42226 Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 

13See Cboe Global Markets, U.S. Options Market 

Volume Summary by Month (June 24, 2022), 

available at http://markets.cboe.com/us/options/ 

market_share/. 

14See Securities Exchange Act Release No. 51808 

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

15NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca–2006–21)). 

16 15 U.S.C. 78s(b)(3)(A). 17 17 CFR 240.19b–4(f). 

18 17 CFR 200.30–3(a)(12). 

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). 

options trades.13 Therefore, no exchange 

possesses significant pricing power in 

the execution of option order flow. 

Moreover, the Commission has 

repeatedly expressed its preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, 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 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[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 

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’. . . .’’.15 Accordingly, the 

Exchange does not believe its proposed 

changes to the incentive programs 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

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) 

of the Act 16 and paragraph (f) of Rule 

19b–4 17 thereunder. 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–2022–034 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–2022–034. 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–CBOE–2022–034 and 

should be submitted on or before 

August 4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14997 Filed 7–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95229; File No. SR–C2– 

2022–013] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 5.20 To 

Remove Certain References to the 

Market-Wide Circuit Breaker Program 

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 C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) 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 ‘‘non-controversial’’ 

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 C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposal to 

amend Rule 5.20 to remove certain 

references to the Market-Wide Circuit 

Breaker program. The text of the 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 42227 

5 See Securities Exchange Act Release No. 94441 

(March 16, 2022), 87 FR 16286 (March 22, 2022) 

(SR–NYSE–2021–40) (Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 1 To Adopt on a Permanent 

Basis the Pilot Program for Market-Wide Circuit 

Breakers in Rule 7.12). 

6 See Securities Exchange Act Release No. 94698 

(April 12, 2022), 87 FR 22981 (April 18, 2022) (SR– 

CBOE–2022–010) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change to Adopt 

on a Permanent Basis the Pilot Program for MarketWide Circuit Breakers, Currently Codified in Rule 

5.20.01). 

7 See Securities Exchange Act Release No. 94705 

(April 12, 2022), 87 FR 22977 (April 18, 2022) (SR– 

CboeBYX–2022–011) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Adopt on a Permanent Basis the Pilot Program 

for Market-Wide Circuit Breakers, Currently 

Codified in Rule 11.18); Securities Exchange Act 

Release No. 94702 (April 12, 2022), 87 FR 23003 

(April 18, 2022) (SR–CboeBZX–2022–027) (Notice 

of Filing and Immediate Effectiveness of a Proposed 

Rule Change To Adopt on a Permanent Basis the 

Pilot Program for Market-Wide Circuit Breakers, 

Currently Codified in Rule 11.18); Securities 

Exchange Act Release No. 94701 (April 12, 2022), 

87 FR 22963 (April 18, 2022) (SR–CboeEDGA– 

2022–008) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Adopt 

on a Permanent Basis the Pilot Program for MarketWide Circuit Breakers, Currently Codified in Rule 

11.16); Securities Exchange Act Release No. 94699 

(April 12, 2022), 87 FR 22967 (April 18, 2022) (SR– 

CboeEDGX–2022–023) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Adopt on a Permanent Basis the Pilot Program 

for Market-Wide Circuit Breakers, Currently 

Codified in Rule 11.16). 

8 See Exchange Rule 5.20.01. 

9 See Exchange Rule 5.20.01(a). A Market Decline 

means a decline in price of the S&P 500 Index 

between 9:30 a.m. and 4:00 p.m. on a trading day 

as compared to the closing price of the S&P 500 

Index for the immediately preceding trading day. A 

Level 1 Market Decline means a Market Decline of 

7%, a Level 2 Market Decline means a Market 

Decline of 13%, and a Level 3 Market Decline 

means a Market Decline of 20%. 

10 See Exchange Rule 5.20.01(b) (‘‘Halts in 

Trading’’). The Exchange shall halt trading in all 

stock or stock options for 15 minutes if a Level 1 

or Level 2 Market Decline occurs after 9:30 a.m. and 

before 3:26 p.m. (or 12:26 p.m. in the case of an 

early scheduled close). The Exchange will not halt 

trading if a Level 1 or Level 2 Market Decline occurs 

at 3:26 p.m. (12:26 p.m. on days with an early 

scheduled close) or later. The Exchange shall halt 

trading in all stocks and stock options until the next 

trading day if a Level 3 Market Decline occurs at 

any time during the trading day. 

