35842 Federal Register / Vol. 87, No. 113 / Monday, June 13, 2022 / Notices 

58 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Cboe Global Markets, U.S. Equities Market 

Volume Summary, Month-to-Date (May 30, 2022), 

available at https://www.cboe.com/us/equities/ 

market_statistics/. 

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– 

NYSENAT–2022–07 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–NYSENAT–2022–07. 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–NYSENAT–2022–07 and 

should be submitted on or before July 5, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.58

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12649 Filed 6–10–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95060; File No. SRCboeEDGX–2022–029] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

June 7, 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 June 1, 

2022, Cboe EDGX Exchange, Inc. (the 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) the 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) proposes to 

amend its Fee Schedule. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/edgx/) 

[sic], at the Exchange’s Office of the 

Secretary, 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 its 

Fee Schedule applicable to its equities 

trading platform (‘‘EDGX Equity’’) to 

modify certain tiers offered under the 

Add/Remove Volume Tiers, including 

certain Add Volume Tiers, a Growth 

Tier, and a Remove Volume Tier. The 

Exchange proposes to implement these 

changes effective June 1, 2022. 

The Exchange first notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

16 registered equities exchanges, as well 

as a number of alternative trading 

systems and other off-exchange venues 

that do not have similar self-regulatory 

responsibilities under the Exchange Act, 

to which market participants may direct 

their order flow. Based on publicly 

available information,3 no single 

registered equities exchange has more 

than 17% of the market share. Thus, in 

such a low-concentrated and highly 

competitive market, no single equities 

exchange possesses significant pricing 

power in the execution of order flow. 

The Exchange in particular operates a 

‘‘Maker-Taker’’ model whereby it pays 

rebates to members that add liquidity 

and assesses fees to those that remove 

liquidity. The Exchange’s Fee Schedule 

sets forth the standard rebates and rates 

applied per share for orders that provide 

and remove liquidity, respectively. 

Currently, for orders in securities priced 

at or above $1.00, the Exchange 

provides a standard rebate of $0.00160 

per share for orders that add liquidity 

and assesses a fee of $0.0030 per share 

for orders that remove liquidity. For 

orders in securities priced below $1.00, 

the Exchange provides a standard rebate 

of $0.00009 per share for orders that add 

liquidity and assesses a fee of 0.30% of 

the total dollar value for orders that 

remove liquidity. Additionally, in 

response to the competitive 

environment, the Exchange also offers 

tiered pricing which provides Members 

opportunities to qualify for higher 


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4Orders yielding Fee Code ‘‘B’’ are orders adding 

liquidity to EDGX (Tape B). 

5Orders yielding Fee Code ‘‘V’’ are orders adding 

liquidity to EDGX (Tape A). 

6Orders yielding Fee Code ‘‘Y’’ are orders adding 

liquidity to EDGX (Tape C). 

7Orders yielding Fee Code ‘‘3’’ are orders adding 

liquidity to EXGX in the pre and post market (Tapes 

A or C). 

8Orders yielding Fee Code ‘‘4’’ are orders adding 

liquidity to EDGX in the pre and post market (Tape 

B). 

9 ‘‘ADV’’ means average daily volume calculated 

as the number of shares added to, removed from, 

or routed by, the Exchange, or any combination or 

subset thereof, per day. 

10 ‘‘TCV’’ means total consolidated volume 

calculated as the volume reported by all exchanges 

and trade reporting facilities to a consolidated 

transaction reporting plan for the month for which 

the fees apply. 

11 ‘‘TCV’’ means total consolidated volume 

calculated as the volume reported by all exchanges 

and trade reporting facilities to a consolidated 

transaction reporting plan for the month for which 

the fees apply. 

12 ‘‘ADV’’ means average daily volume calculated 

as the number of shares added to, removed from, 

or routed by, the Exchange, or any combination or 

subset thereof, per day. ADV is calculated on a 

monthly basis. 

13Orders yielding fee code ‘‘BB’’ are orders 

removing liquidity from EDGX (Tape B). 

14Orders yielding fee code ‘‘N’’ are orders 

removing liquidity from EDGX (Tape C). 

15Orders yielding fee code ‘‘W’’ are orders 

removing liquidity from EDGX (Tape A). 

16 ‘‘Step-Up ADAV’’ means ADAV in the relevant 

baseline month subtracted from current ADAV. 

