36556 Federal Register / Vol. 87, No. 117 / Friday, June 17, 2022 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Rules 6.40P–O and 6.41P–O describe certain 

risk checks available for orders and Market Maker 

quotes on Pillar. The Exchange notes that because 

it has not yet migrated to the Pillar platform, Rules 

6.40–O (Risk Limitation Mechanism), 6.60–O (Price 

Protection—Orders) and 6.61–O (Price Protection— 

Quotes) set forth the applicable risk checks that 

continue to apply to orders and Market Maker 

quotes, which rules are not being modified by this 

filing. The Exchange has announced July 11, 2022 

as the planned migration date for Pillar, as 

announced here: https://www.nyse.com/traderupdate/history#110000421498. 

5See Rule 6.40P–O(a)(1) (defining Entering Firms 

as all OTP Holders and OTP Firms (including those 

acting as Market Makers)). 

6See Rule 6.40P–O(a)(3) (defining Activity-Based 

Risk Controls, which controls are not applied to 

interest represented in open outcry except for CTB 

Orders) and Rule 6.40P–O(a)(5) (defining Interval as 

the configurable time period during which the 

Exchange would determine if an Activity-Based 

Risk Control is breached). 

7See Rule 6.40P–O(c)(2) (applies in the 

reinstatement of an Entering Firm in the event that 

a ‘‘Block Only’’ or ‘‘Cancel and Block’’ Automated 

Breach Action is triggered). 

member thereof; (3) summarily 

suspending a member, participant, or 

person associated with a member, or 

summarily limiting or prohibiting any 

persons with respect to access to or 

services offered by the SRO or a member 

thereof; and (4) delisting a security. 

The Rule enables the Commission to 

obtain reports from the SROs containing 

information regarding SRO 

determinations to delist a security, 

discipline members or associated 

persons of members, deny membership 

or participation or association with a 

member, and similar adjudicated 

findings. The Rule requires that such 

actions be promptly reported to the 

Commission. The Rule also requires that 

the reports and notices supply sufficient 

information regarding the background, 

factual basis and issues involved in the 

proceeding to enable the Commission: 

(1) to determine whether the matter 

should be called up for review on the 

Commission’s own motion; and (2) to 

ascertain generally whether the SRO has 

adequately carried out its 

responsibilities under the Exchange Act. 

It is estimated that approximately 19 

respondents will file a total of 

approximately 912 submissions per year 

(an average of 48 per respondent). The 

Commission estimates that the average 

number of hours necessary to comply 

with the requirements of Rule 19d–1 for 

each submission is 1 hour. The total 

annual burden for all respondents is 

thus 912 hours. The Commission 

estimates that the internal compliance 

cost per respondent is approximately 

$319 per response. The annual internal 

cost of compliance for all respondents is 

thus approximately $290,928 (19 

respondents × 48 responses × $319 per 

response). 

The filing of notices pursuant to Rule 

19d–1 is mandatory for the SROs, but 

does not require the collection of 

confidential information. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent by 

July 18, 2022 to (i) www.reginfo.gov/ 

public/do/PRAMain and (ii) David 

Bottom, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o John Pezzullo, 100 F 

Street NE, Washington, DC 20549, or by 

sending an email to: PRA_Mailbox@

sec.gov. 

Dated: June 13, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13049 Filed 6–16–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95088; File No. SR– 

NYSEArca–2022–34] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rules 6.40P– 

O and 6.41P–O 

June 13, 2022. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on June 3, 

2022, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) 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 self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rules 6.40P–O (Pre-Trade and ActivityBased Risk Controls) and 6.41P–O (Price 

Reasonability Checks—Orders and 

Quotes). The proposed rule change is 

available on the Exchange’s website at 

www.nyse.com, at the principal office of 

the Exchange, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify 

Rules 6.40P–O (Pre-Trade and ActivityBased Risk Controls) and 6.41P–O (Price 

Reasonability Checks—Orders and 

Quotes) to clarify the application of 

certain risk checks on Pillar as set forth 

below.4

First, the Exchange proposes a 

clarifying change to Rule 6.40P–O 

regarding the reference to ‘‘AuctionOnly Orders’’ as described below. Rule 

6.40P–O describes Activity-Based Risk 

Controls that are available to Entering 

Firms.5 Each Entering Firm may apply 

one of three activity-based risk limits to 

its orders and quotes in an options class 

based on specified thresholds measured 

over the course of a specified time 

period or Interval.6 Rule 6.40P–O(c)(2) 