11 See Cboe BYX Exchange Rules 11.18(a)(1)–(4) 

and 11.18(b); Cboe BZX Exchange Rules 

11.18(a)(1)–(4) and 11.18(b); Cboe EDGA Exchange 

Rules 11.16(a)(1)–(4) and 11.16(b); Cboe EDGX 

Exchange Rules 11.16(a)(1)–(4) and 11.16(b). 

12 See Exchange Rule 5.20.01(e) (‘‘Market-Wide 

Circuit Breaker Testing’’). 

13 Supra note 8. 

14 A Trading Permit Holder means ‘‘any 

individual, corporation, partnership, limited 

liability company or other entity authorized by the 

Rules that holds a Trading Permit.’’ See Eleventh 

Amended and Restated Bylaws of Cboe Exchange, 

Inc. Section 1.1 (‘‘Definitions’’). A Trading Permit 

‘‘means a license issued by the Exchange that grants 

the holder or the holder’s nominee the right to 

access one or more facilities of the Exchange for the 

purpose of effecting transactions in securities 

traded on the Exchange without the services of 

another person acting as broker, and otherwise to 

access the facilities of the Exchange for purposes of 

trading or reporting transactions or transmitting 

orders or quotations in securities traded on the 

Exchange, or to engage in other activities that, 

under the Rules, may only be engaged in by Trading 

Permit Holders, provided that the holder or the 

holder’s nominee, as applicable, satisfies any 

applicable qualification requirements to exercise 

those rights.’’ See Exchange Rule 1.1 

(‘‘Definitions’’). 

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

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/ctwo/), 

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 

Exchange Rule 5.20 to remove certain 

rule text that references the MarketWide Circuit Breaker (‘‘MWCB’’) 

program for equity securities. The 

proposed changes are intended to clarify 

the Exchange’s rules regarding trading 

halts in options due to a MWCB. 

MWCB Program 

On March 16, 2022, the Commission 

approved a proposal by the New York 

Stock Exchange LLC (‘‘NYSE’’) to make 

permanent the MWCB program.5 The 

Commission approved a proposal filed 

by the Exchange on April 12, 2022, to 

adopt on a permanent basis the MWCB 

pilot program.6 The Exchange’s 

affiliated equities exchanges similarly 

received approval to make permanent 

the MWCB pilot program on April 12, 

2022.7

The Exchange’s current rule regarding 

MWCB halts can be found in Rule 

5.20.01,8 which states, ‘‘[t]he Exchange 

will halt trading in all stock options 

whenever a market-wide trading halt 

commonly known as a circuit breaker is 

initiated in response to extraordinary 

market conditions.’’ Rules 5.20.01(a) 9

and 5.20.01(b) 10 describe the applicable 

Market Declines and associated trading 

halts applicable to MWCB. The 

Exchange notes that the text in Rules 

5.20.01(a) and 5.20.01(b) is identical to 

the MWCB language found in the 

Exchange’s affiliated equity exchanges’ 