‘‘ADAV’’ means average daily volume calculated as 

the number of shares added per day. ADAV is 

calculated on a monthly basis. 

rebates or reduced fees where certain 

volume criteria and thresholds are met. 

Tiered pricing provides an incremental 

incentive for Members to strive for 

higher tier levels, which provides 

increasingly higher benefits or discounts 

for satisfying increasingly more 

stringent criteria. 

Modifications To Add Volume Tiers 

Under footnote 1 of the Fee Schedule, 

the Exchange currently offers various 

Add/Remove Volume Tiers. In 

particular, the Exchange offers four Add 

Volume Tiers that each provide an 

enhanced rebate for Members’ 

qualifying orders yielding fee codes B4, 

V 5, Y 6, 3 7 or 4 8, where a Member 

reaches certain add volume-based 

criteria. Specifically, the Add Volume 

Tiers are as follows: 

• Tier 1 offers an enhanced rebate of 

$0.0020 per share for qualifying orders 

(i.e., yielding fee codes B, V, Y, 3 or 4) 

where a Member adds an ADV 9 greater 

than or equal to 0.20% of the TCV.10

• Tier 2 offers an enhanced rebate of 

$0.0023 per share for qualifying orders 

(i.e., yielding fee codes B, V, Y, 3 or 4) 

where a Member adds an ADV greater 

than or equal to 0.30% of the TCV. 

• Tier 3 offers an enhanced rebate of 

$0.0027 per share for qualifying orders 

(i.e., yielding fee codes B, V, Y, 3 or 4) 

where a Member adds an ADV greater 

than or equal to 0.40% of the TCV. 

• Tier 4 offers an enhanced rebate of 

$0.0029 per share for qualifying orders 

(i.e., yielding fee codes B, V, Y, 3 or 4) 

where a Member adds an ADV greater 

than or equal to 0.65% of the TCV. 

The Exchange now proposes to 

modify Tier 2, remove existing Tier 3, 

and, consequently, renumber Tier 4. 

Specifically, as proposed, the Tiers 

would provide for the following: 

• Proposed Tier 2 would offer an 

enhanced rebate of $0.0027 per share 

(instead of $0.0023 per share) for 

qualifying orders (i.e., yielding fee codes 

B, V, Y, 3 or 4) where a Member adds 

an ADV greater than or equal to 0.28% 

of the TCV (instead of 0.30% of the 

TCV) or Member adds an ADV greater 

than or equal to 30,000,000 (not a 

criteria in current Tier 2). 

• Proposed Tier 3 (current Tier 4) 

would offer an enhanced rebate of 

$0.0029 per share for qualifying orders 

(i.e., yielding fee codes B, V, Y, 3 or 4) 

where a Member adds an ADV greater 

than or equal to 0.65% of the TCV. 

Although the Exchange proposes to 

eliminate the current Tier 3, thus 

limiting the amount of available Add 

Volume Tiers and corresponding rebates 

available to Members, the Exchange 

proposes to increase the rebate in Tier 

2, slightly ease the percentage of ADV 

over TCV, and provide an additional 

prong of criteria for Members to qualify 

for the enhanced rebate under proposed 

Tier 2, which serves to incentivize 

market participants to provide 

additional displayed liquidity on the 

Exchange, thereby contributing to a 

deeper and more liquid market, which 

benefits all market participants and 

provides greater execution opportunities 

on the Exchange. The Exchange does 

not propose any changes to the current 

Add Volume Tier 1. 

Modification to Growth Volume Tier 4 

In addition to the Add/Remove 

Volume Tiers under footnote 1 of the 

Fee Schedule, the Exchange offers four 

Growth Tiers that each provide an 

enhanced rebate for Members’ 

qualifying orders yielding fee codes B, 

V, Y, 3 or 4, where a Member reaches 

certain add volume-based criteria, 

including ‘‘growing’’ its volume over a 

certain baseline month. Currently, 

Growth Tier 4 provides an enhanced 

rebate of $0.0034 per share to MPIDs 

that (1) add a Step-Up ADAV from 

October 2021 equal to or greater than 

0.10% of the TCV 11 or MPIDs that add 

a Step-Up ADAV from October 2021 

equal to or greater than 16 million 

shares; and (2) MPIDs that add an 

ADV 12 equal to or greater than 0.30% of 

TCV or MPIDs that add an ADV equal 

to or greater than 30 million shares. The 

Exchange now proposes to amend the 

criteria in prong 2 of Growth Tier 4 by 

increasing the second add ADV criteria 

from greater than or equal to 30 million 

shares to 35 million shares. 

