Federal Register / Vol. 87, No. 119 / Wednesday, June 22, 2022 / Notices 37361 

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

2 17 CFR 240.19b–4. 

cannot be for more than three (3) years 

without renewal. The DOL notes that 

information collection requirements 

submitted to the OMB for existing ICRs 

receive a month-to-month extension 

while they undergo review. 

Agency: DOL–EBSA. 

Title of Collection: Alternative 

Reporting Methods for Apprenticeship 

and Training Plans and Top Hat Plans. 

OMB Control Number: 1210–0153. 

Affected Public: Private Sector— 

Businesses or other for-profits and notfor-profit institutions. 

Total Estimated Number of 

Respondents: 1,800. 

Total Estimated Number of 

Responses: 1,800. 

Total Estimated Annual Time Burden: 

300 hours. 

Total Estimated Annual Other Costs 

Burden: $0. 

(Authority: 44 U.S.C. 3507(a)(1)(D)) 

Dated: June 15, 2022. 

Mara Blumenthal, 

Senior PRA Analyst. 

[FR Doc. 2022–13350 Filed 6–21–22; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Agency Information Collection 

Activities; Submission for OMB 

Review; Comment Request; Multiple 

Employer Welfare Arrangement 

Administrative Law Judge 

Administrative Hearing Procedures 

ACTION: Notice of availability; request 

for comments. 

SUMMARY: The Department of Labor 

(DOL) is submitting this Employee 

Benefits Security Administration 

(EBSA)-sponsored information 

collection request (ICR) to the Office of 

Management and Budget (OMB) for 

review and approval in accordance with 

the Paperwork Reduction Act of 1995 

(PRA). Public comments on the ICR are 

invited. 

DATES: The OMB will consider all 

written comments that the agency 

receives on or before July 22, 2022. 

ADDRESSES: Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

PRAMain. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

Comments are invited on: (1) whether 

the collection of information is 

necessary for the proper performance of 

the functions of the Department, 

including whether the information will 

have practical utility; (2) if the 

information will be processed and used 

in a timely manner; (3) the accuracy of 

the agency’s estimates of the burden and 

cost of the collection of information, 

including the validity of the 

methodology and assumptions used; (4) 

ways to enhance the quality, utility and 

clarity of the information collection; and 

(5) ways to minimize the burden of the 

collection of information on those who 

are to respond, including the use of 

automated collection techniques or 

other forms of information technology. 

FOR FURTHER INFORMATION CONTACT: 

Mara Blumenthal by telephone at 202– 

693–8538, or by email at DOL_PRA_

PUBLIC@dol.gov. 

SUPPLEMENTARY INFORMATION: Section 

521 of ERISA provides that the 

Secretary of Labor may issue ex parte 

cease and desist orders when it appears 

to the Secretary that the alleged conduct 

of a multiple employer welfare 

arrangement (MEWA), as defined under 

section 3(40) of ERISA, is fraudulent, or 

creates an immediate danger to the 

public safety or welfare, or is causing or 

can be reasonably expected to cause 

significant, imminent, and irreparable 

public injury. Section 521(b) provides 

that a person that is adversely affected 

by the issuance of a cease and desist 

order may request an administrative 

hearing regarding the order. The 

Department has promulgated a final 

regulation that describes the procedures 

for when a person seeks an 

administrative hearing for review of 

such an order before an administrative 

law judge (ALJ). For additional 

substantive information about this ICR, 

see the related notice published in the 

Federal Register on March 17, 2022 (87 

FR 15267). 

This information collection is subject 

to the PRA. A Federal agency generally 

cannot conduct or sponsor a collection 

of information, and the public is 

generally not required to respond to an 

information collection, unless the OMB 

approves it and displays a currently 

valid OMB Control Number. In addition, 

notwithstanding any other provisions of 

law, no person shall generally be subject 

to penalty for failing to comply with a 

collection of information that does not 

display a valid OMB Control Number. 

See 5 CFR 1320.5(a) and 1320.6. 

DOL seeks PRA authorization for this 

information collection for three (3) 

years. OMB authorization for an ICR 

cannot be for more than three (3) years 

without renewal. The DOL notes that 

information collection requirements 

submitted to the OMB for existing ICRs 

receive a month-to-month extension 

while they undergo review. 

Agency: DOL–EBSA. 

Title of Collection: Multiple Employer 

Welfare Arrangement Administrative 

Law Judge Administrative Hearing 

Procedures. 

OMB Control Number: 1210–0148. 

Affected Public: Private Sector— 

Businesses or other for-profits and notfor-profit institutions. 

Total Estimated Number of 

Respondents: 10. 

Total Estimated Number of 

Responses: 10. 

Total Estimated Annual Time Burden: 

20 hours. 

Total Estimated Annual Other Costs 

Burden: $686,900. 

(Authority: 44 U.S.C. 3507(a)(1)(D)) 

Dated: June 15, 2022. 

