Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 42221 

35 17 CFR 240.17Ad–22(e)(21)(iv). 

36 Id. 

37 15 U.S.C. 78q–1. 

38 15 U.S.C. 78s(b)(2). 

39 In approving the Proposed Rule Change, the 

Commission considered the proposals’ impact on 

efficiency, competition, and capital formation. 15 

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

40 17 CFR 200.30–3(a)(12). 

D. Consistency With Rule 17Ad– 

22(e)(21) Under the Act 

Rule 17Ad–22(e)(21)(iv) under the Act 

requires that each covered clearing 

agency establish, implement, maintain 

and enforce written policies and 

procedures reasonably designed to have 

the covered clearing agency’s 

management regularly review the 

efficiency and effectiveness of its use of 

technology and communication 

procedures.35

As mentioned above, FICC maintains 

multiple network and communication 

methods to interact with its members, 

including certain outdated 

communication technologies necessary 

to support members that continue to use 

such older technologies. FICC believes 

that continuing to use such outdated 

technologies could render 

communications between FICC and 

some of its members vulnerable to cyber 

risks. Additionally, members’ use of 

outdated technology delays FICC’s 

implementation of its own internal 

system upgrades, which by doing so, 

risks losing connectivity between FICC 

and a number of its members. Finally, 

FICC states that it currently expends 

unnecessary resources to maintain 

outdated communications channels. In 

other words, FICC has subjected its 

network communication methods to 

review for efficiency and effectiveness. 

As a result, to enhance the efficiency 

and effectiveness of its technology and 

communication procedures, FICC 

proposes to require its members to 

upgrade and maintain network 

technology, communication technology, 

and protocol standards, in accordance 

with applicable technology standards 

that FICC would identify and publish 

via Important Notice on its website. 

Because the Proposed Rule Change is an 

outgrowth of FICC’s review of the 

efficiency and effectiveness of its 

technology and communication 

procedures, the Commission finds the 

Proposed Rule Change is consistent 

with the requirements of Rule 17Ad– 

22(e)(21)(iv) under the Act.36

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the Proposed 

Rule Change is consistent with the 

requirements of the Act and in 

particular with the requirements of 

Section 17A of the Act 37 and the rules 

and regulations promulgated 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 38 that 

Proposed Rule Change SR–FICC–2022– 

003, be, and hereby is, approved.39

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.40

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–15004 Filed 7–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–780, OMB Control No. 

3235–0733] 

Proposed Collection; Comment 

Request; Extension: Rule 194 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Commission Rule of 

Practice 194, (17 CFR 240.194), under 

the Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.). The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget (‘‘OMB’’) for 

extension and approval. 

Rule of Practice 194 provides a 

process for security-based swap dealers 

and major security-based swap 

participants (collectively, ‘‘SBS Entity’’) 

to make an application to the 

Commission for an order permitting an 

associated person who is subject to a 

statutory disqualification to effect or be 

involved in effecting security-based 

swaps on behalf of the SBS Entity. Rule 

of Practice 194 specifies the process for 

obtaining relief from the statutory 

prohibition in Exchange Act Section 

15F(b)(6), including by setting forth the 

required showing, the form of 

application and the items to be 

addressed with respect to associated 

persons that are natural persons. An 

SBS Entity is not required to file an 

application under Rule of Practice 194 

with respect to certain associated 

persons that are subject to a statutory 

disqualification, as provided for in 

paragraph (h) of Rule of Practice 194. To 

meet those requirements, however, the 

SBS Entity is required to file a notice 

with the Commission. 

It is estimated that approximately 50 

entities may fit within the definition of 

security-based swap dealer and up to 

five entities may fit within the 

definition of major security-based swap 

participant—55 SBS Entities in total. 

The Commission anticipates that, on an 

average annual basis, only a small 

fraction of the natural persons at an SBS 

Entity would be subject to a statutory 

disqualification. Accordingly, based on 

available data, the Commission 

estimates that, on an average annual 

basis, the Commission would receive up 

to five applications in accordance with 

Rule of Practice 194 with respect to 

associated persons that are natural 

persons, and five notices pursuant to 

proposed Rule of Practice 194(h) with 

respect to associated persons that are 

natural persons. The Commission 

estimates that the average time 

necessary for an SBS Entity to research 

the questions, and complete and file an 

application under Rule of Practice 194 

with respect to associated persons that 

are natural persons is approximately 30 

hours, for a total of approximately 150 

burden hours per year for all SBS 

Entities. The Commission estimates that 

approximately five SBS Entities will 

provide notices pursuant to Rule of 

Practice 194(h) for one natural person 

each on an average annual basis taking 

approximately 6 hours per notice, for a 

total of approximately 30 burden hours 

per year for all SBS Entities providing 

the notices for an estimated five natural 

persons. As such, the combined 

estimated annual hour burden for all 

SBS Entities to complete applications 

and notices pursuant to Rule of Practice 

194 is approximately 180 hours per year 

(150 + 30). 