rules.11 Those rules are implemented 

exclusively by equities exchanges and 

the Exchange does not trade equity 

securities. The Exchange notes that its 

MWCB rules were based, in part, on the 

rules of the Exchange’s affiliate, Cboe 

Exchange, Inc., which previously 

operated a stock trading facility but no 

longer supports this functionality. As 

the rules for Cboe Exchange, Inc. are 

being updated to remove references to 

the MWCB rules applicable to equity 

securities, the Exchange is also 

proposing to amend its rules to remove 

references to the MWCB rules 

applicable to equity securities. Rules 

5.20.01(e)–(g) detail the MWCB testing 

requirements that were implemented as 

part of the adoption of the MWCB 

program on a permanent basis.12 The 

Exchange is now proposing to remove 

the language in current Rules 5.20.01(a), 

5.20.01(b), 5.20.01(c), 5.20.01(e), 

5.20.01(f), and 5.20.01(g), as this 

language applies specifically to equity 

securities, which do not trade on the 

Exchange. Given that the introductory 

language in Rule 5.20.01 specifically 

states that stock options will be halted 

in the event of a market-wide circuit 

breaker,13 the MWCB rules applicable to 

equity securities (currently housed in 

Rules 5.20.01(a)–(c), (e)–(g)) are not 

necessary. The Exchange believes that 

by removing this language its rules 

regarding stock option halts due to 

market-wide circuit breakers will 

provide clarity for Trading Permit 

Holders 14 and others who may rely on 

the rule. 

As a result of the proposed changes 

described above, the remaining 

provisions of Rule 5.20.01 have been 

renumbered in order to provide 

additional clarity to Trading Permit 

Holders. 

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.15 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 


jspears on DSK121TN23PROD with NOTICES1
42228 Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 

16 15 U.S.C. 78f(b)(5). 

17 Id. 

18 See NYSE Arca Options Rule 6.65–O(e), which 

states ‘‘[t]he Exchange shall halt trading in all 

options whenever the equities markets initiate a 

market-wide trading halt commonly known as a 

circuit breaker in response to extraordinary market 

conditions.’’ See also MIAX Options Exchange Rule 

504.03, which states ‘‘[t]he Exchange shall halt 

trading in all securities whenever a market-wide 

trading halt commonly known as a circuit breaker 

is initiated on the New York Stock Exchange in 

response to extraordinary market conditions.’’ 

19 15 U.S.C. 78s(b)(3)(A)(iii). 

20 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

21 17 CFR 240.19b–4(f)(6). 

22 17 CFR 240.19b–4(f)(6)(iii). 

23 For 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). 

24 15 U.S.C. 78s(b)(2)(B). 

6(b)(5) 16 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) 17 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

that removing the text in current Rules 

5.20.01(a)–(c), (e)–(g) will promote just 

and equitable principles of trade, 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest 

because the text being removed applies 

to equity securities, which do not 

currently trade on the Exchange. The 

language in Rules 5.20.01(a)–(c), (e)–(g) 

describes the applicable Market 

Declines, trading halts, reopening 

processes, and MWCB testing 

requirements that are identical to the 

corresponding MWCB rules in the 

Exchange’s affiliated equities exchanges. 

Those rules are implemented 

exclusively by equities exchanges. As 

the Exchange does not trade equity 

securities, the Exchange believes it is 

confusing to have rule text that 

describes the MWCB program within its 

rules and believes that limiting the text 

in Rule 5.20.01 to describe that stock 

options will be halted in the event of a 

MWCB will eliminate potential 

confusion amongst Trading Permit 

Holders. The Exchange notes that 

competing exchanges have similar rule 

text regarding trading halts in options 

when a MWCB commences in equity 

securities.18

For the foregoing reasons, the 

Exchange believes that the proposed 

change is consistent with the Act. 

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 change is not intended to 

address competition, but rather, makes 

clarifying changes to Rule 5.20.01 in 

order to benefit all Trading Permit 

Holders equally. The Exchange does not 

believe that removing the MWCB rule 

text that is applicable to equity 

securities would have any impact on 

competition as the revised rule text will 

look substantively similar to the rules of 

other competing options exchanges. The 

Exchange seeks to ensure consistency 

amongst exchanges with respect to this 

industry-wide program without 

implicating any competitive issues. 

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)(iii) of the Act 19 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.20

A proposed rule change filed under 

Rule 19b–4(f)(6) 21 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),22 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange asked that the 

Commission waive the 30 day operative 

delay so that the proposal may become 

operative immediately upon filing. The 

proposed rule change simply removes 

rule text that does not apply to stock 

options exchanges and would clarify the 

MWCB halt process. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change as operative upon 

filing.23

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 shall institute proceedings 

under Section 19(b)(2)(B) 24 of the Act 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– 

C2–2022–013 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–C2–2022–013. 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 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 42229 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 3See Exchange Rule 532(b)(1)(i). 

4See Exchange Rule 532(b)(1)(ii). 

5See Exchange Rule 532(b)(1)(iii). 

