Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Notices 36353 

13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 94773 

(April 11, 2022), 87 FR 25065 (‘‘Notice’’). The 

Commission received comment letters that are not 

germane to the proposed rule change and are 

available on the Commission’s website at: https:// 

www.sec.gov/comments/sr-ise-2022-10/ 

srise202210.htm. 

4 In Amendment No. 1, the Exchange revised the 

three examples provided in the proposal for greater 

clarity. Because the changes in Amendment No. 1 

do not materially alter the substance of the 

proposed rule change or raise unique or novel 

regulatory issues, Amendment No. 1 is not subject 

to notice and comment. Amendment No. 1 is 

available on the Commission’s website at: https:// 

www.sec.gov/comments/sr-ise-2022-10/ 

srise202210.htm. 

5Supplementary Material .03(e) of Options 4, 

Section 5 states, ‘‘Strike Interval. During the month 

prior to expiration of an option class that is selected 

for the Short Term Option Series Program pursuant 

to this Rule (‘‘Short Term Option’’), the strike price 

intervals for the related non-Short Term Option 

(‘‘Related non-Short Term Option’’) shall be the 

same as the strike price intervals for the Short Term 

Option. The Exchange may open for trading Short 

Term Option Series on the Short Term Option 

Opening Date that expire on the Short Term Option 

Expiration Date at strike price intervals of (i) $0.50 

or greater where the strike price is less than $100, 

and $1 or greater where the strike price is between 

$100 and $150 for all option classes that participate 

in the Short Term Options Series Program; (ii) $0.50 

for option classes that trade in one dollar 

increments and are in the Short Term Option Series 

Program; or (iii) $2.50 or greater where the strike 

price is above $150.’’ 

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–2022–025 and 

should be submitted on or before July 7, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12939 Filed 6–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–127, OMB Control No. 

3235–0108] 

Proposed Collection; Comment 

Request: Extension; Rule 14f–1 

Upon Written Request Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

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’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Under Exchange Act Rule 14f–1 (17 

CFR 240.14f–1), if a person or persons 

have acquired securities of an issuer in 

a transaction subject to Sections 13(d) or 

14(d) of the Exchange Act, and changes 

a majority of the directors of the issuer 

otherwise than at a meeting of security 

holders, then the issuer must file with 

the Commission and transmit to security 

holders information related to the 

change in directors within 10 days prior 

to the date the new majority takes office 

as directors. The information filed 

under Rule 14f–1 must be filed with the 

Commission and is publicly available. 

We estimate that it takes approximately 

18 burden hours to provide the 

information required under Rule 14f–1 

and that the information is filed by 

approximately 30 respondents for a total 

annual reporting burden of 540 hours 

(18 hours per response × 30 responses). 

Written comments are invited on: (a) 

whether this proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden imposed by the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication by August 15, 2022. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. 

Please direct your written comment to 

David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: June 10, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12946 Filed 6–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95085; File No. SR–ISE– 

2022–10] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Order Approving a Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Amend ISE 

Options 4, Section 5, Series of Options 

Contracts Open for Trading 

June 10, 2022. 

I. Introduction 

On April 11, 2022, Nasdaq ISE, LLC 

(‘‘ISE’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Supplementary Material .07 to 

Options 4, Section 5 to limit the strike 

price intervals for certain Short Term 

Options Series with an expiration date 

more than twenty-one days from the 

listing date. The proposed rule change 

was published for comment in the 

Federal Register on April 27, 2022.3 On 

June 1, 2022, the Exchange filed 

Amendment No. 1, which replaced and 

superseded the proposed rule change in 

its entirety.4 This order approves the 

proposed rule change, as modified by 

Amendment No. 1. 

II. Description of Proposed Rule 

Change, as Modified by Amendment 

No. 1 

Background 

Pursuant to Supplementary Material 

.03 to Options 4, Section 5, the 

Exchange may open for trading certain 

option series that expire at the close of 

business on each of the next five Fridays 

that are business days and are not 

Fridays in which monthly options series 

or quarterly option series expire (‘‘Short 

Term Option Series Program’’). 

Supplementary Material .03(e) 5

specifies the strike intervals for the 

Short Term Option Series Program. 

