27670 Federal Register / Vol. 87, No. 89 / Monday, May 9, 2022 / Notices 

5See Securities Exchange Act Release No. 93488 

(Nov. 1, 2021), 86 FR 61352 (Nov. 5, 2021). 

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

7See Securities Exchange Act Release No. 93809 

(Dec. 17, 2021), 86 FR 73060 (Dec. 23, 2021). 

8See Securities Exchange Act Release No. 94457 

(Mar. 17, 2022), 87 FR 16539 (Mar. 23, 2022). 

9See Anonymous Letter (Sept. 27, 2021); Letter 

from Richard Grant, General Counsel, GTS 

Securities LLC, to J. Matthew DeLesDernier, 

Assistant Secretary, Commission (Mar. 16, 2022). 

The comments received are available at https://

www.sec.gov/comments/sr-nyse-2021-44/ 

srnyse202144.htm. 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange notes that other options 

exchanges offer this pricing increment for stockoption orders. See Cboe Options Rule 5.33(f)(i)(B), 

which provides that, ‘‘users may express bids and 

offers for a stock-option order (including a QCC 

with Stock Order) in any decimal price the 

Exchange determines. The minimum increment for 

the option leg(s) of a stock-option order is $0.01 or 

greater, which the Exchange may determine on a 

class-by-class basis, regardless of the minimum 

increments otherwise applicable to the option 

leg(s), and the stock leg of a stock-option order may 

be executed in any decimal price permitted in the 

equity market.’’ See also Nasdaq ISE Options 3, 

Section 14(c)(1), which similarly provides, ‘‘bids 

and offers for Complex Options Strategies may be 

expressed in one cent ($0.01) increments, and the 

options leg of Complex Options Strategies may be 

executed in one cent ($0.01) increments, regardless 

of the minimum increments otherwise applicable to 

the individual options legs of the order. Bids and 

offers for Stock-Option Strategies or Stock-Complex 

Strategies may be expressed in any decimal price 

determined by the Exchange, and the stock leg of 

a Stock-Option Strategy or Stock-Complex Strategy 

may be executed in any decimal price permitted in 

the equity market. The options leg of a StockOption Strategy or Stock-Complex Strategy may be 

executed in one cent ($0.01) increments, regardless 

of the minimum increments otherwise applicable to 

the individual options legs of the order.’’ See also 

Cboe EDGX Rule 21.20(f)(1)(B). 

4The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

5See Securities Exchange Act Release No. 79072 

(October 7, 2016), 81 FR 71131 (October 14, 

2016)(SR–MIAX–2016–26). 

6The term ‘‘Member’’ means an individual or 

organization approved to exercise the trading rights 

associated with a Trading Permit. Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100. 

7See MIAX Regulatory Circular 2016–41, Trading 

of Complex Orders on MIAX (October 14, 2016) 

available at https://www.miaxoptions.com/sites/ 

default/files/circular-files/MIAX_RC_2016_41.pdf. 

8See Exchange Rule 518(a)(5). 

determine whether to approve or 

disapprove the proposed rule change to 

December 21, 2021.5 On December 17, 

2021, the Commission instituted 

proceedings under Section 19(b)(2)(B) of 

the Act 6 to determine whether to 

approve or disapprove the proposed 

rule change.7 On March 17, 2022, the 

Commission extended the time for 

Commission action on proceedings to 

approve or disapprove the proposed 

rule change to May 20, 2022.8 The 

Commission received two comment 

letters on the proposal.9

On April 26, 2022, the Exchange 

withdrew the proposed rule change 

(File No. SR–NYSE–2021–44). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09852 Filed 5–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94836; File No. SR–MIAX– 

2022–17] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by Miami 

International Securities Exchange, LLC 

to Amend Exchange Rule 518, 

Complex Orders and Exchange Rule 

515, Execution of Orders and Quotes, 

To Permit Pricing of Stock-Option 

Complex Strategies in any Decimal 

Price the Exchange Determines 

May 3, 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 19, 

2022, Miami International Securities 

Exchange, LLC (‘‘MIAX Options’’ 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 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 is filing a proposal to 

amend its Rulebook to permit pricing of 

stock-option complex strategies in any 

decimal price the Exchange determines. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal 

office, 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 

Exchange Rule 518, Complex Orders, 

and Exchange Rule 515, Execution of 

Orders and Quotes, to permit pricing of 

stock-option complex strategies in any 

decimal price the Exchange 

determines.3

Background 

In October 2016, the Exchange 

adopted rules governing the trading in, 

and detailing the functionality of the 

MIAX Options System 4 in the handling 

of complex orders on the Exchange.5

The Exchange defines a ‘‘complex 

order’’ as any order involving the 

concurrent purchase and/or sale of two 

or more different options in the same 

underlying security (the ‘‘legs’’ or 

‘‘components’’ of the complex order), 

for the same account, in a ratio that is 

equal to or greater than one-to-three 

(.333) and less than or equal to three-toone (3.00) and for the purposes of 

executing a particular investment 

strategy. Mini-options may only be part 

of a complex order that includes other 

mini-options. Only those complex 

orders in the classes designated by the 

Exchange and communicated to 

Members 6 via Regulatory Circular with 

no more than the applicable number of 

legs, as determined by the Exchange on 

a class-by-class basis and communicated 

to Members via Regulatory Circular,7 are 

eligible for processing.8

A complex order can also be a ‘‘stockoption order’’ as described further, and 

subject to the limitations set forth, in 

Interpretations and Policies .01 of 

Exchange Rule 518. A stock-option 

order is an order to buy or sell a stated 

number of units of an underlying 

security (stock or Exchange Traded 

Fund Share (‘‘ETF’’)) or a security 

convertible into the underlying stock 

(‘‘convertible security’’) coupled with 

the purchase or sale of options 

contract(s) on the opposite side of the 

market representing either (i) the same 

number of units of the underlying 

security or convertible security, or (ii) 

the number of units of the underlying 

stock necessary to create a delta neutral 

position, but in no case in a ratio greater 


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9See MIAX Regulatory Circular 2018–34, 

Implementation of Stock-Option Complex Order 

Trading on the Exchange (August 2, 2018) available 

at https://www.miaxoptions.com/sites/default/files/ 

circular-files/MIAX_Options_RC_2018_34.pdf. 