The Exchange notes that the purpose 

of the Growth Volume Tiers is to 

encourage MPIDs to grow their volume 

on the Exchange as compared to a 

baseline month. By increasing one of the 

add ADV criteria in the second prong of 

Growth Volume Tier 4 while keeping 

the enhanced rebate the same, the 

proposed rule change slightly increases 

the current criteria’s difficulty, which is 

intended to encourage liquidity adding 

MPIDs on the Exchange to strive to 

reach Growth Tier 4 by increasing the 

provision of liquidity to the Exchange, 

which increases execution opportunities 

and provides for overall enhanced price 

discovery and price improvement 

opportunities on the Exchange. 

Increased overall order flow benefits all 

Members by contributing towards a 

robust and well-balanced market 

ecosystem. 

Modification To Remove Volume Tier 

The Exchange also offers two Remove 

Volume Tiers under the Add/Remove 

Volume Tiers in footnote 1 of the Fee 

Schedule. The Remove Volume Tiers 

each assess a reduced fee for Members’ 

qualifying orders yielding fee codes 

BB13, N 14 and W15 where a Member 

reaches certain add volume-based 

criteria. Specifically, the Exchange 

proposes to amend Remove Volume Tier 

1, which currently offers a reduced fee 

of $0.00275 per share in securities 

priced above $1.00 and 0.28% of the 

total dollar value in securities priced 

below $1.00 for qualifying orders (i.e., 

yielding fee codes BB, N or W) where (1) 

Member adds a Step-Up ADAV 16 from 

June 2021 greater than or equal to 0.10% 

of the TCV or Member adds a Step-Up 

ADAV from June 2021 greater than or 

equal to 8,000,000; and (2) Member has 

a total remove ADV greater than or 

equal to 0.60% of the TCV or Member 

has a total remove ADV greater than or 

equal to 60,000,000. The Exchange 

proposes to amend the criteria in the 

second prong of Remove Volume Tier 1 

by decreasing the second ADV remove 

criteria from a total remove ADV of 

greater than or equal to 60,000,000 to a 

total remove ADV of greater than or 

equal to 45,000,000. 


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17 15 U.S.C. 78f. 

18 15 U.S.C. 78f(b)(4). 

19 15 U.S.C. 78f(b)(5). 

20See BZX Equities Fee Schedule, Footnote 1, 

Add/Remove Volume Tiers. 

21See EDGX Equities Fee Schedule, Footnote 1, 

Add/Remove Volume Tiers. 

The proposed amendment to Remove 

Volume Tier 1 would lessen the 

difficulty of the existing criteria while 

keeping the reduced fee the same. The 

Exchange believes lowering the total 

remove ADV criteria in the second 

prong of Remove Volume Tier 1 without 

changing the reduced fee available to 

Members will encourage Members to 

strive to meet the criteria by removing 

liquidity on the Exchange to receive the 

same reduced fee. An increase in 

remove liquidity on the Exchange 

signals an overall increase in activity 

from other market participants, 

contributes to a deeper, more liquid 

market and provides additional 

execution opportunities for active 

market participants, which benefits the 

entire market system. The Exchange 

does not propose any changes to current 

Remove Volume Tier 2. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

objectives of Section 6 of the Securities 

and Exchange Act of 1933 (the ‘‘Act’’),17

in general, and furthers the objectives of 

Section 6(b)(4),18 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

issuers and other persons using its 

facilities. The Exchange also believes 

that the proposed rule change is 

consistent with the objectives of Section 

6(b)(5) 19 requirements that the rules of 

an exchange be 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 mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest, and, 

particularly, is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

As described above, the Exchange 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. The 

proposed rule change reflects a 

competitive pricing structure designed 

to incentivize market participants to 

direct their order flow to the Exchange, 

which the Exchange believes would 

enhance market quality to the benefit of 

all Members. 

The Exchange believes that the 

proposed changes to certain Add/ 

Remove Volume Tiers, specifically, Add 

Volume Tiers 2 and 3, Remove Volume 

Tier 1, and Growth Tier 4, are 

reasonable, equitable and not unfairly 

discriminatory because each tier, as 

modified, continues to be available to 

all Members and provide Members an 

opportunity to receive an enhanced 

rebate or a reduced fee. As noted above, 

the Exchange operates in a highly 

competitive market. The Exchange is 

only one of 16 equity venues to which 

market participants may direct their 

order flow, and it represents a small 

percentage of the overall market. It is 

also only one of several maker-taker 

exchanges. Competing equity exchanges 

offer similar rates and tiered pricing 

structures to that of the Exchange, 

including schedules of rebates and fees 

that apply based upon members 

achieving certain volume thresholds. 

