33854 Federal Register / Vol. 87, No. 107 / Friday, June 3, 2022 / Notices 

16 Id. 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

agency in extreme but plausible market 

conditions. The Framework supports 

ICC’s ability to maintain sufficient risk 

requirements and enhances ICC’s 

approach to identifying potential 

weaknesses in the risk management 

system through the use of independent 

validations and periodic reviews. The 

amended Framework continues to 

provide a process for reviewing and 

enhancing the models that ICC utilizes 

as part of its risk processes. The changes 

strengthen the Framework and ensure 

completeness by expanding the scope to 

clearing house models, including 

procedures regarding ad hoc reviews of 

methodologies to ensure objective and 

effective review, and including 

procedures regarding remedial actions 

and timelines to ensure remediation of 

report items in an appropriate and 

timely manner. Additional changes 

ensure the Framework remains up-todate, transparent, and focused on clearly 

articulating the policies and procedures 

used to support ICC’s model validation 

efforts, including by reorganizing text, 

removing unnecessary references to 

policies, and specifying when an 

independent periodic review 

component is not applicable. In ICC’s 

view, the proposed rule change would 

facilitate and enhance its ability to carry 

out its validation processes and 

procedures in respect of the models 

utilized as part of ICC’s risk processes 

or other methodologies. As such, the 

proposed amendments would 

strengthen ICC’s ability to maintain its 

financial resources and withstand the 

pressures of defaults, consistent with 

the requirements of Rule 17Ad– 

22(e)(4)(ii).16

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICC does not believe the proposed 

rule change would have any impact, or 

impose any burden, on competition. 

The proposed changes to the Framework 

will apply uniformly across all market 

participants. They are generally 

designed to enhance, clarify, and more 

clearly document ICC’s model 

validation processes and procedures 

and include clarifications on the scope 

and applicability of the Framework, 

responsibilities of relevant stakeholders, 

and other validation elements. ICC does 

not believe these amendments would 

affect the costs of clearing or the ability 

of market participants to access clearing. 

Therefore, ICC does not believe the 

proposed rule change would impose any 

burden on competition that is 

inappropriate in furtherance of the 

purposes of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. ICC will notify the 

Commission of any written comments 

received by ICC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

ICC–2022–006 on the subject line. 

Paper Comments 

Send paper comments in triplicate to 

Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–ICC–2022–006. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Credit and on ICE 

Clear Credit’s website at https://

www.theice.com/clear-credit/regulation. 

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–ICC–2022–006 and 

should be submitted on or before June 

24, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–11877 Filed 6–2–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95001; File No. SR–MIAX– 

2022–22] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rule 519, 

MIAX Order Monitor 

May 27, 2022. 

Pursuant to the provisions of 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 May 13, 2022, Miami International 

Securities Exchange, LLC (‘‘MIAX 

Options’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 


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3A market order is an order to buy or sell a stated 

number of option contracts at the best price 

available at the time of execution. See Exchange 

Rule 516(a). 

4The 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. 

5The term ‘‘Book’’ means the electronic book of 

buy and sell orders and quotes maintained by the 

System. See Exchange Rule 100. 

6See Exchange Rule 503. 

7See Exchange Rule 519(a). 

8The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

9See Exchange Rule 510(b). 

10See Exchange Rule 510(a). 

11The term ‘‘Help Desk’’ means the Exchange’s 

control room consisting of Exchange staff 

authorized to make certain determinations on 

behalf of the Exchange. The Help Desk shall report 

to and be supervised by a senior executive of the 

Exchange. See Exchange Rule 100. 

12The Exchange proposes to convert its current 

$0.10 threshold setting to the Exchange default 

Threshold Setting. 

13See Exchange Rule 519(a)(1)(i) and (ii). 

14See Exchange Rule 510, Minimum Price 

Variations and Minimum Trading Increments. 

15A reevaluation of an order occurs when the 

order has been routed to an away exchange and is 

returned to the Exchange partially, or completely, 

unfilled. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Exchange 519, MIAX Order 

Monitor. 

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 519, MIAX Order 

Monitor to (i) establish an Exchange 

default Threshold Setting for market 

orders 3 to sell an option when the 

national best bid is zero; (ii) provide 

that a Member 4 may supply their own 

pre-set value to be used as the 

Threshold Setting; (iii) reorganize the 

rule text for ease of reference; and (iv) 

adopt new rule text to add additional 

detail regarding the Exchange’s process 

for evaluating and reevaluating market 

orders to sell. 