6See Exchange Rule 532(b)(2). 

7The pre-set value used by the Exchange is $0.10. 

See MIAX Options Exchange Regulatory Circular 

2022–16, MIAX Order Price Protection Pre-set 

Values (March 4, 2022) available at https://

www.miaxoptions.com/sites/default/files/circularfiles/MIAX_Options_RC_2022_16.pdf. 

8See Exchange Rule 532(b)(2)(i). 

9See Exchange Rule 532(b)(3). 

10See Exchange Rule 532(b)(3)(i). 

11See Exchange Rule 532(b)(4). 

12See Exchange Rule 532(b)(4)(i). 

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–C2–2022–013 and 

should be submitted on or before 

August 4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–15000 Filed 7–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95227; File No. SR–MIAX– 

2022–25] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rule 532, 

Order and Quote Price Protection 

Mechanisms and Risk Controls 

July 8, 2022. 

Pursuant to the provisions of 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 29, 2022, Miami International 

Securities Exchange, LLC (‘‘MIAX 

Options’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a 

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 is filing a proposal to 

amend Exchange Rule 532, Order and 

Quote Price Protection Mechanisms and 

Risk Controls. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal 

office, 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 

Exchange Rule 532, Order and Quote 

Price Protection Mechanisms and Risk 

Controls, to (i) extend existing price 

protections to sell limit orders and Offer 

eQuotes for certain complex order 

spread strategies; (ii) make minor nonsubstantive edits to clarify existing rule 

text; and (iii) make non-substantive 

edits to correct numbering errors. 

Background 

Currently the Exchange offers three 

defined complex order spread strategies: 

Butterfly Spread, Calendar Spread, and 

Vertical Spread. A Butterfly Spread is a 

three legged Complex Order with two 

legs to buy (sell) the same number of 

calls (puts) and one leg to sell (buy) 

twice the number of calls (puts), all legs 

have the same expiration date but 

different exercise prices, and the 

exercise price of the middle leg is 

between the exercise prices of the other 

legs. The strike price of each leg is 

equidistant from the next sequential 

strike price.3 A Calendar Spread is a 

complex strategy consisting of the 

purchase of one call (put) option and 

the sale of another call (put) option 

overlying the same security that have 

different expirations but the same strike 

price.4 A Vertical Spread is a complex 

strategy consisting of the purchase of 

one call (put) option and the sale of 

another call (put) option overlying the 

same security that have the same 

expiration but different strike prices.5

For each of the aforementioned 

strategies the Exchange offers a price 

protection. The Exchange will 

determine a Butterfly Spread Variance 

(‘‘BSV’’) which establishes the 

minimum and maximum trading price 

limits for Butterfly Spreads.6 The 

minimum possible trading price limit of 

a Butterfly Spread is zero minus a preset value.7 The maximum possible 

trading price limit of a Butterfly Spread 

is the absolute value of the difference 

between the closest strikes (the upper 

strike price minus the middle strike 

price or the middle strike price minus 

the lower strike price) plus a pre-set 

value.8

The Exchange will determine a 

Calendar Spread Variance (‘‘CSV’’) 

which establishes a minimum trading 

price limit for Calendar Spreads.9 The 

maximum possible value of a Calendar 

Spread is unlimited, thus there is no 

maximum price protection for Calendar 

Spreads. The minimum possible trading 

price limit of a Calendar Spread is zero 

minus a pre-set value.10

The Exchange will determine a 

Vertical Spread Variance (‘‘VSV’’) 

which establishes minimum and 

maximum trading price limits for 

Vertical Spreads.11 The maximum 

possible trading price limit of the VSV 

is the difference between the two 

component strike prices plus a pre-set 

value. For example, a Vertical Spread 

consisting of the purchase of one 

January 30 call and the sale of one 

January 35 call would have a maximum 

trading price limit of $5.00 plus a preset value. The minimum possible 

trading price limit of a Vertical Spread 

is always zero minus a pre-set value.12

Proposal 

The Exchange now proposes to extend 

the price protections for each of the 

aforementioned complex order spread 


jspears on DSK121TN23PROD with NOTICES1