Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Notices 39141 

12 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). 

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

14 15 U.S.C. 78s(b)(2). 

15 Id. 

16 17 CFR 200.30–3(a)(12). 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change, as 

modified by Amendment No. 2, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.12 In particular, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,13 which requires 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. 

As described above, the Exchange 

represents that the proposed coefficients 

were calibrated to reflect the Exchange’s 

current activity and market structure 

and are based on an analysis of recent 

market data and on backtesting that 

indicates that the proposed quote 

stability coefficients and resulting 

updated quote stability formula and 

would more accurately identify if the 

PBBO is ‘‘crumbling’’ compared to the 

current quote stability coefficients. The 

Commission finds that the proposed 

rule change is consistent with the 

protection of investors and the public 

interest because it will modify the 

coefficients of the quote instability 

formula in a way that is reasonably 

designed to improve the effectiveness of 

the quote instability calculation in 

predicting periods of quote instability 

and to thereby enhance the effectiveness 

of Discretionary Pegged Orders against 

unfavorable executions during periods 

of quote instability. 

For the reasons discussed above, the 

Commission finds that this proposed 

rule change, as modified by Amendment 

No. 2, is consistent with the 

requirements of the Act. 

IV. Solicitation of Comments on 

Amendment No. 2 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether Amendment No. 2 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 No. SR– 

NYSEAMER–2022–15 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 No. 

SR–NYSEAMER–2022–15. The file 

numbers 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 will also 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 publicly available. All 

submissions should refer to File No. 

SR–NYSEAMER–2022–15 and should 

be submitted on or before July 21, 2022. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 2 

The Commission finds good cause to 

approve the proposed rule change, as 

modified by Amendment No. 2, prior to 

the thirtieth day after the date of 

publication of notice of the amended 

proposal in the Federal Register. In 

Amendment No. 2, the Exchange 

amended the proposal to: (1) provide 

additional explanation of and rationale 

for using Discretionary Pegged Orders; 

(2) provide additional explanation of the 

purpose of the proposed rule change; 

and (3) provide additional explanation 

regarding how the proposed quote 

instability coefficients were formulated 

and tested; and (4) state when the 

Exchange expects to implement the 

proposed change to the quote instability 

coefficients. Amendment No. 2 adds 

clarity and justification to the proposal 

and does not substantively alter the 

proposed rule change as described in 

the Notice. Accordingly, the 

Commission finds good cause, pursuant 

to Section 19(b)(2) of the Act,14 to 

approve the proposed rule change, as 

modified by Amendment No. 2, on an 

accelerated basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,15 that the 

proposed rule change (SR–NYSEAMER– 

2022–15), as modified by Amendment 

No. 2, be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13961 Filed 6–29–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95150; File No. SR– 

NYSEArca–2022–31] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Designation of a 

Longer Period for Commission Action 

on a Proposed Rule Change To Amend 

Rule 6.64P–O 

June 24, 2022. 

On May 20, 2022, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 


jspears on DSK121TN23PROD with NOTICES1
39142 Federal Register / Vol. 87, No. 125 / Thursday, June 30, 2022 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 94959 

(May 23, 2022), 87 FR 32203 (May 27, 2022). 

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

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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). 

5See Securities Exchange Act Release No. 90583 

(December 7, 2020), 85 FR 80207 (December 12, 

2020) (SR–CBOE–2020–112). 

6See id. 

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 modify Rule 6.64P–O 

regarding the automated process for 

both opening and reopening trading in 

a series on the Exchange on Pillar. The 

proposed rule change was published for 

comment in the Federal Register on 

May 27, 2022.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is July 11, 2022. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds it appropriate to 

designate a longer period within which 

to take action on the proposed rule 

change so that it has sufficient time to 

consider the proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act,5 the Commission 

designates August 25, 2022 as the date 

by which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–NYSEArca–2022–31). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13959 Filed 6–29–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95151; File No. SR–CBOE– 

2022–028] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Temporary 

Remote Inspection Relief for Trading 

Permit Holder’s Office Inspections for 

Calendar Years 2020 and 2021 To 

Include Calendar Year 2022 Through 

December 31, 2022 

June 24, 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 9, 

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 extend 

the temporary remote inspection relief 

for Trading Permit Holder’s [sic] office 

inspections for calendar years 2020 and 

2021 to include calendar year 2022 

through December 31, 2022. The text of 

the proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

AboutCBOE/CBOELegalRegulat

oryHome.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 9.2, Supervision of Accounts, to 

extend the temporary remote inspection 

relief for Trading Permit Holders 

(‘‘TPHs’’) to complete their branch office 

inspections for the calendar years 2020 

and 2021 to include calendar year 2022 

through December 31, 2022. 

The COVID–19 pandemic has caused 

a host of operational disruptions to the 

securities industry and impacted 

Trading Permit Holders (‘‘TPHs’’), 

regulators, investors and other 

stakeholders. In response to the 

pandemic, the Exchange began 

providing temporary relief to TPHs from 

specified Exchange Rules and 

requirements, including Rule 9.2(d) 

(Annual Branch Inspections). In 

November 2020, the Exchange adopted 

a provision in Rule 8.16(f) (Office 

Inspections), which has expired by its 

terms, that extended the time by which 

TPHs must complete their calendar year 

2020 inspection obligations under Rule 

8.16(f) to March 31, 2021, without an 

on-site visit to the office or location.5

The Exchange also adopted Rule 

9.2(d)(5) to provide firms the option of 

satisfying their inspection obligations 

under Rule [sic] 8.16(f) and 9.2(d) 

remotely for calendar years 2020 and 

2021, subject to specified conditions,6

due to the logistical challenges of going 

on-site while public health and safety 

concerns related to COVID–19 persisted. 

In December 2021, due to the ongoing 

impact of COVID 19, the Exchange 

extended the temporary remote 

inspection relief in Rule 9.2(d)(5) for 

TPH’s office inspections for calendar 

years 2020 and 2021 to include calendar 

year 2022 through June 30, 2022. The 

Exchange notes that these temporary 

rules, currently and as proposed herein, 

are substantively identical to the 

temporary inspection extension and 

remote relief rules filed by the Financial 


jspears on DSK121TN23PROD with NOTICES1