Background 

Currently, in order to avoid the 

occurrence of potential obvious or 

catastrophic errors on the Exchange the 

MIAX Order Monitor will prevent 

certain orders from executing or being 

placed on the Book 5 at prices outside 

pre-set standard limits. Beginning after 

the Opening Process 6 is complete, the 

MIAX Order Monitor will be operational 

each trading day until the close of 

trading.7 Exchange Rule 519(a)(1)(i) 

provides that if the Exchange upon 

initial receipt or reevaluation evaluates 

a market order to sell an option when 

the national best bid is zero and the 

Exchange’s disseminated offer is equal 

to or less than $0.10, the System 8 will 

convert the market order to sell to a 

limit order to sell with a limit price of 

one Minimum Trading Increment.9 In 

this case, such sell orders will 

automatically be placed on the Book in 

time priority and will be displayed at 

the appropriate Minimum Price 

Variation.10 Exchange Rule 519(a)(1)(ii) 

provides that if the Exchange upon 

initial receipt or reevaluation evaluates 

a market order to sell an option when 

the national best bid is zero and the 

national best offer is greater than $0.10, 

the System will cancel the market order 

to sell. 

Proposal 

The Exchange now proposes to allow 

Members to determine their own pre-set 

value to be used as the threshold setting 

(‘‘Threshold Setting’’) that the Exchange 

will use when evaluating market orders 

to sell when the national best bid is zero 

and the national best offer is less than, 

equal to, or greater than, the Threshold 

Setting. Members are not constrained by 

the Exchange in determining their 

Threshold Setting and may set the 

threshold at any value in accordance to 

their business and risk tolerances. 

Members will communicate their 

desired threshold value to the 

Exchange’s Help Desk 11 in a form and 

manner to be determined by the 

Exchange and communicated to 

Members via Regulatory Circular. The 

Exchange will establish a default 

Threshold Setting of $0.10 (the current 

setting) and communicate its value to 

Members via Regulatory Circular.12

The Exchange proposes to adopt new 

subparagraph (i) to paragraph (a)(1) of 

Rule 519 to provide that, for the 

purposes of this Rule a Member may 

establish a pre-set value to be used as 

the Threshold Setting by 

communicating its value to the 

Exchange’s Help Desk in a form and 

manner to be determined by the 

Exchange and communicated via 

Regulatory Circular. The Exchange will 

establish a default Threshold Setting of 

$0.10 and communicate its value to 

Members via Regulatory Circular. If a 

Member does not establish a Threshold 

Setting the Exchange default value will 

be used. Currently, the Exchange uses a 

value of $0.10 as its threshold value for 

purposes of evaluating or reevaluating 

market orders to sell when the national 

best bid is zero.13

The Exchange proposes to adopt new 

subparagraph (ii) to paragraph (a)(1) of 

Rule 519 to provide that, if the 

Exchange receives a market order to sell 

an option when the national best bid is 

zero and the national best offer is less 

than or equal to the Threshold Setting, 

the System will convert the market 

order to sell, to a limit order to sell, with 

a limit price of one Minimum Trading 

Increment.14 The Exchange proposes to 

use the national best offer as the 

reference price in determining how to 

handle a market order to sell when the 

national best bid is zero as the national 

best offer better represents the current 

market conditions. This provision is 

consistent with the operation of the 

current rule, however the Threshold 

Setting used for evaluation purposes 

under the Exchange’s proposal may now 

be either the Exchange’s default setting 

of $0.10 or the Member’s Threshold 

Setting. 

The Exchange proposes to adopt new 

subparagraph (iii) to paragraph (a)(1) of 

Rule 519 to provide that, if the 

Exchange reevaluates 15 a market order 

to sell an option when the resulting 

national best bid is zero and either the 

trade price, route price, or national best 

offer is less than or equal to the 

Threshold Setting, the System will 

convert the market order to sell, to a 

limit order to sell, with a limit price of 

one Minimum Trading Increment. In the 

event the Exchange receives a market 

order to sell and the Exchange is zero 

bid but an away market is not, the 

Exchange will route the order to that 

away exchange at the away market 

price, the ‘‘route price.’’ For the 

purposes of this rule, the execution 

price of a trade in the subject series is 


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16 Id. 

