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
36356 Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 93849 

(Dec. 22, 2021), 86 FR 74204 (Dec. 29, 2021 

(‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 94181 

(Feb. 8, 2022), 87 FR 8305 (Feb. 14, 2022). 

6See Securities Exchange Act Release No. 94483 

(Mar. 22, 2022), 87 FR 17346 (Mar. 28, 2022) 

(‘‘OIP’’). 

7See letter to Vanessa Countryman, Secretary, 

Commission, from Hope M. Jarkowski, General 

Counsel, New York Stock Exchange LLC (May 24, 

2022) (‘‘NYSE Letter’’). 

8A ‘‘MOC Order’’ or ‘‘Market-on-Close Order’’ is 

a Market Order that is to be traded only during a 

closing auction. See NYSE Rule 7.31(c)(2)(B). A 

‘‘LOC Order’’ or ‘‘Limit-on-Close Order’’ is a Limit 

Order that is to be traded only during a closing 

auction. See NYSE Rule 7.31(c)(2)(A). A ‘‘Closing 

IO Order’’ or ‘‘Closing Imbalance Offset Order’’ is 

a Limit Order to buy (sell) an in an Auction-Eligible 

Security that it to be traded only in a Closing 

Auction. See NYSE Rule 7.31(c)(2)(D). 

9See NYSE Rule 7.35(a)(8). 

10 ‘‘Legitimate Error’’ means an error in any term 

of an order, such as price, number of shares, side 

of the transaction (buy or sell), or identification of 

the security. See NYSE Rule 7.35(a)(13). 

11NYSE Rule 7.35B(j)(2)(B) currently specifies 

the circumstances under which the Exchange may 

temporarily suspend the prohibition on canceling 

an MOC or LOC Order in connection with the 

Closing Auction. 

12See Notice, supra note 3, 86 FR at 74205. 

13 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

that 25% of the 2 hours per response 

(0.5 hours) is prepared by the company 

for a total annual reporting burden of 

400 hours (0.5 hours per response × 800 

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. 2022–12947 Filed 6–15–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 95086; File No. SR–NYSE– 

2021–74] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Granting Approval of a Proposed Rule 

Change To Amend the Provisions of 

NYSE Rule 7.35B 

June 10, 2022. 

I. Introduction 

On December 14, 2021, New York 

Stock Exchange LLC (‘‘NYSE’’ 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 NYSE Rule 7.35B relating to the 

cancellation of MOC, LOC, and Closing 

IO Orders before the Closing Auction. 

The proposed rule change was 

published for comment in the Federal 

Register on December 29, 2021.3 On 

February 8, 2022, pursuant to Section 

19(b)(2) of the Act,4 the Commission 

extended the time period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to approve or disapprove the 

proposed change.5

On March 22, 2022, the Commission 

instituted proceedings under Section 

19(b)(2)(B) of the Act to determine 

whether to approve or disapprove the 

proposed rule change.6 The Commission 

has received one comment on the 

proposed rule change.7 This Order 

approves the proposal. 

II. Description of the Proposal 

The Exchange proposes to modify 

NYSE Rule 7.35B(f)(2), which sets forth 

rules pertaining to the cancellation of 

MOC, LOC, and Closing IO Orders 

before the Closing Auction Imbalance 

Freeze,8 and to make conforming 

changes to NYSE Rule 7.35B(j)(2)(B). 

NYSE Rule 7.35B(f)(2)(A) currently 

provides that, between the Closing 

Auction Imbalance Freeze Time, which 

is 10 minutes before the scheduled end 

of Core Trading Hours,9 and two 

minutes before the scheduled end of the 

Core Trading Hours, MOC, LOC, and 

Closing IO Orders may be canceled or 

reduced in size only to correct a 

Legitimate Error.10 NYSE Rule 

7.35B(f)(2)(B) currently specifies that, 

except as provided for in NYSE Rule 

7.35B(j)(2)(B),11 a request to cancel, 

cancel and replace, or reduce in size a 

MOC, LOC, or Closing IO Order entered 

two minutes or less before the 

scheduled end of the Core Trading 

Hours will be rejected. 

The Exchange proposes to modify 

NYSE Rule 7.35B(f)(2) to provide that 

any requests to cancel, cancel and 

replace, or reduce in size a MOC, LOC, 

or Closing IO Order that is entered 

between the beginning of the Auction 

Imbalance Freeze and the scheduled 

end of Core Trading Hours would be 

rejected. Thus, as proposed, requests to 

cancel, replace, or reduce in size a 

MOC, LOC, or Closing IO Order would 

have to be received before the beginning 

of the Auction Imbalance Freeze (i.e., 10 

minutes prior to the scheduled end of 

Core Trading Hours), even in the case of 

a Legitimate Error. The Exchange 

represents that, since August 2021, the 

Exchange has not received any requests 

to cancel, cancel and replace, or reduce 

in size a MOC, LOC, or Closing IO Order 

between the beginning of the Auction 

Imbalance Freeze and two minutes 

before the scheduled end of Core 

Trading Hours.12

Additionally, NYSE proposes to make 

the following conforming changes to 

make NYSE Rule 7.35B(j)(2)(B) 

consistent with the proposed changes 

described above: (1) replace the 

reference to ‘‘two minutes before the 

scheduled end of Core Trading Hours’’ 

with ‘‘the beginning of the Auction 

Imbalance Freeze,’’ and (2) replace the 

reference to ‘‘paragraph (f)(2)(B)’’ with 

‘‘paragraph (f)(2).’’ Thus, NYSE Rule 

7.35B(j)(2)(B), as amended, would 

provide that the Exchange may 

temporarily suspend the prohibition on 

cancelling an MOC or LOC Order after 

the beginning of the Auction Imbalance 

Freeze (as such prohibition would be set 

forth in NYSE Rule 7.35B(f)(2), as 

amended). 

III. Discussion and Commission 

Findings 

After careful review of the proposal 

and the comment letter, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.13 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 


khammond on DSKJM1Z7X2PROD with NOTICES