Mara Blumenthal, 

Senior PRA Analyst. 

[FR Doc. 2022–13349 Filed 6–21–22; 8:45 am] 

BILLING CODE 4510–29–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95108; File No. SR-Phlx– 

2022–23] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Options 7, 

Section 4, Multiply Listed Options Fees 

June 15, 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 May 31, 

2022, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) 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 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 amend 

Phlx’s Pricing Schedule at Options 7, 

Section 4, ‘‘Multiply Listed Options 

Fees (Includes options overlying 

equities, ETFs, ETNs and indexes which 

are Multiply Listed) (Excludes SPY).’’ 

While the changes proposed herein 

are effective upon filing, the Exchange 


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37362 Federal Register / Vol. 87, No. 119 / Wednesday, June 22, 2022 / Notices 

3The term ‘‘Lead Market Maker’’ applies to 

transactions for the account of a Lead Market Maker 

(as defined in Options 2, Section 12(a)). A Lead 

Market Maker is an Exchange member who is 

registered as an options Lead Market Maker 

pursuant to Options 2, Section 12(a). An options 

Lead Market Maker includes a Remote Lead Market 

Maker which is defined as an options Lead Market 

Maker in one or more classes that does not have a 

physical presence on an Exchange floor and is 

approved by the Exchange pursuant to Options 2, 

Section 11. See Options 7, Section 1(c). The term 

‘‘Floor Lead Market Maker’’ is a member who is 

registered as an options Lead Market Maker 

pursuant to Options 2, Section 12(a) and has a 

physical presence on the Exchange’s trading floor. 

See Options 8, Section 2(a)(3). 

4The term ‘‘Market Maker’’ is defined in Options 

1, Section 1(b)(28) as a member of the Exchange 

who is registered as an options Market Maker 

pursuant to Options 2, Section 12(a). A Market 

Maker includes SQTs and RSQTs as well as Floor 

Market Makers. See Options 7, Section 1(c). The 

term ‘‘Floor Market Maker’’ is a Market Maker who 

is neither an SQT or an RSQT. A Floor Market 

Maker may provide a quote in open outcry. See 

Options 8, Section 2(a)(4). 

5The term ‘‘Firm’’ applies to any transaction that 

is identified by a member or member organization 

for clearing in the Firm range at The Options 

Clearing Corporation. See Options 7, Section 1(c). 

6The term ‘‘Broker-Dealer’’ applies to any 

transaction which is not subject to any of the other 

transaction fees applicable within a particular 

category. See Options 7, Section 1(c). 

7The term ‘‘Customer’’ applies to any transaction 

that is identified by a member or member 

organization for clearing in the Customer range at 

The Options Clearing Corporation (‘‘OCC’’) which 

is not for the account of a broker or dealer or for 

the account of a ‘‘Professional’’ (as that term is 

defined in Options 1, Section 1(b)(45)). See Options 

7, Section 1(c). 

8The term ‘‘Professional’’ applies to transactions 

for the accounts of Professionals, as defined in 

Options 1, Section 1(b)(45) means any person or 

entity that (i) is not a broker or dealer in securities, 

and (ii) places more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial account(s). See Options 7, 

Section 1(c). 

9Electronic QCC Orders are described in Options 

3, Section 12. 

10Floor QCC Orders are described in Options 8, 

Section 30(e). 

11 Volume resulting from all executed electronic 

QCC Orders and Floor QCC Orders, including 

Customer-to-Customer, Customer-to-Professional, 

and Professional-to-Professional transactions and 

excluding dividend, merger, short stock interest or 

reversal or conversion strategy executions, is 

aggregated in determining the applicable volume 

tier. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(4) and (5). 

14Securities Exchange Act Release No. 51808 

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

(‘‘Regulation NMS Adopting Release’’). 

15NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 

2010). 

16See NetCoalition, at 534–535. 

17 Id. at 537. 

has designated that the amendments be 

operative on June 1, 2022. 

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 

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 

Phlx proposes to amend its Pricing 

Schedule at Options 7, Section 4, 

‘‘Multiply Listed Options Fees (Includes 

options overlying equities, ETFs, ETNs 

and indexes which are Multiply Listed) 

(Excludes SPY).’’ Specifically, Phlx 

proposes to increase the maximum 

Qualified Contingent Cross (‘‘QCC’’) 

rebate that will be paid by the Exchange 

in a given month. The Exchange 

believes that increasing the maximum 

QCC Rebate to be paid by the Exchange 

in a given month will incentivize 

market participants to transact a greater 

amount of QCC Orders on Phlx. 