10See supra note 8. 

11A ‘‘qualified contingent trade’’ is a transaction 

consisting of two or more component orders, 

executed as agent or principal, where: (a) At least 

one component is an NMS Stock, as defined in Rule 

600 of Regulation NMS under the Exchange Act; (b) 

all components are effected with a product or price 

contingency that either has been agreed to by all the 

respective counterparties or arranged for by a 

broker-dealer as principal or agent; (c) the execution 

of one component is contingent upon the execution 

of all other components at or near the same time; 

(d) the specific relationship between the component 

orders (e.g., the spread between the prices of the 

component orders) is determined by the time the 

contingent order is placed; (e) the component 

orders bear a derivative relationship to one another, 

represent different classes of shares of the same 

issuer, or involve the securities of participants in 

mergers or with intentions to merge that have been 

announced or cancelled; and (f) the transaction is 

fully hedged (without regard to any prior existing 

position) as a result of other components of the 

contingent trade. See Interpretations and Polices .01 

of Exchange Rule 516. 

12See Exchange Rule 518(b)(6). 

13The term ‘‘Priority Customer’’ means a person 

or entity that (i) is not a broker or dealer in 

securities, and (ii) does not place more than 390 

orders in listed options per day on average during 

a calendar month for its own beneficial account(s). 

See Exchange Rule 100. 

14The term ‘‘Simple Order Book’’ is the 

Exchange’s regular electronic book of orders and 

quotes. See Exchange Rule 518(a)(15). 

15The term ‘‘MBBO’’ means the best bid or offer 

on the Simple Order Book on the Exchange. See 

Exchange Rule 518(a)(13). 

16See Exchange Rule 518(c)(1). 17The Exchange notes that its rule text is 

substantially similar to the rules of other exchanges 

that trade stock-option orders. See supra note 3. 

than eight-to-one (8.00), where the ratio 

represents the total number of units of 

the underlying security or convertible 

security in the option leg to the total 

number of units of the underlying 

security or convertible security in the 

stock leg. Only those stock-option 

orders in the classes designated by the 

Exchange and communicated to 

Members via Regulatory Circular with 

no more than the applicable number of 

legs as determined by the Exchange on 

a class-by-class basis and communicated 

to Members via Regulatory Circular,9 are 

eligible for processing.10

Additionally, the Exchange offers a 

Complex Qualified Contingent Cross 

Order or ‘‘cQCC’’ Order which is 

comprised of an originating complex 

order to buy or sell where each 

component is at least 1,000 contracts 

that is identified as being part of a 

qualified contingent trade, as defined in 

Rule 516, Interpretations and Policies 

.01,11 coupled with a contra-side 

complex order or orders totaling an 

equal number of contracts. The trading 

of cQCC Orders is governed by Rule 

515(h)(4).12

Exchange Rule 515(h)(4) currently 

provides that, cQCC Orders, as defined 

in Rule 518(b)(6), are automatically 

executed upon entry provided that, with 

respect to each option leg of the cQCC 

Order, the execution (i) is not at the 

same price as a Priority Customer Order 

on the Exchange’s Book; and (ii) is at or 

between the NBBO. The System will 

reject a cQCC Order if, at the time of 

receipt of the cQCC Order: (i) the 

strategy is subject to a cPRIME Auction 

pursuant to Rule 515A, Interpretation 

and Policy .12 or to a Complex Auction 

pursuant to Rule 518(d); or (ii) any 

component of the strategy is subject is 

subject to a SMAT Event as described in 

Rule 518(a)(16). Further paragraph (A) 

of Exchange Rule 515(h)(4) provides 

that cQCC Orders will be automatically 

canceled if they cannot be executed. 

Paragraph (B) of Exchange Rule 

515(h)(4) provides that, cQCC Orders 

may only be entered in the minimum 

trading increments applicable to 

complex orders under Rule 518(c)(1)(i). 

Paragraph (C) of Exchange Rule 

515(h)(4) provides that, the Exchange 

will determine on a class-by-class basis, 

the option classes in which cQCC 

Orders are available for trading on the 

Exchange, and will announce such 

classes to Members via Regulatory 

Circular. 

