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 


jspears on DSK121TN23PROD with NOTICES1
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3 See Options 4A, Section 12(b)(5). 

4 See Securities Exchange Act Release No. 94682 

(April 12, 2022), 87 FR 22993 (April 18, 2022) (SR– 

CBOE–2022–005) (Notice of Filing of Amendment 

No. 1 and Order Granting Accelerated Approval of 

a Proposed Rule Change, as Modified by 

Amendment No. 1, To Expand the Nonstandard 

Expirations Pilot Program To Include P.M.-Settled 

S&P 500 Index Options That Expire on Tuesday or 

Thursday). 

5 In the event that the third Friday of a given 

month is a holiday and the Exchange is not open 

for trading, the Exchange would not list both an 

A.M.-settled NDX option as well as P.M.-settled 

NDXP. 

6 Given that each trading day of the week, as 

proposed, could be the last trading day of the 

month and the day in which a Weekly Expiration 

expires, the Exchange updates this rule text to 

streamline the language. 

7 The Exchange updates the rule text for 

additional clarity. 

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 

Options 4A, Section 12(b)(5), which 

governs its Nonstandard Expirations 

Pilot Program (‘‘Pilot Program’’), to 

permit P.M.-settled Nasdaq–100 Index 

(‘‘NDXP’’) options that expire on 

Tuesday or Thursday. Under the 

existing Pilot Program, the Exchange is 

permitted to list P.M.-settled options on 

broad-based indexes that expire on: (1) 

any Monday, Wednesday, or Friday 

(‘‘Weekly Expirations’’) and (2) the last 

trading day of the month (‘‘End of 

Month Expirations’’ or ‘‘EOMs’’).3

Today, Cboe Exchange, Inc. (‘‘Cboe’’) is 

permitted to list P.M.-settled S&P 500 

Index options that expire on Tuesday or 

Thursday under its Nonstandard 

Expirations Pilot Program.4

Specifically, the proposed rule change 

amends Options 4A, Section 12(b)(5)(A) 

to add NDXP options (P.M.-settled) that 

expire on Tuesday or Thursday as 

permissible Weekly Expirations under 

the Pilot Program (currently set to 

expire on November 4, 2022). The 

Exchange notes that permitting NDXP 

options with Tuesday and Thursday 

expirations, as proposed, is in addition 

to the NDXP options with Monday, 

Wednesday and Friday expirations that 

the Exchange may (and does) already 

list, as they are permissible Weekly 

Expirations for options on a broad-based 

index (e.g., NDX) pursuant to Options 

4A, Section 12(b)(5)(A). The Pilot 

Program for Weekly Expirations will 

apply to NDXP options with Tuesday 

and Thursday expirations in the same 

manner as it currently applies to P.M.- 

settled broad-based index options with 

Monday, Wednesday and Friday 

expirations. That is, as proposed, 

Options 4A, Section 12(b)(5)(A) 

provides that the Exchange may open 

for trading Weekly Expirations on any 

broad-based index eligible for standard 

options trading to expire on any 

Monday, Wednesday, or Friday (other 

than the third Friday-of-the-month or 

days that coincide with an EOM 

expiration). In addition, the Exchange 

may also open for trading Weekly 

Expirations on NDX options to expire 

on any Tuesday or Thursday (other than 

days that coincide with the third Fridayof-the-month or an EOM expiration).5

Monday, Wednesday and Friday 

weekly expirations are subject to all 

provisions of Options 4A, Section 

12(b)(5)(A) as would be the proposed 

Tuesday and Thursday expirations. 

Additionally, the Monday, Wednesday 

and Friday weekly expirations are 

treated the same as options on the same 

underlying index that expire on the 

third Friday of the expiration month as 

would be the proposed Tuesday and 

Thursday expirations; provided, 

however, that Weekly Expirations 

(including the new Tuesday and 

Thursday expirations) shall be P.M.- 

settled and new series in Weekly 

Expirations may be added up to and 

including on the expiration date for an 

expiring Weekly Expiration. The 

maximum number of expirations that 

may be listed for each Weekly 

Expiration (i.e., a Monday expiration, 

Tuesday expiration, Wednesday 

expiration, Thursday expiration, or 

Friday expiration, as applicable) in a 

given class is the same as the maximum 

number of expirations permitted in 

Options 4A, Section 12(b)(5)(A) for 

standard options on the same broadbased index (which is 12 for NDXP 

options). 