To reduce the density of strike 

intervals that would be listed in later 

weeks, ISE amended Options 4, Section 

5 to limit the intervals between strikes 


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36354 Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Notices 

6See Securities Exchange Act Release No. 91930 

(May 18, 2021), 86 FR 27907 (May 24, 2021) (SR– 

ISE–2021–09) (‘‘Strike Interval Proposal’’). 7See supra note 6. See also Supplementary 

Material .03(f) of Options 4, Section 5 and 

Supplementary Material .07 to Options 4, Section 

5. 8The Share Price would be the closing price on 

the primary market on the last day of the calendar 

quarter and the Average Daily Volume would be the 

total number of options contracts traded in a given 

security for the applicable calendar quarter divided 

by the number of trading days in the applicable 

calendar quarter The Average Daily Volume would 

be the total number of options contracts traded in 

a given security for the applicable calendar quarter 

divided by the number of trading days in the 

applicable calendar quarter. Beginning on the 

second trading day in the first month of each 

calendar quarter, the Average Daily Volume shall be 

calculated by utilizing data from the prior calendar 

quarter based on Customer-cleared volume at The 

Options Clearing Corporation. For options listed on 

the first trading day of a given calendar quarter, the 

Average Daily Volume shall be calculated using the 

quarter prior to the last trading calendar quarter. 

See Supplementary Material .07 to Options 4, 

Section 5. 

9See Amendment No. 1, supra note 4, at 13–14. 

10See e.g., Amendment No. 1, supra note 4, 

Examples 1–3 at 8–10. 

11See Amendment No. 1, supra note 4, at 7. 

12See id. at 7–8. 

13See id. at 14. 

14See id. at 8. The Exchange provided three 

examples in Amendment No. 1. See also supra note 

10. 

15See Amendment No. 1, supra note 4, at 6. 

16See id. 

17See id. at 7. 

in equity options listed as part of the 

Short Term Option Series Program, 

excluding Exchange-Traded Fund 

Shares and ETNs, that have an 

expiration date more than twenty-one 

days from the listing date (‘‘Outer 

STOs’’).6 The Strike Interval Proposal 

adopted Supplementary Material .07 to 

Options 4, Section 5, which specifies 

the applicable strike intervals for Outer 

STOs, and Supplementary Material 

.03(f), which provides that the strike 

intervals for Outer STOs shall be based 

on the table within Supplementary 

Material .07.7 Currently, the table 

within Supplementary Material .07 to 

Options 4, Section 5 provides: 8

SHARE PRICE

Tier Average daily volume Less than $25 $25 to less 

than $75 

$75 to less 

than $150 

$150 to less 

than $500 

$500 or 

greater 

1 ........................... Greater than 5,000 ............................ $0.50 $1.00 $1.00 $5.00 $5.00 

2 ........................... Greater than 1,000 to 5,000 .............. 1.00 1.00 1.00 5.00 10.00 

3 ........................... 0 to 1,000 .......................................... 2.50 5.00 5.00 5.00 10.00 

According to the Exchange, the Strike 

Interval Proposal was designed to 

reduce the density of strike intervals 

that would be listed in later weeks 

within the Short Term Options Series 

Program by utilizing limitations for 

intervals between strikes with an 

expiration date more than twenty-one 

days from the listing date.9 However, 

there may be instances where the 

allowable strike intervals under 

Supplementary Material .07 and 

Supplementary Material .03(e) conflict, 

potentially resulting in narrower strike 

intervals in those series with more than 

twenty-one days from the listing date.10

Proposal 

The Exchange proposes to amend 

Supplementary Material .07 to Options 

4, Section 5, to state that when 

Supplementary Material .07 and 

Supplementary Material .03(e) conflict, 

the greater interval would apply. 