Specifically, the Exchange notes that 

relative volume-based incentives and 

discounts have been widely adopted by 

exchanges,20 including the Exchange,21

and are reasonable, equitable and nondiscriminatory because they are open to 

all Members on an equal basis and 

provide additional benefits or discounts 

that are reasonably related to (i) the 

value to an exchange’s market quality 

and (ii) associated higher levels of 

market activity, such as higher levels or 

liquidity provision and/or growth 

thresholds, as well as assess similar fees 

or rebates for similar types of orders, to 

that of the Exchange. 

In particular, the Exchange believes 

the proposed rule changes to certain 

Add/Remove Volume Tiers are 

reasonable because the tiers will 

continue to provide Members with an 

opportunity to receive an enhanced 

rebate or reduced fee by encouraging 

Members to increase their order flow to 

the Exchange. In particular, the 

Exchange believes that the changes to 

the Add Volume Tiers will provide 

reasonable means for Members to 

receive an enhanced rebate for adding 

liquidity on the Exchange. While the 

Exchange has proposed to remove the 

existing Tier 3, it believes that by 

proposing to lower the percentage of 

ADV over TCV in Tier 2 and proposing 

to add an additional ADV criteria to Tier 

2, Members will continue to be 

incentivized to provide liquidity adding 

volume to the Exchange. The Exchange 

also believes that the proposed 

enhanced rebate for Add Volume Tier 2 

continues to be commensurate with the 

proposed criteria. That is, the rebate 

reasonably reflects the difficulty in 

achieving the applicable criteria as 

amended. Furthermore, the Exchange 

believes that the proposed increase to 

one of the ADV criteria in Growth Tier 

4 is reasonable because the proposal 

represents a modest increase in volume 

as compared to the previous criteria. 

The Growth Tiers incentivize Members 

to grow their add volume as compared 

to a baseline month in order to receive 

an enhanced rebate and the proposed 

increase in add ADV represents a 

reasonable incentive for MPIDs to 

increase their liquidity adding order 

flow in order to receive an enhanced 

rebate that reasonably reflects the 

difficulty in achieving the criteria. 

Additionally, the Exchange believes the 

proposed lower one of the remove ADV 

criteria in Remove Volume Tier 1 is 

reasonable because it will encourage 

Members to increase their remove 

volume on the Exchange, as the 

proposed change will make it easier for 

Members to receive a reduced fee for 

removing liquidity on the Exchange. 

The Exchange believes the proposed 

changes to the Add/Remove Volume 

Tiers are reasonably designed overall to 

incentivize Members to continue to add 

and remove liquidity on the Exchange, 

thus deepening the Exchange’s liquidity 

pool, offering additional cost savings to 

Members, supporting the quality of 

price discovery, promoting market 

transparency, and improving market 

quality for all investors. 

The Exchange believes the proposed 

changes to the various Add/Remove 

Volume Tiers represent an equitable 

allocation of rebates and fees and are 

not unfairly discriminatory because all 

Members are eligible for those tiers and 

would have the opportunity to meet a 

tier’s criteria and would receive the 

proposed enhanced rebate or reduced 

fee if such criteria is met. Without 

having a view of activity on other 

market and off-exchange venues, the 

Exchange has no way of knowing 

whether this proposed rule change 

would definitely result in any Members 

qualifying for the proposed tiers. While 

the Exchange has no way of predicting 

with certainty how the proposed tiers 

will impact Member activity, the 

Exchange anticipates that at least one 

Member will be able to satisfy the 

criteria proposed for Add Volume Tier 

2, Remove Volume Tier 1, and Growth 

Tier 4. The Exchange also notes that the 

proposed changes will not adversely 


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Federal Register / Vol. 87, No. 113 / Monday, June 13, 2022 / Notices 35845 

22Supra note 3. 

23See Securities Exchange Act Release No. 51808 

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

24NetCoalition 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)). 

25 15 U.S.C. 78s(b)(3)(A). 