Trading of complex orders on the 

Exchange is governed by Exchange Rule 

518, Complex Orders. Minimum 

increments and trade prices for complex 

orders are described in current 

subparagraph (i) of Rule 518(c)(1) which 

states, bids and offers on complex 

orders and quotes may be expressed in 

$0.01 increments, and the component(s) 

of a complex order may be executed in 

$0.01 increments, regardless of the 

minimum increments otherwise 

applicable to individual components of 

the complex order. Current 

subparagraph (ii) of Exchange Rule 

518(c)(1) states, if any component of a 

complex strategy would be executed at 

a price that is equal to a Priority 

Customer 13 bid or offer on the Simple 

Order Book,14 at least one other 

component of the complex strategy must 

trade at a price that is better than the 

corresponding MBBO.15 Current 

subparagraph (iii) of Exchange Rule 

518(c)(1) states, a complex order will 

not be executed at a net price that 

would cause any component of the 

complex strategy to be executed: (A) At 

a price of zero; or (B) ahead of a Priority 

Customer order on the Simple Order 

Book without improving the MBBO of at 

least one component of the complex 

strategy. Current subparagraph (iv) of 

Exchange Rule 518(c)(1) states, a 

complex order or eQuote (as defined in 

Interpretations and Policies .02 of Rule 

518) will not be executed at a price that 

is outside of its MPC Price (as defined 

in Interpretations and Policies .05(f) of 

Rule 518) or its limit price.16

Proposal 

The Exchange now proposes to (i) 

amend its rule pertaining to the pricing 

of complex orders to permit the pricing 

of stock-option complex strategies in 

any decimal price the Exchange 

determines; and (ii) make additional 

changes to the Exchange’s rulebook 

necessary to support the 

implementation of the proposed pricing 

structure. 

Rule 518 Complex Orders 

Specifically, the Exchange proposes to 

amend subsection (c)(1) Minimum 

Increments and Trade Prices of Rule 

518, to adopt new paragraph (ii), and to 

renumber current paragraph (c)(1)(ii) as 

paragraph (c)(1)(iii). New paragraph 

(c)(1)(ii) will provide that bids and 

offers on complex orders, quotes, and 

RFR Responses for stock-option 

complex strategies (including a cQCC 

Order entered with a stock component) 

may be expressed in any decimal price 

the Exchange determines. The option 

component(s) of such a complex order 

may be executed in $0.01 increments, 

regardless of the minimum increments 

otherwise applicable to individual 

components of the complex order, and 

the stock component of such a complex 

order may be executed in any decimal 

price permitted in the equity market. 

Minimum increments less than $0.01 

are appropriate for stock-option orders 

as the stock component can trade at 

finer decimal increments permitted by 

the equity market.17 Furthermore, the 

Exchange notes that even with the 

flexibility provided in the proposed 

rule, the individual options and stock 

legs must trade at increments allowed 

by the Commission in the options and 

equities markets. 

To support the pricing of stock-option 

orders in any decimal price the 

Exchange determines, the Exchange is 

proposing to make a number of 

conforming changes throughout its 

Rulebook to clearly differentiate pricing 

and support of complex strategies with 

only option components, (which 

remains unchanged under this proposal 

in $0.01 increments), and pricing and 

support of stock-option complex 

strategies which may be in sub-penny 

increments, as determined by the 

Exchange. 

Therefore, the Exchange proposes to 

make a minor conforming change to the 


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18The Exchange proposes to make an identical 

conforming change to paragraph (d)(6) of Rule 518. 

19The icMBBO is a calculation that uses the best 

price from the Simple Order Book for each 

component of a complex strategy including 

displayed and non-displayed trading interest. For 

stock-option orders, the icMBBO for a complex 

strategy will be calculated using the best price 

(whether displayed or non-displayed) on the 

Simple Order Book in the individual option 

component(s), and the NBBO in the stock 

component. See Exchange Rule 518(a)(11). 

20The ‘‘Strategy Book’’ is the Exchange’s 

electronic book of complex orders and complex 

quotes. See Exchange Rule 518(a)(17). 21See supra note 15. 22See Exchange Rule 518(c)(1)(iv) as proposed 

herein. 

rule text of current paragraph (c)(1)(ii) of 

Rule 518, which will be renumbered as 

paragraph (c)(1)(iii). The current rule 

text states that if any component of a 

complex strategy would be executed at 

a price that is equal to a Priority 

Customer bid or offer on the Simple 

Order Book, at least one other 

component of the complex strategy must 

trade at a price that is better than the 

corresponding MBBO. The Exchange 

now proposes to amend the rule to add 

additional detail and specificity by 

stating that, if any component of a 

complex strategy would be executed at 

a price that is equal to a Priority 

Customer bid or offer on the Simple 

Order Book, at least one other option 

component of the complex strategy must 

trade at a price that is better than the 

corresponding MBBO. The Exchange 

believes that clarifying that the 

component of the complex strategy must 

be an option component adds additional 

detail to the rule and makes it clear in 

the Exchange’s rules that a Priority 

Customer bid or offer must be improved 

by at least $0.01 by the option 

component of either a complex strategy 

with only option components or the 

option component of a stock-option 

complex strategy. 

Additionally, the Exchange proposes 

to amend paragraph (i) of subsection 

(c)(1), Minimum Increments and Trade 

Prices, of Exchange Rule 518, to add 

additional detail and clarity to the rule 

text. Currently, the rule provides that, 

bids and offers on complex orders and 

quotes may be expressed in $0.01 

increments, and the component(s) of a 

complex order may be executed in $0.01 

increments, regardless of the minimum 

increments otherwise applicable to 

individual components of the complex 

order. The Exchange now proposes to 

amend the rule text to provide that, bids 

and offers on complex orders, quotes, 

and RFR Responses for complex 

strategies having only option 

components may be expressed in $0.01 

increments, and the component(s) of 

such a complex order may be executed 

in $0.01 increments, regardless of the 

minimum increments otherwise 

applicable to individual components of 

the complex order. 