17See Exchange Rule 519(a)(1)(i). 

18The term ‘‘MBBO’’ means the best bid or offer 

on the Exchange. See Exchange Rule 100. 

19The term ‘‘ABBO’’ or ‘‘Away Best Bid or Offer’’ 

means the best bid(s) or offer(s) disseminated by 

other Eligible Exchanges (defined in Rule 1400(g)) 

and calculated by the Exchange based on market 

information received by the Exchange from OPRA. 

See Exchange Rule 100. 

20The term ‘‘NBBO’’ means the national best bid 

or offer as calculated by the Exchange based on 

market information received by the Exchange from 

OPRA. See Exchange Rule 100. 

21 15 U.S.C. 78f(b). 

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

considered the ‘‘trade price.’’ The 

Exchange uses the route price, trade 

price, or national best offer to determine 

the proper disposition of a market order 

to sell when the national best bid 

becomes zero. 

Current paragraph (i) describes the 

initial evaluation and reevaluation 

process of a market order to sell whereas 

each process is given separate treatment 

under this proposal. Specifically, new 

proposed paragraph (ii) describes the 

initial evaluation process of a market 

order to sell when the national best bid 

is zero and new proposed paragraph (iii) 

describes the reevaluation process of a 

market order to sell when the national 

best bid becomes zero. The Exchange 

believes this format provides additional 

clarity to the Exchange’s rules regarding 

its order handling process when the 

Exchange reevaluates a market order to 

sell when the national best bid becomes 

zero. 

The Exchange proposes to adopt new 

subparagraph (iv) to paragraph (a)(1) of 

Rule 519 to provide that, in either case 

of (ii) or (iii) above, such sell orders will 

automatically be placed on the Book in 

time priority and will be displayed at 

the appropriate Minimum Price 

Variation.16 The Exchange notes that 

this language is identical to the current 

rule text.17

The Exchange proposes to adopt new 

subparagraph (v) to paragraph (a)(1) of 

Rule 519 to provide that, if the 

Exchange receives a market order to sell 

an option when the national best bid is 

zero and the national best offer is greater 

than the Threshold Setting, the System 

will reject the order. This provision is 

consistent with the operation of the 

current rule, however under the 

Exchange’s proposal the Threshold 

Setting used for evaluation purposes 

may now be either the Exchange default 

setting of $0.10 or the Member’s 

Threshold Setting. 

The Exchange proposes to adopt new 

subparagraph (vi) to paragraph (a)(1) of 

Rule 519 to provide that, if the 

Exchange reevaluates a market order to 

sell an option when the resulting 

national best bid is zero and both (A) 

the trade price or route price, and (B) 

the national best offer, are greater than 

the Threshold Setting, the System will 

reject the order or cancel any 

unexecuted balance of the order. The 

Exchange uses the route price or trade 

price, in conjunction with the national 

best offer to determine the proper 

disposition of a market order to sell 

when the national best bid becomes 

zero. The Exchange believes considering 

both the route price or trade price, and 

the national best offer, provides a clear 

indication of the current market 

conditions when either the route price 

or trade price and the national best offer 

is greater than the Threshold Setting 

and allows the Exchange to make the 

proper determination regarding the 

disposition of the order. 

The proposed rule text provides 

additional detail regarding the System’s 

behavior when the Exchange reevaluates 

a market order to sell and the national 

best bid has become zero. Example 1 

below describes the System processing 

when the national best bid is below the 

Threshold Setting, and Example 2 

describes the System processing when 

the national best bid is above the 

Threshold Setting. 

Example 1 

MPV: $0.05 

Exchange default Threshold Setting: 

$0.10 

Member selected Threshold Setting: 

$0.25 

MBBO 18 (0) 0.00 × 5.00 (10) 

ABBO 19 (10) 0.10 × 0.15 (10) 

NBBO 20 (10) 0.10 × 0.15 (10) 

Market order to sell 20 contracts is 

received by the Exchange. 

The Exchange routes the order to the 

away exchange by sending a limit order 

to sell 10 contracts at $0.10 (the route 

price). 