sets forth the potential automated 

breach action for the Activity-Based 

Risk Controls that the Exchange may 

take should an Entering Firm exceed its 

established risk limit. Rule 6.40P–O(d) 

describes how an Entering Firm’s ability 

to enter orders, quotes, and related 

instructions would be reinstated after 

certain automated breach actions have 

been triggered.7 And, Rule 6.40P–O(e) 

sets forth Kill Switch Action 

functionality that allows an Entering 

Firm to expressly direct the Exchange to 

take certain bulk cancel or block actions 

with respect to orders and quotes in the 

event of a breach. The Exchange applies 

the aforementioned actions to the quotes 

and orders submitted by an Entering 


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8See Rule 6.62P–O(c)(1)–(3) (defining as AuctionOnly Orders: Limit-on-Open Orders (LOO Orders), 

Market-on-Open Orders (MOO Orders), and 

Imbalance Offset Orders (IO Orders)). 

9See Rule 6.91P–O(f) (providing, in relevant part, 

that a COA may only be conducted when a complex 

strategy is open for trading). 

10See proposed Rule 6.40P–O(a)(6). See, e.g., 

Rule 6.40P–O(c)(2)(C)(iii) (providing that for 

Entering Firms that opt for ‘‘Cancel and Block’’ 

handling upon trigger of an Activity-Based Risk 

Control, ‘‘the Exchange will cancel all unexecuted 

orders and quotes in the Consolidated Book other 

than Auction-Only Orders and orders designated 

GTC’’). 

11See Rule 6.41P–O(b) and (c) (describing the 

Arbitrage Check and the Intrinsic Value Check, 

respectively). 

12See Rule 6.41P–O(b)(2). 

13See Rule 6.41P–O(c)(2)(1)–(2). 

14See proposed Rule 6.41P–O(b)(2), (c)(1)–(2). 

15See proposed Rule 6.41P–O(a)(3)(iv). The 

Exchange also proposes to make non-substantive 

conforming changes to this paragraph. See proposed 

Rule 6.41P–O(a)(3)(iii) (removing now-extraneous 

and) and (v) (re-numbered existing provision), 

which changes add clarity, transparency, and 

internal consistency to Exchange rules. 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

18 15 U.S.C. 78s(b)(3)(A)(iii). 

19 17 CFR 240.19b–4(f)(6). 

Firm, unless otherwise specified in the 

Rule. In particular, the Rule explicitly 

refers to the handling of Auction-Only 

Orders in the event of a breach. 

Rule 6.62P–O(c) sets forth the order 

types that qualify as ‘‘Auction-Only 

Orders,’’ which orders are designated to 

participate solely in Auctions held 

during the opening (or reopening) of 

option series.8 Subsequent to the 

adoption of Rule 6.40P–O, the Exchange 

adopted Rule 6.91P–O, regarding 

complex order trading. Rule 6.91P– 

O(b)(2)(C) describes ECO GTX Orders. 

ECO GTX Orders are utilized solely for 

a Complex Order Auction or COA, 

which may only occur once a series 

opens or reopens.9 As such, for the 

avoidance of doubt, the Exchange 

proposes to specify (by definition) that 

‘‘Auction-Only Orders’’ referred to 

throughout Rule 6.40P–O refer to the 

order types set forth in Rule 6.62P–O(c) 

(Orders and Modifiers) and (by 

extension) do not include ECO GTX 

Orders which the Exchange will handle 

like any other unexecuted (non-Auction 

Only) order when an Activity-Based 

Risk Control threshold is breached.10

The Exchange believes this proposed 

change would make clear that AuctionOnly Orders do not include ECO GTX 

Orders and, as a result would add 

clarity and transparency to Exchange 

rules making them easier to navigate 

and comprehend. 

Next, the Exchange proposes a 

clarifying change to Rule 6.41P–O 

regarding the application of the ‘‘Price 

Reasonability Checks’’ to orders and 

quotes, which include the Arbitrage 

Check and the Intrinsic Value Check, 

when such checks rely on last sale 

information.11 In particular, the 

Arbitrage Check will reject or cancel (if 

resting) a buy order or quote for call 

options if the price of the order or quote 

‘‘is equal to or greater than the last sale 

price of the underlying security on the 

Primary Market, plus a specified 

threshold to be determined by the 

Exchange and announced by Trader 

Update.’’ 12 Similarly, for the Intrinsic 

Value Check, the Exchange deems the 

Intrinsic Value of a put option as being 

‘‘equal to the strike price minus the last 

sale price of the underlying security on 

the Primary Market’’ and the Intrinsic 

Value of a call option as being ‘‘equal 

to the last sale price of the underlying 

security on the Primary Market minus 

the strike price.’’ 13

However, certain trades such as oddlot transactions are not considered ‘‘lastsale eligible,’’ which means the related 

pricing data is not available/reported. 