Paragraph (c)(1)(i) pertains to complex 

strategies that have only option 

components (as opposed to paragraph 

(c)(1)(ii) which pertains to stock-option 

complex strategies) and therefore 

provides that bids, offers, and RFR 

Responses for complex strategies having 

only option components may be 

expressed in $0.01 increments. The 

Exchange believes this change is 

necessary to differentiate between 

which strategies are required to be 

priced in $0.01 increments (complex 

strategies having only option 

components) and which strategies may 

be priced in an increment other than 

$0.01 (stock-option complex strategies). 

The Exchange believes this amendment 

provides additional detail and clarity 

regarding the pricing of complex 

strategies having only option 

components, which is not changing 

under this proposal. 

The Exchange also proposes to amend 

the rule text of current paragraph 

(c)(1)(iii) of Rule 518 to make two minor 

conforming changes and to renumber 

the paragraph as new paragraph 

(c)(1)(iv). Currently, the rule states that, 

a complex order will not be executed at 

a net price that would cause any 

component of the complex strategy to be 

executed: (A) At a price of zero; or (B) 

ahead of a Priority Customer order on 

the Simple Order Book without 

improving the MBBO of at least one 

component of the complex strategy. The 

Exchange now proposes to add 

additional detail and specificity to the 

rule to state that, a complex order will 

not be executed at a net price that 

would cause any option component of 

the complex strategy to be executed: (A) 

at a price of zero; or (B) ahead of a 

Priority Customer order on the Simple 

Order Book without improving the 

MBBO of at least one option component 

of the complex strategy.18 The Exchange 

believes that clarifying that the 

component of the complex strategy must 

be an option component adds additional 

detail and clarity to the rule. The 

Exchange also proposes to make a nonsubstantive change to existing paragraph 

(c)(1)(iv) to renumber the paragraph as 

(c)(1)(v). 

The Exchange proposes to amend 

subparagraph (i) of section (c)(4), 

Managed Interest Process for Complex 

Orders, of Rule 518 to add additional 

detail and clarity to the rule text. The 

managed interest process for complex 

orders ensures that a complex order will 

never be executed at a price that is 

through the individual component 

prices on the Simple Order Book. 

Currently, the rule provides that, 

when the opposite side icMBBO 19

includes a Priority Customer Order, the 

System will book and display such 

booked complex order on the Strategy 

Book 20 at a price (the ‘‘book and display 

price’’) that is $0.01 away from the 

current opposite side icMBBO. The 

Exchange proposes to amend the rule 

text to provide that, when the opposite 

side icMBBO includes a Priority 

Customer Order, the System will book 

and display such booked complex order 

on the Strategy Book at a price (the 

‘‘book and display price’’) such that at 

least one option component is priced 

$0.01 away from the current opposite 

side MBBO. The MBBO is comprised of 

the best bid and the best offer on the 

Simple Order Book on the Exchange.21

This change supports the proposed 

change to 518(c)(1)(iii) which provides 

that if any component of a complex 

strategy would be executed at a price 

that is equal to a Priority Customer bid 

or offer on the Simple Order Book, at 

least one option component of the 

complex strategy must trade at a price 

that is better than the corresponding 

MBBO. Together, these changes ensure 

that no complex strategy (either a 

complex strategy with only option 

components or a stock-option complex 

strategy) will execute ahead of a Priority 

Customer order on the Simple Order 

Book without improving the MBBO of at 

least one option component of the 

complex strategy by at least $0.01.22 The 

Exchange believes this change provides 

additional detail and clarity regarding 

the managed interest process for 

complex strategies with only option 

components and for stock-option 

complex strategies, and harmonizes the 

rule text to the System behavior. 

The Exchange proposes to amend 

paragraph (d)(4), RFR Response, of Rule 

518 to make a conforming change to the 

rule necessary to support pricing of 

stock-option complex strategies in any 

decimal price determined by the 

Exchange. Currently, Rule 518(d)(4) 

provides that, RFR responses may be 

submitted in $0.01 increments. The 

Exchange proposes to amend this 

provision to provide that RFR 

Responses may be submitted in the 

increments defined in proposed 

subparagraphs (c)(1)(i) and (c)(1)(ii) of 

this Rule. This proposed change is 

consistent with the proposed change to 

Rule 518(c)(1), Minimum Increments 

and Trade Prices, as described above, 

and aligns the pricing of complex 

strategies with only option components 

in $0.01, which is not changing under 

this proposal, and the pricing of 


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23The Exchange proposes to make an identical 

conforming change to Rule 518(e) for cLEP 

Responses. 

24See Exchange Rule 518(d)(6). 

25See Exchange Rule 518(d)(6)(i). 

26The dcMBBO is calculated using the best 

displayed price for each component of a complex 

strategy from the Simple Order Book. For stockoption orders, the dcMBBO for a complex strategy 

will be calculated using the Exchange’s best 

displayed bid or offer in the individual option 

component(s) and the NBBO in the stock 

component. See Exchange Rule 518(a)(8). 

complex strategies with an option 

component in any decimal price the 

Exchange determines as proposed 

herein. RFR responses submitted for a 

complex strategy having only options 

components may be expressed in $0.01 

increments as proposed in subparagraph 

(c)(1)(i), whereas RFR responses 

submitted for a stock-option complex 

strategy may be expressed in any 

decimal price the Exchange determines 

as proposed in subparagraph (c)(1)(ii). 