Written comments are invited on: (a) 

whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted by 

September 12, 2022. 


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42222 Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on June 27, 2022 (SR–CBOE–2022–031). 

On June 28, 2022, the Exchange withdrew that 

filing and submitted SR–CBOE–2022–033. On June 

30, 2022 the Exchange withdrew that filing and 

submitting this filing. 

4Underlying Symbol List A currently includes 

OEX, XEO, RUT, RLG, RLV, RUI, UKXM, SPX 

(includes SPXW), SPESG and VIX. See Cboe 

Options Fees Schedule, Footnote 34. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549, or send an email to: PRA_

Mailbox@sec.gov. 

Dated: July 8, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14995 Filed 7–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95225; File No. SR–CBOE– 

2022–034] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Update Its Fees 

Schedule in Connection With the 

Exchange’s Plans To List and Trade 

FLexible EXchange Index Options With 

an Index Multiplier of One 

July 8, 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 30, 

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, 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 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to update 

its Fees Schedule in connection with 

the Exchange’s plans to list and trade 

FLexible EXchange (‘‘FLEX’’) index 

options with an index multiplier of one 

(‘‘FLEX Micro Options’’). 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/ 

CBOELegalRegulatoryHome.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 its 

Fees Schedule in connection with its 

plans to list and trade FLEX Micro 

Options.3

By way of background, the Exchange 

has adopted rules to accommodate the 

listing and trading of certain FLexible 

EXchange (‘‘FLEX’’) index options with 

an index multiplier of one (‘‘FLEX 

Micro Options’’) rather than the 

conventional 100. FLEX Micro Options 

will be available on the following 

indices effective June 27, 2022: S&P 500, 

Russell 2000 (RUT), Dow Jones 

Industrial Average (DJX), MSCI 

Emerging Markets (MXEF), and MSCI 

EAF (MXEA). The Exchange believes 

FLEX Micro Options will expand 

investors’ choices and flexibility by 

listing and trading FLEX options on 

larger-valued broad-based indexes, 

which provide investors with the ability 

to gain exposure to the market, with a 

notional value of 1/100th of the value of 

currently available FLEX Index Options. 

The Exchange believes the additional 

granularity provided by FLEX Micro 

Options with respect to the prices at 

which investors may execute and 

exercise index options on the Exchange 

will appeal to institutional investors by 

providing them with an additional 

exchange-traded tool to manage the 

positions and associated risk in their 

portfolios more precisely based on 

notional value, which currently may 

equal a fraction of a standard contract. 

The Exchange now proposes to amend 

its Fees Schedule to accommodate the 

planned listing and trading of FLEX 

Micro options. 

Standard Transaction Rates 

First, the Exchange proposes to adopt 

certain standard transaction fees in 

connection with FLEX Micro Options. 

Specifically, the proposed rule change 

adopts certain fees for FLEX Micro 

Options in the ‘‘Rate Table for All 

Products Excluding Underlying Symbol 

A’’.4 The Exchange notes that the 

proposed standard transaction fees in 

connection with FLEX Micros Options 

are lower-priced than standard FLEX 

options on the corresponding indices 

given their multiplier of one (as 

compared to 100 for standard FLEX 

options). Indeed, the proposed 

transaction fees are generally near, or 

approximately, 1/100th of the fees 

currently assessed for the corresponding 

standard FLEX options (inclusive of the 

Execution Surcharge, License 

Surcharges and FLEX Surcharges, as 

applicable). The proposed fees are as 

follows: 

RUT FLEX Micro Options 

• Adopts fee code GA, appended to 

all (i) Customer (capacity ‘‘C’’), (ii) 

Market-Maker (capacity ‘‘M’’), and (iii) 

Clearing Trading Permit Holders 

(‘‘TPHs’’) (capacity ‘‘F’’) and NonClearing TPH Affiliates (capacity 

‘‘L’’)(collectively, ‘‘Firms’’) orders in 

RUT FLEX Micro Options and assesses 

a fee of $0.009 per contract. 

• Adopts fee code GB, appended to 

all Broker-Dealers (capacity ‘‘B’’), Joint 

Back-Offices (capacity ‘‘J’’), NonTrading Permit Holder Market-Makers 

(capacity ‘‘N’’), and Professionals 

(capacity ‘‘U’’) (collectively, ‘‘NonCustomers’’) manual and AIM (Agency/ 

Primary and Contra) orders in RUT 

FLEX Micro Options and assesses a fee 

of $0.009 per contract.; and 

• Adopts fee code GC, which is 

appended to all Non-Customer 

electronic orders in RUT FLEX Micro 

Options and assesses a fee of $0.012 per 

contract. 

SPX FLEX Micro Options 

• Adopts fee code GE, appended to 

all (i) Customer and (ii) Firm orders in 

SPX FLEX Micro Options and assesses 

a fee of $0.008 per contract; 


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