As such, when the Exchange does not 

have access to such ‘‘last-sale eligible’’ 

information, it cannot perform the 

Checks as intended. Therefore, the 

Exchange proposes to clarify the 

impacted sections of the Rule to provide 

that the applicable Checks would use as 

a reference ‘‘the price of the last-sale 

eligible trade of the underlying security 

on the Primary Market.’’ 14 In addition, 

and consistent with the aforementioned 

changes, the Exchange proposes to add 

a provision to Rule 6.41P–O(a)(3), 

regarding the circumstances under 

which the Price Reasonability Checks 

do not apply, to include ‘‘any options 

series for which there is no last-sale 

eligible trade in the underlying security 

on the Primary Market since the 

opening of trading.’’ 15 The Exchange 

believes these proposed changes add 

clarity and transparency to Exchange 

rules making them easier to navigate 

and comprehend. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),16 in general, and furthers the 

objectives of Section 6(b)(5),17 in 

particular, because 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 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. 

The Exchange believes that the 

proposed rule change to clarify the 

‘‘Auction-Only Orders’’ covered in Rule 

6.40P–O would promote just and 

equitable principles of trade and remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and 

protect investors because it would add 

clarity and transparency to Exchange 

rules making them easier to navigate 

and comprehend. Moreover, the 

proposed change would avoid potential 

confusion regarding the application of 

Rule 6.40P–O to ECO GTX Orders (as 

mentioned in Rule 6.91P–O). 

The Exchange believes that the 

proposed rule change to clarify that the 

Exchange would rely on ‘‘the price of 

the last-sale eligible trade of the 

underlying security on the Primary 

Market,’’ in conducting certain of the 

Price Reasonability Checks would 

promote just and equitable principles of 

trade and remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system and protect investors because it 

would add clarity and transparency to 

Exchange rules making them easier to 

navigate and comprehend. 

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 

proposed change is not intended to 

address competition, but rather to 

clarify the Exchange’s rules regarding 

certain risk checks and how such checks 

are applied. The proposed change 

would apply to all similarly-situated 

market participants. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 18 and Rule 

19b–4(f)(6) thereunder.19 Because the 

proposed rule change does not: (i) 

significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 


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36558 Federal Register / Vol. 87, No. 117 / Friday, June 17, 2022 / Notices 

20 15 U.S.C. 78s(b)(3)(A)(iii). 

21 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of 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. 

22 15 U.S.C. 78s(b)(2)(B). 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(3). 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 20 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.21

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 22 of the Act 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– 

NYSEArca–2022–34 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–NYSEArca–2022–34. 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–NYSEArca–2022–34 and 

should be submitted on or before July 8, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13040 Filed 6–16–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95094; File No. SR–MSRB– 

2022–04] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change Consisting of Amendments to 

Certain Administrative Rules and 

Articles of the By-Laws of the 

Municipal Securities Rulemaking 

Board Relating to the MSRB’s Officers 

June 13, 2022. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on June 7, 2022 the Municipal 

Securities Rulemaking Board (‘‘MSRB’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared by the MSRB. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The MSRB filed with the Commission 

a proposed rule change consisting of 

amendments to MSRB Rules A–3, A–4, 

A–5, and A–8 and Articles 3, 4, 5, 8, 11, 

12, 13, 14, 15, and 16 of the By-Laws of 

the Municipal Securities Rulemaking 

Board (‘‘Bylaws’’) (the ‘‘proposed rule 

change’’) relating to the MSRB’s officers. 

The MSRB has designated the proposed 

rule change as concerned solely with 

the administration of the self regulatory 

organization under Section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(3) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. As described below, 

the proposed rule change would modify 

provisions regarding the Board’s 

officers. 

The text of the proposed rule change 

is available on the MSRB’s website at 

www.msrb.org/Rules-andInterpretations/SEC-Filings/2022- 

Filings.aspx, at the MSRB’s 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 

MSRB 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 MSRB 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 

Background 

The Bylaws relate to the Board’s 

governance and address topics such as 

Board membership, meetings, and 

officers, among other things. The 

current Bylaws are organized into 16 

Articles (the proposed rule change 

would organize the Bylaws into 14 


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