Specifically, the Exchange proposes to 

add a new sentence within 

Supplementary Material .07 which 

states, ‘‘To the extent there is a conflict 

between applying Supplementary 

Material .03(e) and the below table, the 

greater interval would apply.’’ 11

Supplementary Material .03(e) would 

apply to Outer STOs only in the event 

that the interval would be greater.12 The 

Exchange states that this rule change 

would harmonize strike intervals as 

between inner weeklies (those having 

less than twenty-one days from the 

listing date) and outer weeklies (those 

having more than twenty-one days from 

the listing date) so that strike intervals 

are not widening closer to expiration.13

The Exchange provides Example 1 

below to illustrate this point: 14

Example 1: Assume a Tier 1 stock that 

closed on the last day of Q1 with a 

quarterly share price higher than $75 

but less than $150. Therefore, utilizing 

the table within Supplementary 

Material .07, the interval would be $1.00 

for strikes added during Q2 even for 

strikes above $150. Next, assume during 

Q2 the share price rises above $150. 

Utilizing only the table within 

Supplementary Material .07, the interval 

would be $1.00 even though the stock 

is now trading above $150 because the 

Share Price for purposes of 

Supplementary Material .07 was 

calculated utilizing data from the prior 

calendar quarter. However, a separate 

rule, Supplementary Material .03(e), 

provides that the Exchange may list a 

Short Term Option Series at $2.50 

intervals where the strike price is above 

$150. In other words, there is a potential 

conflict between the permitted strike 

intervals above $150. In this example, 

Supplementary Material .07 would 

specify a $1.00 interval whereas 

Supplementary Material .03(e) would 

specify a $2.50 interval. As proposed, 

the Exchange proposes to apply the 

greater interval. The greater interval 

would then be $2.50 as per 

Supplementary Material .03(e) in this 

scenario. Therefore, the following 

strikes would be eligible to list: $152.5 

and $157.5. For strikes less than $150, 

the following strikes would be eligible 

to list: $149 and $148 because Short 

Term Options Series with expiration 

dates more than 21 days from the listing 

date as well as Short Term Options 

Series with expiration dates less than 21 

days from the listing date would both be 

eligible to list $1 intervals pursuant to 

Supplementary Material .07 and 

Supplementary Material .03(e) of 

Options 5, Section 4. 

The Exchange also proposes to amend 

the first sentence of Supplementary 

Material .07 to provide, ‘‘With respect to 

listing Short Term Option Series in 

equity options, excluding ExchangeTraded Fund Shares and ETNs, which 

have an expiration date more than 

twenty-one days from the listing date, 

the following table, which specifies the 

applicable interval for listing, will apply 

as noted within Supplementary Material 

.03(f).’’ 15 The Exchange proposes to add 

the phrase ‘‘which specifies the 

applicable interval for listing’’ to make 

clear that the only permitted intervals 

are as specified in the table within 

Supplementary Material .07, except in 

the case where Supplementary Material 

.03(e) provides for a greater interval as 

described above.16 The Exchange also 

proposes to update the reference within 

this sentence from Supplementary 

Material .03(e) to Supplementary 

Material .03(f), as paragraph (f) indicates 

when the table within Supplementary 

Material .07 applies.17

The Exchange also proposes to delete 

the sentence from Supplementary 

Material .07, which states, ‘‘The below 

table indicates the applicable strike 


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Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Notices 36355 

18See id. at 10. 

19See id. 

20See id. 

21See id. at 10–11. 

22See id. at 11. 

23See id. 

24See id. 

25See id. 

26 In approving this proposed rule change, as 

modified by Amendment No. 1, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

27 15 U.S.C. 78f(b)(5). 

28See Amendment No. 1, supra note 4, at 13–14. 

29See id. at 14. 

30See id. at 14. 

31See also Securities Exchange Act Release No. 

91125 (Feb. 12, 2021), 86 FR 10375 (Feb. 19, 2021) 

(SR–BX–2020–032) (Order approving proposal by 

Nasdaq BX, Inc. to limit Short Term Options Series 

intervals). 

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

33 15 U.S.C. 78f(b)(2). 