Weekly Expirations need not be for 

consecutive Monday, Tuesday, 

Wednesday, Thursday, or Friday 

expirations as applicable; however, the 

expiration date of a non-consecutive 

expiration may not be beyond what 

would be considered the last expiration 

date if the maximum number of 

expirations were listed consecutively. 

Weekly Expirations that are first listed 

in a given class may expire up to four 

weeks from the actual listing date. If the 

Exchange lists EOMs and Weekly 

Expirations as applicable in a given 

class, the Exchange will list an EOM 

instead of a Weekly Expiration that 

expires on the same day in the given 

class.6 Other expirations in the same 

class are not counted as part of the 

maximum number of Weekly 

Expirations for an applicable 7 broadbased index class. 

If the Exchange is not open for 

business on a respective Monday, the 

normally Monday expiring Weekly 

Expirations will expire on the following 

business day. If the Exchange is not 

open for business on a respective 

Tuesday, Wednesday, Thursday, or 

Friday, the normally Tuesday, 

Wednesday, Thursday, or Friday 

expiring Weekly Expirations will expire 

on the previous business day. 

The proposed rule change also adds 

that, if two different Weekly Expirations 

on NDX options would expire on the 

same day because the Exchange is not 

open for business on a certain weekday, 

the Exchange will list only one of such 

Weekly Expirations. The Exchange 

believes it is appropriate to clarify in the 

rule text that the Exchange will list just 

one Weekly Expiration in such a case, 

as the two Weekly Expirations would 

essentially be the same options contract. 

For example, if the Exchange listed 

NDXP options with proposed Thursday 

expirations and Friday expirations and 

the Exchange was closed for business on 

a Friday then, pursuant to current 

Options 4A, Section 12(b)(5)(A), the 

normally expiring Friday expiration 

would expire on the previous business 

day—essentially making it an NDXP 

option with a Thursday expiration. 

Thus, expiring NDXP options in this 

case will always have the same weekday 

expiration (per the example, it is an 

NDXP option with a Thursday 

expiration, whether it was listed as an 

NDXP with a Thursday expiration or a 

Friday expiration). As such, for the sake 

of clarity in the rules and to mitigate 

any confusion regarding the listing of 

NDXP options when the Exchange is 

closed for business, the proposed rule 

change provides that the Exchange will 

list just one Weekly Expiration if two 

Weekly Expirations would expire on the 

same day due to the Exchange being 

closed for business. Transactions in 

Weekly Expirations may be effected on 

the Exchange between the hours of 9:30 

a.m. (Eastern Time) and 4:15 p.m. 

(Eastern Time), except that on the last 

trading day, transactions in expiring 

Weekly Expirations may be effected on 

the Exchange between the hours of 9:30 


jspears on DSK121TN23PROD with NOTICES1
36904 Federal Register / Vol. 87, No. 118 / Tuesday, June 21, 2022 / Notices 

8 See Securities Exchange Act Release No. 82341 

(December 15, 2017), 82 FR 60651 (December 21, 

2017) (approving SR–Phlx–2017–79) (Order 

Approving a Proposed Rule Change, as Modified by 

Amendment No. 1 and Granting Accelerated 

Approval of Amendment No. 2, of a Proposed Rule 

Change To Establish a Nonstandard Expirations 

Pilot Program). 

9 Specifically, for all Weekly Expirations and 

EOM series, the annual report will contain the 

following volume and open interest data for each 

broad-based index overlying Weekly Expiration and 

EOM options: (1) Monthly volume aggregated for all 

Weekly Expiration and EOM series, (2) Volume in 

Weekly Expiration and EOM series aggregated by 

expiration date, (3) Month-end open interest 

aggregated for all Weekly Expiration and EOM 

series, (4) Month-end open interest for EOM series 

aggregated by expiration date and open interest for 

Weekly Expiration series aggregated by expiration 

date, (5) Ratio of monthly aggregate volume in 

Weekly Expiration and EOM series to total monthly 

class volume, and (6) Ratio of month-end open 

interest in EOM series to total month-end class 

open interest and ratio of open interest in each 

Weekly Expiration series to total class open interest. 