This change aligns RFR responses for 

complex strategies with only options 

components to the current price interval 

for complex orders of $0.01, which is 

not changing under this proposal, and 

aligns the pricing interval for stockoption complex strategies with the 

proposed change discussed herein to be 

in any decimal price as determined by 

the Exchange.23

The Exchange proposes to amend 

paragraph (d)(6)(i) of Rule 518 to add 

additional detail and clarity to the 

operation of the rule necessary to 

support pricing of stock-option complex 

strategies in sub-penny increments and 

clarify that the pricing and processing of 

complex strategies with only option 

components will remain unchanged 

under this proposal. Currently, the rule 

states that, at the conclusion of the 

Response Time Interval, Complex 

Auction-eligible orders will be priced 

and executed as follows, and allocated 

pursuant to subparagraph (7) of Rule 

518: 24 (i) Using $0.01 inside the current 

icMBBO as the boundary (the 

‘‘boundary’’), the System will calculate 

the price where the maximum quantity 

of contracts can trade and also 

determine whether there is an 

imbalance.25

The Exchange now proposes to amend 

the rule text to state that, at the 

conclusion of the Response Time 

Interval, Complex Auction-eligible 

orders will be priced and executed as 

follows, and allocated pursuant to 

subparagraph (7) of Rule 518: (i) Using 

$0.01 inside the current icMBBO for 

complex strategies with only option 

components or using a decimal price 

increment (as determined by the 

Exchange) inside the current icMBBO 

for stock-option complex strategies as 

the boundary (the ‘‘boundary’’) the 

System will calculate the price where 

the maximum quantity of contracts can 

trade and also determine whether there 

is an imbalance. This proposed change 

is consistent with the proposed change 

to Rule 518(c)(1), Minimum Increments 

and Trade Prices, as described above 

and allows the Exchange to accurately 

calculate prices for stock-option 

complex strategies. Using the same 

pricing increments that each complex 

strategy is priced in ($0.01 for complex 

strategies with only option components 

and the decimal price increment as 

determined by the Exchange for stockoption complex strategies) ensures that 

there are no calculation or rounding 

errors which ensures the accuracy and 

integrity of the Exchange’s price 

calculations and the System’s 

determination of the price where the 

maximum quantity of contracts can 

trade and also the System’s 

determination of an imbalance. The 

Exchange believes this change adds 

additional detail and clarity to the rule, 

by clarifying current behavior as it 

relates to complex strategies with only 

option components and facilitates the 

proposed change to permit pricing of 

complex strategies with an option 

component in any decimal price the 

Exchange determines. 

The Exchange proposes to amend 

paragraph (d)(6)(i)(A)2.a. of Rule 518 to 

provide for calculations in $0.01 

increments to support complex 

strategies with only option components 

and to provide for calculations in any 

decimal price increment as determined 

by the Exchange to support stock-option 

complex strategies. Currently, the rule 

provides that, if the midpoint price is 

not in a $0.01 increment, the System 

will round toward the midpoint of the 

dcMBBO 26 to the nearest $0.01. The 

Exchange now proposes to amend the 

rule text to state that, for complex 

strategies with only option components 

if the midpoint price is not in a $0.01 

increment, the System will round 

toward the midpoint of the dcMBBO to 

the nearest $0.01; for stock-option 

complex strategies, if the midpoint price 

is not in a decimal price increment as 

determined by the Exchange, the System 

will round toward the midpoint of the 

dcMBBO to the nearest decimal price 

increment as determined by the 

Exchange. 

Similarly, the Exchange also proposes 

to amend paragraph (d)(6)(i)(A)2.b. of 

Rule 518 to provide for calculations in 

$0.01 increments to support complex 

strategies with only option components 

and to provide for calculations in any 

decimal increment as determined by the 

Exchange to support stock-option 

complex strategies. Currently, the rule 

provides that if the midpoint of the 

highest and lowest prices is also the 

midpoint of the dcMBBO and is not in 

a $0.01 increment the System will 

round the price up to the next $0.01 

increment. The Exchange now proposes 

to amend the rule text to state that, if the 

midpoint of the highest and lowest 

prices is also the midpoint of the 

dcMBBO and is not in a $0.01 

increment for complex strategies with 

only option components or in a decimal 

price increment as determined by the 

Exchange for stock-option complex 

strategies, the System will round the 

price up to the next $0.01 increment for 

complex strategies with only option 

components or to a decimal price 

increment as determined by the 

Exchange for stock-option complex 

strategies. 

To properly perform the internal 

calculations described in Exchange Rule 

518(d)(6)(i)(A)2.a. and b. correctly it is 

imperative that the decimal increment 

being used in the calculation properly 

aligns to the decimal quoting increment 

being used on the Exchange for that 

strategy, be it for complex strategies 

with only options components or stockoption complex strategies. Using the 

appropriate decimal increment that the 

strategy is priced in ($0.01 for complex 

strategies with only options components 

or any decimal price as determined by 

the Exchange for stock-option complex 

strategies) ensures that the Exchange 

accurately calculates the Auction Start 

Price to the proper decimal precision for 

either complex strategies with only 

options components (which may only 

be in $0.01 increments) or stock-option 

complex strategies (which may be in 

any price increment as determined by 

the Exchange). The Exchange believes 

these changes provide additional detail 

and clarification regarding the 

differentiation in calculations for 

complex strategies with only options 

components that are priced in $0.01 

increments, which remains unchanged 

under this proposal, and calculations for 

stock-option complex strategies, which 

may be priced in increments other than 

$0.01. This change is necessary to 

support the proposed change discussed 

herein to price stock-option strategies in 

any decimal price increment as 

determined by the Exchange. 

