Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Notices 28063 

12 See Cboe Global Markets, U.S. Options Market 

Volume Summary by Month (April 21, 2022), 

available at http://markets.cboe.com/us/options/ 

market_share/. 

13 See Securities Exchange Act Release No. 51808 

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

14 NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. 

2010) (quoting Securities Exchange Act Release No. 

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

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

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

16 17 CFR 240.19b–4(f). 17 17 CFR 200.30–3(a)(12). 

participate on and direct their order 

flow, including 15 other options 

exchanges, as well as off-exchange 

venues, where competitive products are 

available for trading. Based on publicly 

available information, no single options 

exchange has more than 16% of the 

market share of executed volume of 

options trades.12 Therefore, no exchange 

possesses significant pricing power in 

the execution of option order flow. 

Moreover, the Commission has 

repeatedly expressed its preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 

and, also, recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 13 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

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

that competition for order flow is 

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

the U.S. national market system, buyers 

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

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . ..’’.14 Accordingly, the 

Exchange does not believe its proposed 

changes to the incentive programs 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

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

of the Act 15 and paragraph (f) of Rule 

19b–4 16 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2022–022 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to: Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2022–022. 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–CBOE–2022–022 and 

should be submitted on or before May 

31, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09959 Filed 5–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–247, OMB Control No. 

3235–0259] 

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: 

Rule 19h–1 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.) the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 19h–1 (17 CFR 240.19h–1), under 

the Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.). 

Rule 19h–1 prescribes the form and 

content of notices and applications by 

self-regulatory organizations (‘‘SROs’’) 

regarding proposed admissions to, or 

continuances in, membership, 

participation or association with a 

member of any person subject to a 

statutory disqualification. 


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28064 Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Notices 

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

2 17 CFR 240.19b–4. 

The Commission uses the information 

provided in the submissions filed 

pursuant to Rule 19h–1 to review 

decisions by SROs to permit the entry 

into or continuance in the securities 

business of persons who have 

committed serious misconduct. The 

filings submitted pursuant to the Rule 

also permit inclusion of an application 

to the Commission for consent to 

associate with a member of an SRO 

notwithstanding a Commission order 

barring such association. 

The Commission reviews filings made 

pursuant to the Rule to ascertain 

whether it is in the public interest to 

permit the employment in the securities 

business of persons subject to statutory 

disqualification. The filings contain 

information that is essential to the staff’s 

review and ultimate determination on 

whether an association or employment 

is in the public interest and consistent 

with investor protection. 

It is estimated that approximately 20 

respondents will make submissions 

pursuant to this Rule annually. With 

respect to submissions for Rule 19h–1(a) 

notices, and based upon past 

submissions, the staff estimates that 

respondents will make a total of 11 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(a) 

notices is 80 hours (for a total annual 

burden for all respondents in the 

amount of 17,600 hours). With respect 

to submissions for Rule 19h–1(a)(4) 

notifications, and based upon past 

submissions, the staff estimates that 

respondents will make a total of 9 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(a)(4) 

notifications is 80 hours (for a total 

annual burden for all respondents in the 

amount of 14,400 hours). With respect 

to submissions for Rule 19h–1(b), and 

based upon past submissions, the staff 

estimates that respondents will make a 

total of 28 submissions per year. The 

staff estimates that the average number 

of hours necessary to complete a 

submission pursuant to Rule 19h–1(b) is 

13 hours (for a total annual burden for 

all respondents in the amount of 7,280 

hours). With respect to submissions for 

Rule 19h–1(d), and based upon past 

submissions, the staff estimates that 

respondents will make a total of 5 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(d) is 

80 hours (for a total annual burden for 

all respondents in the amount of 8,000 

hours). The aggregate annual burden for 

all respondents is thus approximately 

47,280 hours (17,600 +14,400 + 7,280 + 

8,000). 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to (i) www.reginfo.gov/public/do/ 

PRAMain and (ii) David Bottom, 

Director/Chief Information Officer, 

Securities and Exchange Commission, c/ 

o John Pezzullo, 100 F Street NE, 

Washington, DC 20549, or by sending an 

email to: PRA_Mailbox@sec.gov. 

Dated: May 4, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09951 Filed 5–9–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94847; File No. SR–MEMX– 

2022–10] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing of a Proposed 

Rule Change To Adopt Rules To 

Govern the Trading of Options on the 

Exchange for a New Facility Called 

MEMX Options 

May 4, 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 21, 

2022, MEMX LLC (‘‘MEMX’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by 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 with the 

Commission a proposed rule change to 

adopt rules to govern the trading of 

options on the Exchange. The text of the 

proposed rule change is provided in 

Exhibit 5. 

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 

Purpose 

The Exchange is proposing to adopt a 

series of rules in connection with 

MEMX Options, which will be a facility 

of the Exchange. MEMX Options will 

operate an electronic trading system 

developed to trade options (the 

‘‘System’’) leveraging the Exchange’s 

existing robust and resilient technology 

platform that it uses to operate its cash 

equities market today. The fundamental 

premise of the proposal is that the 

Exchange will operate its options 

market much as it operates its cash 

equities market today and in a manner 

similar to that of other options 

exchanges, with a simplified suite of 

conventional order types and 

functionality that is designed to provide 

for an efficient, robust, and transparent 

order matching process. Much of the 

proposed functionality for MEMX 

Options is substantially similar to that 

offered by other options exchanges, 

primarily Cboe BZX Exchange, Inc. 

(‘‘BZX’’). Thus, the Exchange proposes 

to adopt rules applicable to MEMX 

Options that are substantively identical 

or substantially similar to the approved 

rules of BZX applicable to the BZX 

options market (‘‘BZX Options’’), with 

certain proposed changes or omissions 

that are described below. 

The System will provide for the 

electronic display and execution of 

orders in price/time priority without 

regard to the status of the entities that 

are entering orders. All Exchange 

Members will be eligible to participate 

in MEMX Options provided that the 

Exchange specifically authorizes them 

to trade in the System. The System will 


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