In addition, the annual report will contain the 

information noted above for standard Expiration 

Friday, AM-settled series, if applicable, for the 

period covered in the pilot report as well as for the 

six-month period prior to the initiation of the pilot. 

See Pilot Program Approval Order at 60652 and 

60653. 

10 The Exchange additionally notes that it already 

allows NDXP options to expire on Tuesdays for 

normally Monday or Wednesday expiring NDXP 

options when the Exchange is not open for business 

on a respective Monday or Wednesday (as 

applicable), and already allows NDXP options to 

expire on Thursdays for normally Friday expiring 

NDXP options when the Exchange is not open for 

business on a respective Friday. 

11 See Securities and Exchange Commission, 

Division of Economic Risk and Analysis, 

Memorandum, Cornerstone Analysis of PM CashSettled Index Option Pilots (February 2, 2021) 

(‘‘DERA Staff PM Pilot Memo’’), available at: 

https://www.sec.gov/dera/staff-papers/studies-andreports/analysis-of-pm-cash-settled-index-optionpilots. 

12 See DERA Staff PM Pilot Memo at 3. For 

example, the largest settlement event that occurred 

during the time period of the study (a settlement of 

$100.4 billion of notional on December 29, 2017) 

had an estimated impact on the futures price of 

only approximately 0.02% (a predicted impact of 

$0.54 relative to a closing futures price of $2,677). 

a.m. (Eastern time) and 4:00 p.m. 

(Eastern time). 

The Exchange believes that that the 

introduction of NDXP options with 

Tuesday and Thursday expirations will 

expand hedging tools available to 

market participants while also 

providing greater trading opportunities. 

By offering NDXP options with Tuesday 

and Thursday expirations along with 

the current Monday, Wednesday and 

Friday expirations, the proposed rule 

change will allow market participants to 

purchase NDXP options in a manner 

more aligned with specific timing needs 

and more effectively tailor their 

investment and hedging strategies and 

manage their portfolios. 

In particular, the proposed rule 

change will allow market participants to 

roll their positions on more trading 

days, thus with more precision, spread 

risk across more trading days and 

incorporate daily changes in the 

markets, which may reduce the 

premium cost of buying protection. The 

Exchange proposes to abide by the same 

reporting requirements for the trading of 

NDXP options that expire on any 

Tuesday or Thursday that it does for the 

trading of P.M.-settled options on broadbased indexes that expire on any 

Monday, Wednesday, or Friday 

pursuant to the Pilot Program. 

Pilot Report 

The Exchange intends to submit a rule 

change proposing permanency of the 

Nonstandard Pilot to the Commission 

and would include data regarding NDXP 

options that expire on Tuesdays or 

Thursdays as it does for current Weekly 

Expirations on any broad-based index 

option either by providing additional 

data in such proposal or in an annual 

report regarding NDXP options that 

expire on each trading day of the week, 

as proposed. The Exchange would 

continue to provide the Commission 

with ongoing data regarding NDXP 

options that expire on Tuesdays or 

Thursdays unless and until the 

Nonstandard Pilot is made permanent or 

discontinued. 

As provided in the Pilot Program 

Approval Order,8 the annual report will 

contain an analysis of volume, open 

interest and trading patterns. In 

addition, for series that exceed certain 

minimum open interest parameters, the 

annual report will provide analysis of 

index price volatility and, if needed, 

share trading activity.9 Additionally, the 

Exchange will provide the Commission 

with any additional data or analyses the 

Commission requests because it deems 

such data or analyses necessary to 

determine whether the Pilot Program, 

including NDXP options with Tuesday 

and Thursday expirations as proposed, 

is consistent with the Exchange Act. As 

it does for current Pilot Program 

products, the Exchange will make 

public on its website all data and 

analyses in connection with NDXP 

options with Tuesday and Thursday 

expirations it submits to the 

Commission under the Pilot Program. 

Going forward, the Exchange will 

include the same areas of analysis for 

NDXP options with Tuesday and 

Thursday expirations. The Exchange 

also proposes to include the following 

market quality data, over sample 

periods determined by the Exchange 

and the Commission, for NDXP options 

(NDXP and standard NDX options) as 

part of the annual reports going forward: 

(1) time-weighted relative quoted 

spreads; (2) relative effective spreads; 

and (3) time-weighted bid and offer 

sizes. 

