36898 Federal Register / Vol. 87, No. 118 / Tuesday, June 21, 2022 / Notices 

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)(6). 

Dated: June 16, 2022. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2022–13308 Filed 6–16–22; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95102; File No. SR–CBOE– 

2022–027] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Amend Rule 5.4 

June 14, 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 3, 

2022, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II, below, which Items have 

been prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to amend 

Rule 5.4. The text of the proposed rule 

change is provided below. 

(additions are underlined; deletions are 

[bracketed]) 

* * * * * 

BILLING CODE 8011–01–P 


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Federal Register / Vol. 87, No. 118 / Tuesday, June 21, 2022 / Notices 36899 

BILLING CODE 8011–01–C 

* * * * * 


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36900 Federal Register / Vol. 87, No. 118 / Tuesday, June 21, 2022 / Notices 

5As proposed, if the Exchange were to stop 

listing VIX series on a group basis, then the 

proposed increments of $0.01 for series trading 

below $3.00 and $0.05 for series trade at or above 

$3.00 would apply to all VIX options series. 

6The Exchange notes that other options that trade 

on the Exchange are currently permitted to trade in 

penny increments because competitive products are 

able to trade in penny increments, including VIXW 

options. See Rule 5.4 (the minimum for XSP 

options is $0.01 because that is the minimum 

increment for SPY options, and the minimum 

increment for DJX options is $0.01 for series below 

$3 and $0.05 for series $3 and above because that 

is the minimum increment for DIA options). 

7See Rule 5.4(d). 

8See Rule 5.4(b). 

9See Rule 5.37(a)(4). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 Id. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegalRegulatory

Home.aspx), 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 

Rule 5.4(a) to change the minimum 

increment for all series of options on the 

Cboe Volatility Index (‘‘VIX options’’) (if 

the Exchange does not list VIX options 

on a group basis) and series of VIX 

options not listed under the 

Nonstandard Expirations Pilot Program 

(if the Exchange lists VIX options on a 

group basis) to $0.01 for series trading 

lower than $3.00 and $0.05 for series 

trading at $3.00 or higher. Currently, the 

Exchange lists VIX options on a group 

basis, so series of VIX options listed 

under the Nonstandard Expirations Pilot 

Program (‘‘VIXW options’’) currently 

trade with a minimum increment of 

$0.01 for all series trading prices. The 

proposed rule change will permit the 

other group of VIX option series (those 

not listed under the Nonstandard 

Expirations Pilot Program, which are 

comprised of VIX options series that 

expire on the third Friday of the month) 

to trade in smaller increments.5

The Exchange believes market 

demand (including by retail investors, 

who generally prefer lower trading 

increments) supports a lower trading 

increment for these series. The 

Exchange expects this more granular 

pricing to lead to narrowing of the bidask spread for these options and 

increase the possible number of price 

points available to investors for these 

series. The Exchange believes tighter 

spreads will increase order flow in VIX 

options, which additional liquidity 

ultimately benefits all investors. Finer 

increments also permit more precise 

pricing in line with the theoretical value 

of these options. Additionally, penny 

pricing is available in weekly options on 

competitor products such as the iPath 

S&P 500 VIX Short-Term Futures 

exchange-traded note (‘‘VXX’’). As a 

result, the Exchange believes penny 

pricing for VIX options is necessary for 

competitive reasons to allow the 

Exchange to price these weekly options 

at the same level of granularity as 

permitted for competitor products.6

The Exchange also notes that, while 

the Penny Interval Program relates to 

multiply listed classes only, VIX options 

would be eligible for that program, and 

thus for the same minimum trading 

increments as being proposed in this 

rule filing. Specifically, pursuant to the 

Penny Interval Program, option classes 

among the 300 most actively traded 

multiply listed option classes overlying 

securities priced below $200, or any 

index at any index level below $200, 

may be added to the Penny Interval 

Program each year.7 Currently, the class 

with the lowest cleared volume over the 

six-month period ending May 3, 2022 

has a total volume of 988,078 contracts. 

During that same six-month period, VIX 

volume was 113,617,404 contracts, 

which would put it among the top five 

classes currently eligible for the Penny 

Interval Program. Additionally, the 

value of the VIX Index as of the close 

of regular trading hours on May 3, 2022, 

was under 30 (and thus well under 200). 

Therefore, VIX options have similar 

trading properties as other option 

classes that are otherwise eligible for 

penny and nickel pricing. 