26 17 CFR 240.19b–4(f). 

impact any Member’s ability to qualify 

for other reduced fee or enhanced 

rebated tiers. Should a Member not meet 

the proposed criteria under the 

modified tier, the Member will merely 

not receive that corresponding 

enhanced rebate or reduced fee. The 

Exchange also believes the proposal to 

eliminate a tier is equitable and not 

unfairly discriminatory because it 

applies to all Members, in that, such tier 

will not be available for any Member. 

The Exchange believes that the 

proposed changes to the Add/Remove 

Volume Tiers will benefit all market 

participants by incentivizing continuous 

liquidity and, thus, deeper more liquid 

markets as well as increased execution 

opportunities. Particularly, the 

proposals are designed to incentivize 

liquidity, which further contributes to a 

deeper, more liquid market and provide 

even more execution opportunities for 

active market participants at improved 

prices. This overall increase in activity 

deepens the Exchange’s liquidity pool, 

offers additional cost savings, supports 

the quality of price discovery, promotes 

market transparency and improves 

market quality, for all investors. 

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. Rather, as 

discussed above, the Exchange believes 

that the proposed change would 

encourage the submission of additional 

order flow to a public exchange, thereby 

promoting market depth, execution 

incentives and enhanced execution 

opportunities, as well as price discovery 

and transparency for all Members. As a 

result, the Exchange believes that the 

proposed changes further the 

Commission’s goal in adopting 

Regulation NMS of fostering 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 

The Exchange believes the proposed 

rule change does not impose any burden 

on intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Particularly, 

the proposed tier changes will apply to 

all Members equally in that all Members 

will continue to be eligible for Add Tier 

2, Remove Volume Tier 1 and Growth 

Tier 4, have a reasonable opportunity to 

meet the tiers’ criteria and will receive 

the enhanced rebate or reduced fee on 

their qualifying orders if such criteria 

are met. Also, as stated above, the 

proposal to eliminate a tier applies to all 

Members, in that, such tier will not be 

available for any Member. The Exchange 

does not believe the proposed changes 

burden competition, but rather, enhance 

competition as they are intended to 

increase the competitiveness of EDGX 

by amending existing pricing incentives 

in order to attract order flow and 

incentivize participants to increase their 

participation on the Exchange, 

providing for additional execution 

opportunities for market participants 

and improved price transparency. 

Greater overall order flow, trading 

opportunities, and pricing transparency 

benefit all market participants on the 

Exchange by enhancing market quality 

and continuing to encourage Members 

to send orders, thereby contributing 

towards a robust and well-balanced 

market ecosystem. 

Next, the Exchange believes the 

proposed rule change does not impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

As previously discussed, the Exchange 

operates in a highly competitive market. 

Members have numerous alternative 

venues that they may participate on and 

direct their order flow, including other 

equities exchanges, off-exchange 

venues, and alternative trading systems. 

Additionally, the Exchange represents a 

small percentage of the overall market. 

Based on publicly available information, 

no single equities exchange has more 

than 17% of the market share.22

Therefore, no exchange possesses 

significant pricing power in the 

execution of order flow. Indeed, 

participants can readily choose to send 

their orders to other exchange and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. 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.’’ 23 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’ . . .’’.24

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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 25 and paragraph (f) of Rule 

19b–4 26 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– 

CboeEDGX–2022–029 on the subject 

line. 


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27 17 CFR 200.30–3(a)(12). 

1A redacted copy of the Agreement is attached to 

the verified notice. An unredacted copy has been 

filed under seal along with a motion for protective 

order pursuant to 49 CFR 1104.14. That motion is 

addressed in a separate decision. 

2EVWR states that the Sugar Camp Mine consists 

of two separate mines, M Class and Viking. 

According to EVWR, M Class was forced to shut 

down due to a fire at the mine and Viking had to 

close to accommodate the relocation of long wall 

mining equipment to another location at the mine. 

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–CboeEDGX–2022–029. 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. 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– 

CboeEDGX–2022–029, and should be 

submitted on or before July 5, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–12647 Filed 6–10–22; 8:45 am] 

BILLING CODE 8011–01–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. FD 36622] 

Evansville Western Railway, Inc.— 

Temporary Trackage Rights 

Exemption—Illinois Central Railroad 

Company 

Evansville Western Railway, Inc. 