The order is executed on the away 

exchange, sell 10 at $0.10, and the away 

market becomes zero bid. 

MBBO: (0) 0.00 × 5.00 (10) 

ABBO: (0) 0.00 × 0.15 (10) 

NBBO: (0) 0.00 × 0.15 (10) 

Using the Member selected Threshold 

Setting of $0.25 to reevaluate the order, 

the remainder of the order (10 contracts) 

would be converted to a limit order to 

sell and placed on the Exchange as the 

national best offer ($0.15) (and the route 

price of $0.10) is less than or equal to 

the Member selected Threshold Setting 

of $0.25. The 10 contracts would then 

be displayed on the Exchange at an offer 

price of one minimum trading 

increment or $0.05. 

MBBO: (0) 0.00 × 0.05 (10) 

ABBO: (0) 0.00 × 0.15 (10) 

NBBO: (0) 0.00 × 0.05 (10) 

If the Exchange default Threshold 

Setting was used for the evaluation, the 

remainder of the order would be 

cancelled as the national best offer 

(0.15) is greater than the Exchange 

default Threshold Setting of $0.10. 

Example 2 

MPV: $0.05 

Exchange default Threshold Setting: 

$0.10 

Member selected Threshold Setting: 

$0.25 

MBBO (0) 0.00 × 5.00 (10) 

ABBO (10) 0.40 × 0.50 (10) 

NBBO (10) 0.40 × 0.50 (10) 

Market order to sell 20 contracts is 

received by the Exchange. The Exchange 

is zero bid for that series and routes the 

order to the away exchange by sending 

a limit order to sell 10 at $0.40 (the 

route price). 

The order is executed on the away 

exchange, sell 10 at $0.40, and the away 

market becomes zero bid. 

MBBO: (0) 0.00 × 5.00 (10) 

ABBO: (0) 0.00 × 0.50 (10) 

NBBO: (0) 0.00 × 0.50 (10) 

Using the Member selected Threshold 

Setting of $0.25 to reevaluate the order, 

the remainder of the order (10 contracts) 

would be cancelled as both (i) the route 

price ($0.40) and (ii) the national best 

offer ($0.50) are greater than the 

Threshold Setting ($0.25). 

2. Statutory Basis 

MIAX believes that its proposed rule 

change is consistent with Section 6(b) of 

the Act 21 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 22

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 its proposal 

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, protects 

investors and the public interest by 

allowing Members to establish the 

threshold setting for the evaluation of 

market orders to sell when the national 

best bid is zero. The Exchange believes 


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23The Exchange notes that the Nasdaq Phlx does 

not have a threshold evaluation and, in the case 

where the bid price for any options series is $0.00, 

a Market Order accepted into the System to sell that 

series shall be considered a Limit Order to sell at 

a price equal to the minimum trading increment as 

defined in Nasdaq Phlx Options 3, Section 3. 

Orders will be placed on the Limit Order book in 

the order in which they were received by the 

System. With respect to Market Orders to sell which 

are submitted prior to the Opening Process and 

persist after the Opening Process, those orders are 

posted at a price equal to the minimum trading 

increment as defined in Options 3, Section 3. See 

Nasdaq Phlx Options 3, Section 10(b). 

24See Securities Exchange Act Release No. 80121 

(February 28, 2017), 82 FR 12656 (March 6, 2017) 

(SR–MIAX–2017–09). 

25See MIAX Options Regulatory Circular 2017– 

15, Mandatory Usage of MIAX Options Order 

Monitor Protections (March 21, 2017) available at 

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

circular-files/MIAX_Options_RC_2017_15.pdf. 

26See Securities Exchange Act Release No. 80230 

(March 13, 2017), 82 FR 14251 (March 17, 2017) 

(SR–MIAX–2017–12). 

27See MIAX Options Regulatory Circular 2018– 

37, Changes to MIAX Options Price Protection 

Process (August 20, 2018) available at https://

www.miaxoptions.com/sites/default/files/circularfiles/MIAX_Options_RC_2018_37.pdf. 