Further, the Exchange notes that a 

majority of VIX options already execute 

in penny increments. Specifically, in 

the first four months of 2022, 

approximately 62% of VIX option 

contract volume executed as part of 

complex orders, which may execute in 

penny increments.8 In addition, during 

that same time period, nearly 5% of VIX 

option contract volume executed 

through an automated improvement 

mechanism (‘‘AIM’’) auction for simple 

orders, which also permits penny 

executions.9 Therefore, the proposed 

rule change will impact the trading 

increment of approximately one-third of 

VIX options. 

With regard to the impact of this 

proposed rule change on system 

capacity, the Exchange has analyzed its 

capacity and represents that it and the 

Options Price Reporting Authority have 

the necessary systems capacity to 

handle any potential additional traffic 

associated with this proposal. The 

Exchange does not believe any potential 

increased traffic will become 

unmanageable since this proposed rule 

change with respect to minimum 

trading increments is limited to a single 

class of options. The proposed rule 

change does not impact the number of 

expirations for VIX options the 

Exchange may list pursuant to Rule 

4.13. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.10 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 11 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 12 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the proposed rule 

change will permit more granular 

pricing in VIX options, which may lead 

to narrowing of the bid-ask spread for 

these options and increase the possible 

number of price points available to 

investors for these series, which 

ultimately increases liquidity to the 


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13The Exchange notes that other options that 

trade on the Exchange are currently permitted to 

trade in penny increments because competitive 

products are able to trade in penny increments. See 

5.4 (the minimum for XSP options is $0.01 because 

that is the minimum increment for SPY options, 

and the minimum increment for DJX options is 

$0.01 for series below $3 and $0.05 for series $3 and 

above because that is the minimum increment for 

DIA options). 

14See Rule 5.4(a) (the minimum for XSP options 

is $0.01 because that is the minimum increment for 

SPY options, and the minimum increment for DJX 

options is $0.01 for series below $3 and $0.05 for 

series $3 and above because that is the minimum 

increment for DIA options). 

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

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6). 

18 17 CFR 240.19b–4(f)(6)(iii). 

19For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

benefit of all investors. Additionally, as 

discussed above, at least one 

competitive product participates in the 

Penny Interval Program and thus may 

currently trade in penny and nickel 

increments. Therefore, the proposed 

will and promote just and equitable 

principles of trade and remove 

impediments to and perfect the 

mechanism of a free and open market by 

allowing VIX options to trade at the 

same level of granularity as permitted 

for competitor products.13 The 

Exchange notes that VIX options have a 

volume and an underlying index price 

consistent with option classes eligible 

for the Penny Interval Program (and 

thus are able to trade in penny and 

nickel increments). Additionally, as 

noted above, VIXW options and the 

majority of VIX options already execute 

in penny increments. 

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 rule change will not impose 

any burden on intramarket competition 

that is not necessary or appropriate, 

because all Trading Permit Holders will 

be able to trade VIX options in the 

proposed minimum trading increments. 

Additionally, all VIXW options may 

currently trade in penny increments, 

and approximately two-thirds of VIX 

options volume execute in penny 

increments as part of simple AIM or 

complex trading. The proposed rule 

change will not impose any burden on 

intermarket competition that is not 

necessary or appropriate, because it will 

permit VIX options to have pricing 

consistent with the pricing of a 

competitive product that is part of the 

Penny Interval Program and may 

currently trade in increments of $0.01 or 

$0.05. The Exchange reiterates that VIX 

options have a volume and an 

underlying index price consistent with 

option classes eligible for the Penny 

Interval Program (and thus are able to 

trade in penny and nickel increments). 

Additionally, the proposed rule 

change to permit VIX options to be 

listed in penny and nickel increments 

may relieve any burden on, or otherwise 

promote, competition, as it will allow 

market participants to trade these 

options at the same level of granularity 

as permitted for competitor products. 

The Exchange notes that other options 

that trade on the Exchange are currently 

permitted to trade in penny increments 

because competitive products are able to 

trade in penny increments.14 The 

Exchange also expects the more granular 

pricing to lead to narrowing of the bidask spread for these options, which the 

Exchange believes will increase order 

flow and price competition in VIX 

options. 

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 

Because the foregoing proposed rule 

change does not: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 15 and Rule 19b– 

4(f)(6) 16 thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 17 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),18 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the filing may become operative 

immediately upon filing. As discussed 

above, the proposal will permit pricing 

of VIX options in an increment at the 

same level of granularity as currently is 

permitted for at least one competitor 

product and other products with similar 

volumes and underlying prices that are 

eligible for the Penny Interval Program. 

The Commission finds that waiving the 

operative delay is consistent with the 

protection of investors and the public 

interest because it will allow the 

Exchange to make this pricing option 

available to investors without delay. 