34 17 CFR 200.30–3(a)(12). 

intervals and supersedes Supplementary 

Material .03(d) which permits 

additional series to be opened for 

trading on the Exchange when the 

Exchange deems it necessary to 

maintain an orderly market, to meet 

customer demand or when the market 

price of the underlying security moves 

substantially from the exercise price or 

prices of the series already opened.’’ 18

The Exchange states that Supplementary 

Material .07 is related to strike intervals, 

but does not supersede rules governing 

the addition of option series.19 The 

Exchange further states that 

Supplementary Material .07 and 

Supplementary Material .03(d) do not 

conflict, and deleting the reference to 

Supplementary .03(d) will avoid 

confusion.20

Finally, the Exchange proposes to 

delete the sentence from Supplementary 

Material .03, which states, 

‘‘Notwithstanding the limitations 

imposed by Supplementary Material 

.07, this proposal does not amend the 

range of strikes that may be listed 

pursuant to Supplementary Material .03, 

regarding the Short Term Option Series 

Program.’’ 21 The Exchange states that 

while the range limitations continue to 

be applicable to the table within 

Supplementary Material .07, the strike 

ranges do not conflict with strike 

intervals and therefore the sentence is 

not necessary.22 The Exchange further 

states that Supplementary Material 

.03(f) otherwise indicates when 

Supplementary Material .07 would 

apply.23

The Exchange proposes to implement 

this rule change on August 1, 2022.24

The Exchange represents that it will 

issue an Options Trader Alert to notify 

Members of the implementation date.25

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change, as 

modified by Amendment No. 1, is 

consistent with the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.26 In 

particular, the Commission finds that 

the proposed rule change, as modified 

by Amendment No. 1, is consistent with 

Section 6(b)(5) of the Act,27 which 

requires, among other things, that the 

Exchange’s rules be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

The Exchange states that the Strike 

Interval Proposal was designed to 

reduce the density of strike intervals 

that have an expiration date more than 

twenty-one days from the listing date.28

In support of the current proposal, the 

Exchange states it would result in a 

reduction of the number of strikes listed 

in a manner consistent with the intent 

of the Strike Interval Proposal, which 

was to reduce strikes which were 

further out in time and would 

harmonize strike intervals for the Short 

Term Option Series such that strike 

intervals would not widen as the 

expiration date approaches.29 The 

Exchange further states that Strike 

Interval Proposal continues to reduce 

the number of strikes listed on ISE, 

allowing Lead Market Makers and 

Market Makers to expend their capital 

in the options market in a more efficient 

manner, thereby improving overall 

market quality on ISE.30

The Exchange’s proposal to apply the 

greater interval to Outer STOs in cases 

where Supplementary Material .03(e) 

and .07 conflict serves to increase, and 

thus limit, the intervals between strikes 

in those cases. The proposal seeks to 

continue to focus more granular strike 

increments on those series where they 

are more relevant, applicable, and likely 

more in demand from customers and 

eliminate certain clusters of relatively 

granular strikes in further out weekly 

series, consistent with the Strike 

Interval Proposal.31 Further, the 

proposal would add additional clarity to 

the Exchange’s Short Term Option 

Series rules, which should provide 

greater certainty as to the permitted 

strike intervals and minimize confusion. 

The Commission believes that the 

proposal is reasonably designed to 

effectuate the Exchange’s goal of 

balancing a reduction in the number of 

strikes in the Short Term Option Series 

Program with the needs of market 

participants. Accordingly, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 1, is consistent with Section 6(b)(5) 

of the Act 32 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,33 that the 

proposed rule change (SR–ISE–2022– 

10), as modified by Amendment No. 1, 

be and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.34

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12940 Filed 6–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–306, OMB Control No. 

3235–0522] 

Proposed Collection; Comment 

Request: Extension; Rule 701 

Upon Written Request Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

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’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 701(17 CFR 230.701) under the 

Securities Act of 1933 (‘‘Securities Act’’) 

(15 U.S.C. 77a et seq.) provides an 

exemption for certain issuers from the 

registration requirements of the 

Securities Act for limited offerings and 

sales of securities issued under 

compensatory benefit plans or contracts. 

The purpose of Rule 701 is to ensure 

that a basic level of information is 

available to employees and others when 

substantial amounts of securities are 

issued in compensatory arrangements. 

We estimate that approximately 800 

companies annually rely on the Rule 

701 exemption and that it takes 2 hours 

to prepare each response. We estimate 


khammond on DSKJM1Z7X2PROD with NOTICES