28See Cboe Rule 5.34(a)(1)(A) which provides 

that if the System receives a sell market order in 

a series after it is open for trading with an NBB of 

zero: (i) If the NBO in the series is less than or equal 

to $0.50, then the System converts the market order 

to a limit order with a limit price equal to the 

minimum trading increment applicable to the series 

and enters the order into the Book with a timestamp 

based on the time it enters the Book. If the order 

has a Time-in-Force of GTC or GTD that expires on 

a subsequent day, the order remains on the Book 

as a limit order until it executes, expires, or the 

User cancels it. (ii) if the NBO in the series is greater 

than $0.50, then the System cancels or rejects the 

market order, or routes the market order to PAR for 

manual handling, subject to a User’s instructions. 

that allowing Members to determine the 

threshold setting provides greater 

flexibility and allows the Member to 

tailor the threshold setting to the 

business and risk tolerances of the 

Member. 

The Exchange believes its proposal to 

allow Members the flexibility to 

establish their own pre-set value to be 

used for evaluation purposes of market 

orders to sell when the national best bid 

is zero allows Members to align their 

risk protections with their risk 

tolerance. Members have the discretion 

to set their pre-set value to whatever 

value best aligns to their risk profile, 

which may be as low as $0.00.23 The 

Exchange provides Members the ability 

to tailor risk protection functionality to 

the risk profile of the Member, and has 

allowed Members to customize their 

risk protection settings for other risk 

protections. Specifically, the Exchange 

allows Members to set the maximum 

size of an order for the purposes of the 

MIAX Order Monitor Order Size 

Protection,24 and if the maximum size of 

an order is not designated by the 

Member, the Exchange provides an 

Exchange defined default value.25

Additionally, the Exchange provides 

Members the option to set a price 

protection limit on a per order basis,26

and orders received without a price 

protection limit specified receive the 

Exchange defined default value.27 The 

current proposal to allow Members to 

determine a pre-set value to be used as 

the Threshold Setting continues the 

Exchange’s approach of allowing a 

Member to customize its risk 

protections to better align to the risk 

tolerance of the Member. 

The Exchange believes its proposal to 

reorganize the current rule text to 

describe each scenario separately (i.e., 

evaluation of a market order to sell 

when the national best bid is zero and 

the national best offer is less than or 

equal to the Threshold Setting 

(proposed paragraph (ii)); reevaluation 

of a market order to sell when the 

national best bid becomes zero and the 

national best offer is less than or equal 

to the Threshold Setting (proposed 

paragraph (iii)); initial evaluation of a 

market order to sell when the national 

best bid is zero and the national best 

offer is greater than the Threshold 

Setting (proposed paragraph (v)); and 

reevaluation of a market order to sell 

when the national best bid becomes zero 

and the national best offer is greater 

than the Threshold Setting (proposed 

paragraph vi))) better organizes the rule 

text. The Exchange believes discussing 

each scenario separately and describing 

the evaluations that are performed by 

the System to determine the proper 

disposition of the order provides 

transparency and clarity in the 

Exchange’s rules. 

The Exchange believes its proposal 

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, protects 

investors and the public interest by 

providing additional detail regarding 

the Exchange’s process for reevaluating 

market orders to sell when the national 

best bid becomes zero. The Exchange 

believes it is in the interest of investors 

and the public to accurately describe the 

behavior of the Exchange’s System in its 

rules as this information may be used by 

investors to make decisions concerning 

the submission of their orders. 

Transparency and clarity are consistent 

with the Act because it removes 

impediments to and perfects the 

mechanism of a free and open market 

and a national market system, and, in 

general, protects investors and the 

public interest by accurately describing 

how market orders to sell in zero bid 

series are handled on the Exchange. It 

is in the public interest for rules to be 

accurate and concise so as to eliminate 

the potential for confusion. 

Additionally, the Exchange believes 

its proposal 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, protects investors and the 

public interest by re-organizing the rule 

text for ease of reference. The Exchange 

believes that Exchange rules should be 

clear and transparent so as to avoid the 

potential for confusion. 

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 as all Members 

that submit market orders to the 

Exchange will be treated equally and the 

Rules of the Exchange apply equally to 

all Exchange Members. Additionally, 

the proposal allows each Member to 

determine the pre-set value to be used 

as the Threshold Setting and allows 

each Member to align their Threshold 

Setting to their risk tolerance. 