(EVWR), a Class II railroad, has filed a 

verified notice of exemption under 49 

CFR 1180.2(d)(8) for the acquisition of 

temporary trackage rights, for overhead 

operations, over approximately 11.7 

miles of rail line owned by Illinois 

Central Railroad Company (CN) between 

Sugar Camp, Ill., at milepost 61.9, and 

Dial, Ill., at milepost 73.6, pursuant to 

the terms of a written temporary 

trackage rights agreement dated May 23, 

2022 (Agreement).1

EVWR states that the purpose of the 

temporary trackage rights is to allow it 

to load unit coal trains at Pond Creek 

Mine near Dial until EVWR’s service at 

the Sugar Camp Mine can be restored 

following closure due to a mine fire and 

the unrelated, but necessary, relocation 

of long wall mining equipment.2

According to EVWR, the temporary 

trackage rights will expire and terminate 

on the earlier of: (i) July 15, 2022, or (ii) 

the re-opening of the Sugar Camp Mine 

‘‘with sufficient production to fulfill the 

required requested loadings of unit 

trains of coal.’’ 

EVWR concurrently filed a petition 

for waiver of the 30-day period under 49 

CFR 1180.4(g)(1) to allow the proposed 

temporary trackage rights to become 

effective immediately. By decision 

served June 8, 2022, the Board granted 

EVWR’s request. As a result, this 

exemption is now effective. 

As a condition to this exemption, any 

employees affected by the acquisition of 

the temporary trackage rights will be 

protected by the conditions imposed in 

Norfolk & Western Railway—Trackage 

Rights—Burlington Northern, Inc., 354 

I.C.C. 605 (1978), as modified in 

Mendocino Coast Railway—Lease & 

Operate—California Western Railroad, 

360 I.C.C. 653 (1980), and any 

employees affected by the 

discontinuance of those trackage rights 

will be protected by the conditions set 

out in Oregon Short Line Railroad— 

Abandonment Portion Goshen Branch 

Between Firth & Ammon, in Bingham & 

Bonneville Counties, Idaho, 360 I.C.C. 

91 (1979). 

If the verified notice contains false or 

misleading information, the exemption 

is void ab initio. Petitions to revoke the 

exemption under 49 U.S.C. 10502(d) 

may be filed at any time. The filing of 

a petition to revoke will not 

automatically stay the effectiveness of 

the exemption. 

All pleadings, referring to Docket No. 

FD 36622, must be filed with the 

Surface Transportation Board either via 

e-filing or in writing addressed to 395 E 

Street SW, Washington, DC 20423–0001. 

In addition, a copy of each pleading 

must be served on EVWR’s 

representative, William A. Mullins, 

Baker & Miller PLLC, Suite 300, 2401 

Pennsylvania Ave. NW, Washington, DC 

20037. 

According to EVWR, this action is 

categorically excluded from 

environmental review under 49 CFR 

1105.6(c) and from historic reporting 

under 49 CFR 1105.8(b)(3). 

Board decisions and notices are 

available at www.stb.gov. 

Decided: June 8, 2022. 

By the Board, Scott M. Zimmerman, Acting 

Director, Office of Proceedings. 

Kenyatta Clay, 

Clearance Clerk. 

[FR Doc. 2022–12702 Filed 6–10–22; 8:45 am] 

BILLING CODE 4915–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Railroad Administration 

[Docket No. FRA–2022–0046] 

Palmetto Railways Request for 

Approval of a Railroad Safety Program 

Plan and Product Safety Plan 

AGENCY: Federal Railroad 

Administration (FRA), Department of 

Transportation (DOT). 

ACTION: Notice of availability and 

request for comments. 

SUMMARY: This document provides the 

public with notice that, on August 18, 

2021, Palmetto Railways submitted a 

request for FRA approval of its Railroad 

Safety Program Plan (RSPP) and Product 

Safety Plan (PSP) for use of the RailSoft 

TrackAccess system in autonomous 

mode on its Charity Church 

Subdivision. As this request for FRA’s 

approval involves a railroad’s PSP, FRA 

is publishing this notice and inviting 

public comment on the document. 

DATES: Written comments must be 

received on or before July 28, 2022. FRA 

will consider comments filed after this 

date to the extent practicable. 

ADDRESSES: Comments: Comments 

related to this Notice may be submitted 

by going to https://www.regulations.gov 

and following the online instructions for 

submitting comments. 

Instructions: All submissions must 

include the agency name and docket 

number (FRA–2022–0046). Please note 

that comments submitted online via 

www.regulations.gov are not 


khammond on DSKJM1Z7X2PROD with NOTICES