Rule 515 Execution of Orders and 

Quotes 

Customer to Customer Cross Orders 

The Exchange proposes to amend 

paragraph (h), Crossing Orders, of Rule 


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27A Complex Customer Cross or ‘‘cC2C’’ Order is 

comprised of one Priority Customer complex order 

to buy and one Priority Customer complex order to 

sell at the same price and for the same quantity. 

Trading of cC2C Orders is governed by Rule 

515(h)(3). See Exchange Rule 518(b)(5). 

28Bids and offers on complex orders and quotes 

may be expressed in $0.01 increments, and the 

component(s) of a complex order may be executed 

in $0.01 increments, regardless of the minimum 

increments otherwise applicable to individual 

components of the complex order. See Exchange 

Rule 518(c)(1)(i). 

29A Complex Qualified Contingent Cross or 

‘‘cQCC’’ Order is comprised of an originating 

complex order to buy or sell where each component 

is at least 1,000 contracts that is identified as being 

part of a qualified contingent trade, as defined in 

Rule 516, Interpretations and Policies .01, coupled 

with a contra-side complex order or orders totaling 

an equal number of contracts. Trading of cQCC 

Orders is governed by Rule 515(h)(4). See Exchange 

Rule 518(b)(6). 

30See proposed Rule 515(h)(4)(D) and see also 

MIAX Options Regulatory Circular 2019–19, Update 

regarding Regulatory Requirements when entering a 

Qualified Contingent Cross Order (‘‘QCC’’) or a 

Complex Qualified Contingent Cross Order 

(‘‘cQCC’’) (March 19, 2019) available at: https://

www.miaxoptions.com/sites/default/files/circularfiles/MIAX_Options_RC_2019_19.pdf. 

31 15 U.S.C. 78f(b). 

32 15 U.S.C. 78f(b)(5). 

33The Exchange notes that other options 

exchanges permit stock-option orders to be priced 

in decimal increments. See Cboe Options Rule 

5.33(f)(i)(B), Nasdaq ISE Options 3, Section 14(c)(1), 

and Cboe EDGX Rule 21.20(f)(1)(B). 34See id. 

515, to clarify that Complex Customer 

Cross (‘‘cC2C’’) pricing is not changing 

under this proposal. Currently, 

subparagraph (B) of paragraph (3), of 

Rule 515(h), Complex Customer Cross 

(‘‘cC2C’’) Orders provides that cC2C 

Orders 27 may only be entered in the 

minimum trading increments applicable 

to complex orders under Rule 

518(c)(1)(i). Current Rule 518(c)(1)(i) 

provides that the minimum trading 

increments applicable to complex 

orders is $0.01.28 The Exchange 

proposes to amend subparagraph (B) to 

state that, cC2C Orders may only be 

entered in minimum trading increments 

of $0.01. 

Complex Qualified Contingent Cross 

Orders 

cQCC Orders 29 may be entered into 

the Exchange’s System with a stock 

component or without the stock 

component. To support and facilitate 

the pricing proposal for stock-option 

strategies as proposed herein, a cQCC 

entered without the stock component 

will be treated as a complex strategy 

with only option components for 

pricing purposes (pricing in $0.01 

increments only), whereas a cQCC 

entered with the stock component will 

be treated as a complex strategy with a 

stock component under the Exchange’s 

new quoting structure as proposed 

herein. Therefore, the Exchange 

proposes to amend subparagraph (B) of 

paragraph (4), Complex Qualified 

Contingent Cross (‘‘cQCC’’) Orders to 

provide that cQCC Orders may only be 

entered in the minimum trading 

increments applicable to complex 

orders under proposed Rule 518(c)(1)(i) 

or 518(c)(1)(ii) if the cQCC Order 

includes the stock component upon 

entry. 

Additionally, the Exchange proposes 

to adopt new subparagraph (D) to 

paragraph (4) of Rule 515(h) to provide 

a more fulsome description of cQCC 

Order handling of a cQCC Order entered 

without the stock component and a 

cQCC Order entered with the stock 

component. New subparagraph (D) will 

provide that, a cQCC Order may be 

entered with or without the stock 

component. A cQCC Order entered 

without the stock component will be 

treated as a complex strategy with only 

option components. A cQCC Order 

entered with the stock component shall 

be subject to Rule 518.01. A Member 

that submits a cQCC Order to the 

Exchange (with or without the stock 

component) represents that such order 

satisfies the requirements of a qualified 

contingent trade (as described in 

Interpretations and Policies .01 of Rule 

516) and agrees to provide information 

to the Exchange related to the execution 

of the stock component as determined 

by the Exchange and communicated via 

Regulatory Circular.30

2. Statutory Basis 

The Exchange believes that its 

proposed rule change is consistent with 

Section 6(b) of the Act 31 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act 32 in particular, in that it is 

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 

mechanisms 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 the 

proposed rule change benefits investors 

and promotes just and equitable 

principles of trade because it provides 

investors with the ability to price stockoption complex strategies with greater 

precision.33 This provides investors 

with greater opportunities for execution 

as it allows for more accurate pricing of 

stock-option complex strategies. The net 

price of a complex strategy with a stock 

component may result in a price that is 

accurately expressed in a finer decimal 

increment than $0.01 as a result of the 

stock ratio being used. 

Example 1 Stock-Option Complex 

Strategy 

The current market is: 

MBBO XYZ Jan 15 Put 0.95 (10) × 1.00 

(10) 

NBBO XYZ Stock 20.00 (100) × 20.01 

(100) 

Customer strategy: 

A customer order to Buy 1 XYZ Jan 

15 Put and Buy 33 Shares of XYZ is 

received. The customer would like to 

pay $1.00 for the option and pay $20.01 

for the stock for a net price $7.6033 as 

per the calculation of the strategy 

market below. 