The Exchange believes there is 

sufficient investor interest and demand 

in NDXP options with Tuesday and 

Thursday expirations to warrant 

inclusion in the Pilot Program and that 

the Pilot Program, as amended, will 

continue to provide investors with 

additional means of managing their risk 

exposures and carrying out their 

investment objectives.10 The Exchange 

notes that during the Pilot Program’s 4 

year tenure, the Exchange has not 

observed any significant adverse market 

effects or identified any regulatory 

concerns as a result of the Pilot 

Program, nor does it believe that 

additional expirations listed under the 

Pilot Program would result in any such 

impact or regulatory concerns. Based on 

a study conducted by Commission staff 

on the pilot data (including quarterly, 

weekly, EOM and third Friday 

expirations for P.M.-settled NDX 

options),11 there is no evidence of any 

significant adverse economic impact to 

the futures, index, or underlying index 

component securities markets as a result 

of the quantity of P.M.-settled NDX 

options that settle at the close or the 

amount of expiring open interest in 

P.M.-settled NDX options.12

With regard to the impact of this 

proposal on System capacity, the 

Exchange has analyzed its capacity and 

represents that it believes that the 

Exchange and OPRA have the necessary 

systems capacity to handle any potential 

additional traffic associated with trading 

of NDXP options with Tuesday and 

Thursday expirations. The Exchange 

does not believe that its members or 

member organizations will experience 

any capacity issues as a result of this 

proposal and represents that it will 

monitor the trading volume associated 

with any possible additional options 

series listed as a result of this proposal 

and the effect (if any) of these additional 

series on market fragmentation and on 

the capacity of the Exchange’s 

automated systems. While this proposal 

may increase the number of strike 

intervals listed on Phlx, the amount of 

additional strike intervals added should 

be insignificant. 

Technical Amendments 

The Exchange also proposes to amend 

Options 5, Section 2, Order Protection. 

The Exchange proposes to remove a 

citation to paragraph (c) within Options 

5, Section 2(a). This rule has not 

paragraph (c). 


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13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

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

16 15 U.S.C. 78f(b)(5). 17 See supra note 4. 

The Exchange proposes to amend 

Options 8, Section 2, Definitions, to 

update an incorrect citation to Rule 1(z). 

The proper citation is to General 1, 

Section 1(23). 

Finally, the Exchange proposes to 

amend Options 8, Section 30, Crossing, 

Facilitation and Solicited Orders to 

remove the stray word ‘‘Rule.’’ 

Implementation 

Provided this rule change is 

approved, the Exchange proposes to 

implement this rule change on or before 

August 1, 2022. The Exchange will issue 

an Options Trader Alert to notify 

members and member organizations of 

the implementation date. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,13 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,14

in particular, in that it is designed 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. 

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 15 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 facilitation 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) 16 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange does not 

believe that the addition of NDXP 

options with Tuesday and Thursday 

expirations to the Pilot Program will 

raise any prohibitive regulatory 

concerns, nor adversely impact fair and 

orderly markets on expiration days. The 

Exchange has not experienced any 

meaningful regulatory concerns, nor 

adverse impact on fair and orderly 

markets, in connection with the Pilot 

Program that has permitted the listing 

and trading of NDXP options with 

Monday, Wednesday and Friday 

expirations since 2018. Particularly, and 

as described above, the Exchange does 

not believe increases in the number 

P.M.-settled NDX options series will 

have any significant adverse economic 

impact on the futures, index, or 

underlying index component securities 

markets. The Exchange believes that the 

proposed rule change will provide 

investors with greater trading and 

hedging opportunities and flexibility, 

allowing them to transact in NDXP 

options in a manner more aligned with 

specific timing needs and more 

effectively tailor their investment and 

hedging objectives by listing NDXP 

options that expire each trading day of 

the week. 

The Exchange notes also that it will 

include analysis in connection with 

NDXP options that expire on Tuesdays 

and Thursdays, in the same manner that 

it currently does for other Pilot Program 

products, as well as the additional 

market quality data as described above, 

in either a permanency proposal or in 

an annual report it submits to the 

Commission, and will provide the 

Commission with any additional data or 

analyses that it may request if it deems 

such data or analyses necessary to 

determine whether the Pilot Program, 

including NDXP options with Tuesday 

and Thursday expirations as proposed, 

is consistent with the Exchange Act. 