Therefore, the Commission waives the 

30-day operative delay and designates 

the proposed rule change as operative 

upon filing.19

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– 

CBOE–2022–027 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–CBOE–2022–027. 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 


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36902 Federal Register / Vol. 87, No. 118 / Tuesday, June 21, 2022 / Notices 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2022–027 and should be submitted on 

or before July 12, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13150 Filed 6–17–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

34615; File No. 813–00405] 

Viking Global Equities II LP and Viking 

Global Investors LP 

June 14, 2022. 

AGENCY: Securities and Exchange 

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

ACTION: Notice. 

Notice of application for an order 

(‘‘Order’’) under sections 6(b) and 6(e) of 

the Investment Company Act of 1940 

(the ‘‘Act’’) granting an exemption from 

all provisions of the Act, except sections 

9, 17, 30, and 36 through 53, and the 

rules and regulations under the Act (the 

‘‘Rules and Regulations’’). With respect 

to sections 17(a), (d), (e), (f), (g), and (j) 

of the Act, sections 30(a), (b), (e), and (h) 

of the Act and the Rules and 

Regulations and rule 38a–1 under the 

Act, applicants request a limited 

exemption as set forth in the 

application. 

SUMMARY OF APPLICATION: Applicants 

request an order to exempt certain 

limited partnerships, limited liability 

companies, business trusts or other 

entities (‘‘Funds’’) formed for the benefit 

of eligible employees of Viking Global 

Investors LP and its affiliates from 

certain provisions of the Act. Each 

Fund, and each series thereof with 

segregated assets and liabilities, will be 

an ‘‘employees’ securities company’’ 

within the meaning of section 2(a)(13) of 

the Act. 

APPLICANTS: Viking Global Equities II LP 

and Viking Global Investors LP. 

FILING DATES: The application was filed 

on January 28, 2022 and amended on 

June 3, 2022. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the requested relief will 

be issued unless the Commission orders 

a hearing. Interested persons may 

request a hearing on any application by 

emailing the SEC’s Secretary at 

Secretarys-Office@sec.gov and serving 

the Applicants with a copy of the 

request by email, if an email address is 

listed for the relevant Applicant below, 

or personally or by mail, if a physical 

address is listed for the relevant 

Applicant below. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on July 11, 2022, and 

should be accompanied by proof of 

service on applicants, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Pursuant to rule 0–5 under the 

Act, hearing requests should state the 

nature of the writer’s interest, any facts 

bearing upon the desirability of a 

hearing on the matter, the reason for the 

request, and the issues contested. 

Persons who wish to be notified of a 

hearing may request notification by 

emailing the Commission’s Secretary at 

Secretarys-Office@sec.gov. 

ADDRESSES: The Commission: 

Secretarys-Office@sec.gov. Applicants: 

Andrew M. Genser, legalnotices@

vikingglobal.com, and John J. Mahon, 

John.Mahon@srz.com. 

FOR FURTHER INFORMATION CONTACT: 

Jessica D. Leonardo, Senior Counsel, or 

Marc Mehrespand, Branch Chief, at 

(202) 551–6825 (Division of Investment 

Management, Chief Counsel’s Office). 

SUPPLEMENTARY INFORMATION: For 

Applicants’ representations, legal 

analysis, and conditions, please refer to 

Applicants’ first amended and restated 

application, dated June 3, 2022, which 

may be obtained via the Commission’s 

website by searching for the file number 

at the top of this document, or for an 

Applicant using the Company name 

search field, on the SEC’s EDGAR 

system. The SEC’s EDGAR system may 

be searched at, at http://www.sec.gov/ 

edgar/searchedgar/legacy/ 

companysearch.html. You may also call 

the SEC’s Public Reference Room at 

(202) 551–8090. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13153 Filed 6–17–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95100; File No. SR–Phlx– 

2022–22] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing of 

Proposed Rule Change To Permit the 

Listing and Trading of P.M.-Settled 

Nasdaq–100 Index Options That Expire 

on Tuesday or Thursday Under Its 

Nonstandard Expirations Pilot 

Program 

June 14, 2022. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 2, 

2022, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 

The Exchange proposes to permit 

P.M.-settled Nasdaq–100 Index®

(‘‘NDX’’) options that expire on Tuesday 

or Thursday under its Nonstandard 

Expirations Pilot Program. 

The Exchange also proposes to make 

technical amendments within Options 

5, Section 2, Order Protection; Options 

8, Section 2, Definitions; and Options 8, 

Section 30, Crossing, Facilitation and 

Solicited Orders. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, 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 

Exchange included statements 


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