The market for the Strategy is: 

Strategy Bid = (Option Bid * Option 

Ratio) + (Stock Bid * Stock Ratio/100) 

Strategy Bid = (0.95 * 1) + (20.00 * .33) 

Strategy Bid = 7.5500 

Strategy Ask = (Option Ask * Option 

Ratio) + (Stock Ask * Stock Ratio/100) 

Strategy Ask = (1.00 * 1) + (20.01 * .33) 

Strategy Ask = 7.6033 

Strategy market = 7.5500 × 7.6033 

As the Exchange does not support 

stock option strategies priced in four 

decimal increments this strategy would 

be sent to a venue that supports four 

decimal pricing for execution. 

Under the Exchange’s proposal to 

permit stock-option complex strategies 

to be expressed in any decimal price as 

determined by the Exchange, if the 

Exchange determines to price stockoption complex strategies in $0.0001 

increments, the above strategy could be 

placed on the Exchange’s Strategy Book 

at its calculated net price. The customer 

who would like to pay $1.00 for the 

option and pay $20.01for the stock can 

now pay $1.00 for the option and pay 

$20.01 for the stock for a net price of 

$7.6033 as per the calculation above. 

Pricing stock-option complex 

strategies in sub-penny increments 

permits more precision pricing and 

allows for complex strategies with a 

stock component to be effectively traded 

on the Exchange. Currently, firms that 

wish to execute these types of strategies 

will not send them to the MIAX 

Exchange due to the current System 

limitation which constrains the price to 

two decimal places, whereas the 

strategy may be more precisely priced in 

sub-penny increments on exchanges 

that permit sub-penny pricing of stockoption complex strategies to four 

decimal places.34

Further, the Exchange believes that 

the proposed rule change removes 


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35See id. 

36See Exchange Rule 518(b)(2)(d). 

37See Exchange Rule 515(h)(3). 

38The Exchange notes that an updated FIX Order 

Interface Specification was published on 11/12/ 

2021 to apprise Members of the change in pricing 

increments from $0.01 to $0.0001 for stock-option 

orders. See MIAX Options, Options Order 

Management using FIX Protocol, FIX Interface 

Specification, version: 2.5a (11/2/2021) available at 

https://www.miaxoptions.com/sites/default/files/ 

page-files/FIX_Order_Interface_FOI_v2.5a.pdf. 

39See CboeEDGX Exchange Rule 21.20(f)(1)(B) 

which provides that Users may express bids and 

offers for a stock-option order (including a QCC 

with Stock Order) in any decimal price the 

Exchange determines. The option leg(s) of a stockoption order may be executed in $0.01 increments, 

regardless of minimum increments otherwise 

applicable to the option leg(s), and the stock leg of 

a stock-option order may be executed in any 

decimal price permitted in the equity market; and 

Cboe Exchange Rule 5.33(f)(1)(B) which similarly 

provides that Users may express bids and offers for 

a stock-option order (including a QCC with Stock 

Order) in any decimal price the Exchange 

determines. The minimum increment for the option 

leg(s) of a stock-option order is $0.01 or greater, 

which the Exchange may determine on a class-byclass basis, regardless of the minimum increments 

otherwise applicable to the option leg(s), and the 

stock leg of a stock-option order may be executed 

in any decimal price permitted in the equity 

market. See also Tradedesk Updates, Cboe Options 

Exchange Announces Support for QCC with an 

Equity Leg and Improved Pricing Precision on 

Complex Orders with an Equity Leg (March 2, 2018) 

(allowing a price with four decimal places on all 

complex orders that include a stock leg and that are 

routed for electronic trading) available at https://

cdn.cboe.com/resources/release_notes/2018/QCCw-equity-leg-and-CPS-4-digit-decimal.pdf. 

40 17 CFR 240.19b–4(f)(6). 

41 17 CFR 240.19b–4(f)(6)(iii). 

42See supra note 3. 

impediments to and perfects the 

mechanisms of a free and open market 

and a national market system and, in 

general, protects investors and the 

public interest by offering similar 

functionality to Members that can be 

found on other competing option 

exchanges.35 Competition benefits 

investors by providing investors an 

additional venue to choose from when 

making order routing decisions. 

Additionally, the Exchange believes 

its proposal to leave Complex Customer 

Cross Order functionality unchanged 

promotes just and equitable principles 

of trade, removes impediments to and 

perfects the mechanisms of a free and 

open market and a national market 

system and, in general, to protects 

investors and the public interest. A 

Complex Customer Cross Order is 

comprised of one Priority Customer 

complex order to buy and one Priority 

Customer complex order to sell at the 

same price and for the same quantity.36

Complex Customer Cross Orders are not 

exposed to the marketplace and are 

executed upon entry, provided that the 

execution is at least $0.01 better than 

the icMBBO, or the best net price of a 

complex order on the Strategy Book, 

whichever is more aggressive.37 The 

Exchange believes that requiring a 

minimum improvement of $0.01 

benefits investors and the public 

interest as it is not a de minimis price 

improvement amount. Further, the 

Exchange does not believe that Members 

on the Exchange are disadvantaged in 

any way by not being able to execute 

Complex Customer Cross Orders with a 

stock component in a sub-penny 

interval, as Members may use the cQCC 

Order type for stock-option complex 

strategies, or expose their stock-option 

complex strategy order to the market via 

the Exchange’s cPRIME for price 

improvement in sub-penny increments. 