The Exchange represents that it 

believes that it has the necessary 

systems capacity to support any 

additional traffic associated with trading 

of NDXP options with Tuesday and 

Thursday expirations and does not 

believe that its members and member 

organizations will experience any 

capacity issues as a result of this 

proposal. The Exchange will monitor 

the trading volume associated with any 

possible additional options series listed 

and the effect (if any) of these additional 

series on market fragmentation and on 

the capacity of the Exchange’s 

automated systems. The Exchange again 

notes that, as a result of an NDXP 

options strike mitigation initiative 

recently implemented by the Exchange, 

the number of NDXP options series 

listed on the Exchange once Tuesday 

and Thursday expirations become 

available will be less than the number 

of such series that were listed prior to 

the implementation of the strike 

mitigation initiative. 

Technical Amendments 

The proposed amendments to Options 

5, Section 2, Order Protection; Options 

8, Section 2, Definitions; and Options 8, 

Section 30, Crossing, Facilitation and 

Solicited Orders are non-substantive 

technical amendments. 

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 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intra-market competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because NDXP options with Tuesday 

and Thursday expirations will be 

available to all market participants. By 

listing NDXP options that expire 

Tuesdays and Thursdays, the proposed 

rule change will provide all investors 

that participate in the NDX options 

market greater trading and hedging 

opportunities and flexibility to meet 

their investment and hedging needs. 

Additionally, Tuesday and Thursday 

expiring NDXP options will trade in the 

same manner as Weekly Expirations 

currently trade. The Exchange does not 

believe that the proposal to list NDXP 

options with Tuesday and Thursday 

expirations will impose any burden on 

inter-market competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because NDX 

options (including NDXP options) are 

proprietary Exchange products. Also, 

Cboe similarly lists Tuesday and 

Thursday options within their nonstandard program.17 To the extent that 

the addition of NDXP options that 

expire on Tuesdays and Thursdays 

available for trading on the Exchange 

makes the Exchange a more attractive 

marketplace to market participants at 

other exchanges, such market 

participants are free to elect to become 

market participants on the Exchange. 

Technical Amendments 

The proposed amendments to Options 

5, Section 2, Order Protection; Options 

8, Section 2, Definitions; and Options 8, 

Section 30, Crossing, Facilitation and 

Solicited Orders are non-substantive 

technical amendments. 

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. 


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36906 Federal Register / Vol. 87, No. 118 / Tuesday, June 21, 2022 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) by order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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–2022–22 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–2022–22. 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–2022–22, and should 

be submitted on or before July 12, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13148 Filed 6–17–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95103; File No. SR–Phlx– 

2022–24] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend its Schedule of 

Credits, at Equity 7, Section 3 

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 1, 

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 the 

Exchange’s schedule of credits, at 

Equity 7, Section 3, as described further 

below. 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 

The Exchange proposes to amend its 

pricing schedule, at Equity 7, Section 3, 

to: (1) adopt a new $0.0025 per share 

executed credit for member 

organizations that provide nondisplayed liquidity with midpoint 

pegging of at least one million shares 

average daily value during the month; 

and (2) modify the per share executed 

credit for member organizations that 

provide non-displayed liquidity with 

midpoint pegging for all other orders 

from $0.0023 to $0.0018. 

Pursuant to Equity 7, Section 3, the 

Exchange currently provides a credit of 

$0.0023 per share executed to member 

organizations for all non-displayed 

orders with midpoint pegging that 

provide liquidity. The Exchange 

proposes to establish credit tiers for 

member organizations providing 

liquidity for non-displayed orders with 

midpoint pegging to provide an 

incentive for member organizations to 

engage in a significant amount of 

liquidity adding activity on the 

Exchange. 

The Exchange proposes establishing a 

new credit that will reward a member 

organization with a credit of $0.0025 per 

share executed to the extent that it 

provides a daily average volume of at 

least one million shares of nondisplayed liquidity with midpoint 

pegging during the month. The 

proposed new credit for non-displayed 

orders with midpoint pegging will 

provide an additional incentive to 

member organizations to add liquidity 

to the Exchange. Insofar as the proposed 

new credit will require a qualifying 

member organization to provide at least 

one million shares average daily value 

during the month in order to qualify for 

the $0.0025 per share credit, the 

Exchange believes it is reasonable for 


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