The Exchange does not believe that its 

proposal will impose any burden on 

inter-market competition as the 

Exchange’s proposal is not a 

competitive filing but one that provides 

additional detail regarding the 

Exchange’s process for reevaluating 

market orders to sell when the national 

bid becomes zero. Additionally, the 

Exchange’s proposal is similar to the 

rules of at least one other options 

exchange.28

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 foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

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


khammond on DSKJM1Z7X2PROD with NOTICES
33858 Federal Register / Vol. 87, No. 107 / Friday, June 3, 2022 / Notices 

29 15 U.S.C. 78s(b)(3)(A). 

30 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Self-Regulatory Organizations; ICE Clear Europe 

Limited; Notice of Filing of Proposed Rule Change 

Relating to Amendments to the ICE Clear Europe 

Operational Risk Management Policy and Risk 

Identification Framework, Exchange Act Release 

No. 34–94649 (Apr. 8, 2022); 87 FR 22273 (Apr. 14, 

2022) (SR–ICEEU–2022–008) (‘‘Notice’’). 

4This description is substantially excerpted from 

the Notice, 87 FR 22273. Capitalized terms not 

otherwise defined herein have the meanings 

assigned to them in the ORMP, the RIF, or ICE Clear 

Europe’s Rules, as applicable. 

of the Act 29 and Rule 19b–4(f)(6) 30

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 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–2022–22 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–MIAX–2022–22. 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–2022–22, and 

should be submitted on or before June 

24, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–11876 Filed 6–2–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95004; File No. SR–ICEEU– 

2022–008] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Order Approving 

Proposed Rule Change Relating to 

Amendments to the ICE Clear Europe 

Operational Risk Management Policy 

and Risk Identification Framework 

May 27, 2022. 

I. Introduction 

On March 31, 2022, ICE Clear Europe 

Limited (‘‘ICE Clear Europe’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (the ‘‘Act’’) 1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to amend its Operational Risk 

Management Policy (the ‘‘ORMP’’) and 

add to ICE Clear Europe’s rule 

framework the Risk Identification 

Framework (the ‘‘RIF’’). The proposed 

rule change was published for comment 

in the Federal Register on April 14, 

2022.3 The Commission did not receive 

comments regarding the proposed rule 

change. For the reasons discussed 

below, the Commission is approving the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

i. ORMP 

The current ORMP describes ICE 

Clear Europe’s process for identifying, 

assessing, managing, monitoring, and 

reporting operational risks and requires 

that ICE Clear Europe assess its 

operational risks at least annually.4 The 

proposed rule change would maintain 

the overall process as found in the 

current ORMP but revise the description 

of the specific steps that makeup the 

overall process—generally by 

incorporating into the ORMP additional 

detail regarding current practices 

relating to those steps—and modify 

certain aspects of some of those steps. 

First, the proposed rule change would 

explicitly incorporate into the ORMP 

ICE Clear Europe’s Enterprise Risk 

Register, which ICE Clear Europe also 

refers to as the Risk Register Dashboard 

(referred to herein as the ‘‘Risk 

Dashboard’’). Currently, once ICE Clear 

Europe identifies operational risks 

pursuant to the existing ORMP, it 

documents those risks in the Risk 

Dashboard. The Risk Dashboard 

therefore serves as an inventory of the 

specific operational risks that ICE Clear 

Europe has identified as part of its 

existing risk identification process 

under the ORMP. The Risk Dashboard 

also includes information about, among 

other things, the ICE Clear Europe 

department that owns the risk (the ‘‘Risk 

Owner’’), the level of inherent risk, and 

the overall rating for the control that 

mitigates each risk. However, while the 

Risk Dashboard currently is used as part 

of ICE Clear Europe’s risk identification 

process under the ORMP, it is not 

actually referenced in the ORMP. The 

proposed rule change would formally 

incorporate the Risk Dashboard into the 

ORMP and include it as an appendix to 

the ORMP. The proposed rule change 

also would add to the ORMP a 

description of the process for reviewing 

and updating the Risk Register as part 

of ICE Clear Europe’s existing annual 

assessment of its operational risks, 

thereby formalizing that process as a 

requirement under the ORMP. 

The current ORMP requires that Risk 

Owners complete the risk identification 

process at least once a year and specifies 

that this process shall not only allow the 


khammond on DSKJM1Z7X2PROD with NOTICES