To support the pricing of stock-option 

orders in any decimal price the 

Exchange determines, the Exchange is 

proposing to make a number of nonsubstantive conforming changes 

throughout its rules to clearly 

differentiate pricing and support of 

complex strategies with only option 

components, (which remains unchanged 

under this proposal in $0.01 

increments), and pricing and support of 

stock-option complex strategies, which 

may be in any decimal price the 

Exchange determines. The Exchange 

believes that its proposed nonsubstantive changes to add additional 

detail and clarity to the Exchange’s 

rulebook benefits investors and the 

public interest as it provides 

transparency and eliminates the 

potential for confusion regarding the 

operation of the Exchange’s rules. 

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 competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that its 

proposal will impose any burden on 

intra-market competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because all 

Members of the Exchange that transact 

stock-option complex strategies will be 

able to price stock-option complex 

strategies in more precise increments.38

The Exchange does not believe that 

the proposed rule change will impose 

any burden on inter-market competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange believes that its proposal 

may benefit inter-market competition as 

other competing option exchanges offer 

similar price precision for stock-option 

complex strategies.39

Additionally, the non-substantive 

changes proposed by the Exchange will 

have no impact on competition as they 

provide additional clarity and detail in 

the Exchange’s rules and are not 

changes made for any competitive 

purpose. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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 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 and Rule 19b– 

4(f)(6) thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 40 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),41 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. The 

Exchange states that other options 

exchanges currently allow bids and 

offers for stock-option orders to be 

expressed in any decimal price the 

exchange determines and that waiver of 

the operative delay will benefit 

investors by immediately providing 

them with an additional venue that 

offers sub-penny pricing for stockoption orders. The Exchange further 

states that its proposal does not 

introduce new regulatory issues. The 

Commission finds that waiving the 

operative delay is consistent with the 

protection of investors and the public 

interest because other options 

exchanges currently allow market 

participants to express bids and offers 

for stock-option orders in any decimal 

price the exchange determines,42 and 

waiver of the operative delay will 

immediately provide investors with an 

additional venue that allows them to 

express bids and offers for stock-option 

orders in this manner. As discussed 

above, the Exchange believes that the 

proposal will permit more precise and 

accurate pricing of stock-option 

complex strategies, which could provide 

investors with additional execution 


khammond on DSKJM1Z7X2PROD with NOTICES
27676 Federal Register / Vol. 87, No. 89 / Monday, May 9, 2022 / Notices 

43See proposed Exchange Rule 518(c)(1)(iii). See 

also proposed Exchange Rule 518(c)(1)(iv) (stating 

that a complex order will not be executed at a net 

price that would cause any option component of the 

complex strategy to be executed: (A) At a price of 

zero; or (B) ahead of a Priority Customer order on 

the Simple Order Book without improving the 

MBBO of at least one option component of the 

complex strategy). 

44For purposes only of accelerating the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 45 17 CFR 200.30–3(a)(12), (59). 

opportunities. The Commission notes 

that although the proposal will allow 

bids and offers for stock-option orders to 

be expressed in any decimal price the 

Exchange determines, the option 

component(s) of such an order will 

continue to be executed in $0.01 

increments. In addition, the Exchange’s 

rules will continue to protect Priority 

Customer interest by providing, among 

other things, that if any component of a 

complex strategy would be executed at 

a price that is equal to a Priority 

Customer bid or offer on the Simple 

Book, at least one other option 

component of the complex strategy must 

trade at a price that is better than the 

corresponding MBBO.43 The proposal 

also protects investors by codifying in 

the Exchange’s rules that a member that 

submits a cQCC order to the Exchange 

(with or without the stock component) 

represents that the order satisfies the 

requirements of a qualified contingent 

trade and agrees to provide information 

to the Exchange related to the execution 

of the stock component of the order. For 

these reasons, the Commission 

designates the proposal operative upon 

filing.44

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– 

MIAX–2022–17. 

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–MIAX–2022–17. 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–MIAX–2022–17, and 

should be submitted on or before May 

31, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.45

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09853 Filed 5–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: 87 FR 26251, May 3, 

2022. 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETING: Thursday, May 5, 2022 at 

2:00 p.m. 

CHANGES IN THE MEETING: The Closed 

Meeting scheduled for Thursday, May 5, 

2022 at 2:00 p.m., has been cancelled. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information; please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

(Authority: 5 U.S.C. 552b.) 

Dated: May 5, 2022. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2022–10020 Filed 5–5–22; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–61, OMB Control No. 

3235–0073] 

Submission for OMB Review; 

Comment Request 

Upon Written Request Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736. 

Extension: 

Form S–3 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

request for extension of the previously 

approved collection of information 

discussed below. 

Form S–3 (17 CFR 239.13) is used by 

issuers to register securities pursuant to 

the Securities Act of 1933 (15 U.S.C. 77a 

et seq.). Form S–3 provides investors 

with material information to make 

investment decisions regarding 

securities offered to the public. Form 

S–3 takes approximately 466.4566 hours 

per response and is filed by 

approximately 1,651 issuers annually. 

We estimate that 25% of the 466.4566 

hours per response (116.6141 hours) is 

prepared by the issuer for a total annual 

reporting burden of 192,530 hours 

(116.6141 hours per response × 1,651 

responses). 

An agency may conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless it 

displays a currently valid control 

number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 


khammond on DSKJM1Z7X2PROD with NOTICES