

Exchange proposes to narrow the 

definition of ‘‘related products’’ to 

exclude derivative instruments that 

overlie ETPs listed under NYSE Rules 

5.2(j)(3), Supplementary Material .01(a); 

5.2(j)(6)(B)(I); 5.2(j)(8)(e)(1)(B); 8.100, 

Supplementary Material .01(a)(A); 8.600 

Supplementary Material .01(a); 8.601; or 

8.900. 

While informational advantage is a 

concern with respect to integrated 

market making,14 the Exchange asserts 

that there are sufficient safeguards in 

place to prohibit the misuse of material 

nonpublic information by a member 

organization that operates a DMM unit. 

Specifically, the Exchange asserts that 

Rule 98 contains narrowly tailored 

restrictions to address that DMMs while 

on the floor may have access to certain 

floor-based non-public information and 

requires DMM units to maintain 

procedures and controls to prevent the 

misuse of material, non-public 

information that are effective and 

appropriate for that member 

organization.15

According to the Exchange, trading on 

the Exchange is subject to a 

comprehensive regulatory program that 

includes a suite of surveillances and 

routine examinations that review 

trading by DMMs and other market 

participants on the Exchange’s trading 

floor, including surveillances designed 

to monitor for trading ahead and 

manipulative activity.16 To assist 

Exchange surveillance of DMM trading 

activity, a member organization 

operating a DMM unit must daily 

provide the Exchange with net position 

information in DMM securities by the 

DMM unit and any independent trading 

unit of which it is part for such times 

and in the manner prescribed by the 

Exchange pursuant to Rule 98(c)(5).17 In 

addition, routine examinations are 

conducted consistent with the current 

exam-based regulatory program 

associated with Rule 98 that reviews 

member organizations operating DMM 

units for compliance with the abovedescribed policies and procedures to 

protect against the misuse of material 

nonpublic information.18 Lastly, the 

Exchange asserts that DMM market 

making activity is not materially 

different from market making on other 

exchanges and that these existing 

programs are reasonably designed to 

address any concerns that may be raised 

by the trading of the specified listed 

ETPs that have underlying NYSE 

Component Securities.19

II. Proceedings To Determine Whether 

To Approve or Disapprove SR–NYSE– 

2019–54 and Grounds for Disapproval 

Under Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act 20 to determine 

whether the proposed rule change 

should be approved or disapproved. 

Institution of such proceedings is 

appropriate at this time in view of the 

legal and policy issues raised by the 

proposed rule change. Institution of 

proceedings does not indicate that the 

Commission has reached any 

conclusions with respect to any of the 

issues involved. Rather, as described 

below, the Commission seeks and 

encourages interested persons to 

provide comments on the proposed rule 

change. 

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

Act,21 the Commission is providing 

notice of the grounds for disapproval 

under consideration. The Commission is 

instituting proceedings to allow for 

additional analysis of the proposed rule 

change’s consistency with Section 


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26380 Federal Register / Vol. 87, No. 86 / Wednesday, May 4, 2022 / Notices 

22 15 U.S.C. 78f(b)(5). 

23See supra note 10. 

24Section 19(b)(2) of the Act, as amended by the 

Securities Act Amendments of 1975, Pub. L. 94–29 

(June 4, 1975), grants the Commission flexibility to 

determine what type of proceeding—either oral or 

notice and opportunity for written comments—is 

appropriate for consideration of a particular 

proposal by a self-regulatory organization. See 

Securities Act Amendments of 1975, Senate Comm. 

on Banking, Housing & Urban Affairs, S. Rep. No. 

75, 94th Cong., 1st Sess. 30 (1975). 25 17 CFR 200.30–3(a)(57). 

6(b)(5) of the Act, which requires, 

among other things, that the rules of a 

national securities exchange be 

‘‘designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade,’’ and ‘‘to protect investors and the 

public interest.’’ 22

The Commission asks that 

commenters address the sufficiency of 

the Exchange’s statements in support of 

the proposal, which are set forth in the 

Notice, in addition to any other 

comments they may wish to submit 

about the proposed rule change. In 

particular, the Commission seeks 

comment on the following questions 

and asks commenters to submit data 

where appropriate to support their 

views. 

1. What are commenters’ views 

generally on whether the Exchange’s 

proposal to implement side-by-side 

trading and integrated market making 

for certain ETPs to be listed and traded 

on the Exchange is consistent with 

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

requires that the Exchange’s rules be 

designed to, among other things, 

prevent fraudulent and manipulative 

acts and practices? 

2. Do the quantitative generic listing 

criteria of current Rules 5.2(j)(3), 

Supplementary Material .01(a) 

(applicable to Investment Company 

Units), 5.2(j)(6)(B)(I) (applicable to 

Equity Index-Linked Securities), and 

proposed Rule 5.2(j)(8), as well as the 

generic listing criteria of current NYSE 

Rules 8.100 (applicable to Portfolio 

Depositary Receipts) and 8.600 

(applicable to Managed Fund Shares) 

adequately address the concerns 

reflected in the ‘‘broad-based’’ test 

previously articulated by the 

Commission with respect to side-by-side 

trading and integrated market 

making? 23 If not, why? Should the 

Commission consider other factors in 

reviewing side-by-side trading and 

integrated market making? 

3. What are commenters’ views about 

whether the proposed changes to Rule 

98 to exclude the specified ETPs listed 

on the Exchange from the definition of 

‘‘related products’’ would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system? Do 

commenters agree that such changes 

would facilitate the assignment of listed 

ETPs, including ETPs with underlying 

NYSE Component Securities that meet 

the specified listing rules in Rules 5P 

and 8P, to DMMs and permit DMMs to 

trade such listed ETPs consistent with 

existing Rules governing DMM trading? 

If so, why? If not, why not? 

4. What informational advantage (if 

any) over other market participants with 

respect to trading an ETP or its 

underlying securities might a DMM (or 

other member) obtain as a result of the 

proposed implementation of side-byside trading and integrated market 

making for ETPs with underlying NYSE 

Component Securities? What concerns, 

if any, do commenters have about the 

potential for a DMM (or other member) 

to misuse material, non-public 

information? 

III. Procedure: Request for Written 

Comments 

The Commission requests that 

interested persons provide written 

submissions of their views, data, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

proposal. In particular, the Commission 

invites the written views of interested 

persons concerning whether the 

proposal is consistent with Section 

6(b)(5) or any other provision of the Act, 

or the rules and regulations thereunder. 

Although there do not appear to be any 

issues relevant to approval or 

disapproval that would be facilitated by 

an oral presentation of views, data, and 

arguments, the Commission will 

consider, pursuant to Rule 19b–4, any 

request for an opportunity to make an 

oral presentation.24

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposal should be approved or 

disapproved by May 25, 2022. Any 

person who wishes to file a rebuttal to 

any other person’s submission must file 

that rebuttal by June 8, 2022. The 

Commission asks that commenters 

address the sufficiency of the 

Exchange’s statements in support of the 

proposal, in addition to any other 

comments they may wish to submit 

about the proposed rule change. 

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– 

NYSE–2022–04 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–NYSE–2022–04. 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–NYSE–2022–04 and should 

be submitted by May 25, 2022. Rebuttal 

comments should be submitted by June 

8, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09519 Filed 5–3–22; 8:45 am] 

BILLING CODE P 


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