Today, the Exchange assesses a $.20 

per contract QCC Transaction Fee for a 

Lead Market Maker,3 Market Maker,4

Firm 5 and Broker-Dealer.6 Customers 7

and Professionals 8 are not assessed a 

QCC Transaction Fee. QCC Transaction 

Fees apply to electronic QCC Orders 9

and Floor QCC Orders.10 Rebates are 

paid on all qualifying executed 

electronic QCC Orders and Floor QCC 

Orders based on the following six tier 

rebate schedule:11

Tier Threshold 

Rebate 

per 

contract 

Tier 1 0 to 99,999 contracts in 

a month.

$0.00 

Tier 2 100,000 to 299,999 contracts in a month.0.05 

Tier 3 300,000 to 499,999 contracts in a month.0.07 

Tier 4 500,000 to 699,999 contracts in a month.0.08 

Tier 5 700,000 to 999,999 contracts in a month.0.09 

Tier 6 Over 1,000,000 contracts in a month.0.11 

The Exchange does not pay a QCC 

Rebate where the transaction is either: 

(i) Customer-to-Customer; (ii) Customerto-Professional; (iii) Professional-toProfessional; or (iv) a dividend, merger, 

short stock interest or reversal or 

conversion strategy execution (as 

defined in Options 7, Section 4). The 

Exchange will continue to pay rebates 

on QCC Orders as described above. 

Today, the maximum QCC Rebate to 

be paid in a given month may not 

exceed $550,000. The Exchange 

proposes to increase the maximum QCC 

Rebate that will be paid in a given 

month from $550,000 per month to 

$750,000 per month. The continued 

elevated options volume is the primary 

reason for this amendment. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,12 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,13 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Commission and the courts have 

repeatedly expressed their preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, while 

adopting a series of steps to improve the 

current market model, 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.’’ 14

Likewise, in NetCoalition v. Securities 

and Exchange Commission 15

(‘‘NetCoalition’’) the D.C. Circuit upheld 

the Commission’s use of a market-based 

approach in evaluating the fairness of 

market data fees against a challenge 

claiming that Congress mandated a costbased approach.16 As the court 

emphasized, the Commission ‘‘intended 

in Regulation NMS that ‘market forces, 

rather than regulatory requirements’ 

play a role in determining the market 

data . . . to be made available to 

investors and at what cost.’’ 17

Further, ‘‘[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 


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Federal Register / Vol. 87, No. 119 / Wednesday, June 22, 2022 / Notices 37363 

18 Id. at 539 (quoting Securities Exchange Act 

Release No. 59039 (December 2, 2008), 73 FR 

74770, 74782–83 (December 9, 2008) (SR– 

NYSEArca–2006–21)). 19 15 U.S.C. 78s(b)(3)(A)(ii). 20 17 CFR 200.30–3(a)(12). 

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’. . . .’’ 18 Although the court 

and the SEC were discussing the cash 

equities markets, the Exchange believes 

that these views apply with equal force 

to the options markets. 

The Exchange believes that it is 

reasonable to increase the maximum 

QCC Rebate the Exchange would pay a 

market participant in a given month 

from $550,000 to $750,000 because it 

will incentivize market participants to 

transact a greater amount of QCC Orders 

on Phlx in order to obtain the maximum 

QCC Rebate offered by the Exchange. 

Additionally, the Exchange believes the 

elevated maximum QCC Rebate is in 

line with increased options volumes. 

The Exchange believes that it is 

equitable and not unfairly 

discriminatory to increase the maximum 

QCC Rebate the Exchange would pay a 

market participant in a given month 

from $550,000 to $750,000 because all 

qualifying market participants are 

eligible to transact QCC Orders, either 

electronically or on the Trading Floor, 

and would, therefore, be eligible to 

receive up to the maximum amount of 

QCC Rebate, provided they transacted 

the qualifying number of QCC Orders. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Inter-Market Competition 

The proposal does not impose an 

undue burden on inter-market 

competition. The Exchange believes its 

proposal remains competitive with 

other options markets and will offer 

market participants with another choice 

of where to transact options. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges. Because competitors are free 

to modify their own fees in response, 

and because market participants may 

readily adjust their order routing 

practices, the Exchange believes that the 

degree to which fee changes in this 

market may impose any burden on 

competition is extremely limited. 

Intra-Market Competition 

The proposed amendments do not 

impose an undue burden on intramarket competition. The Exchange 

believes that increasing the maximum 

QCC Rebate the Exchange would pay a 

market participant in a given month 

from $550,000 to $750,000 does not 

impose an undue burden on 

competition because all qualifying 

market participants are eligible to 

transact QCC Orders, either 

electronically or on the Trading Floor, 

and would, therefore, be eligible to 

receive up to the maximum amount of 

QCC Rebate, provided they transacted 

the qualifying number of QCC Orders. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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)(ii) of the Act.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: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

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– 

Phlx–2022–23 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–Phlx–2022–23. 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–Phlx–2022–23 and should 

be submitted on or before July 13, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13270 Filed 6–21–22; 8:45 am] 

BILLING CODE 8011–01–P 


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