Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 42237 

6 15 U.S.C. 78s(b)(2)(B). 

7See Securities Exchange Act Release No. 94372, 

87 FR 14053 (March 11, 2022). 

8Amendment No. 1 is available at https://

www.sec.gov/comments/sr-cboebzx-2021-078/ 

srcboebzx2021078-20121778-273840.pdf. 

9See Securities Exchange Act Release No. 94788 

(April 22, 2022), 87 FR 25328. 

10See Securities Exchange Act Release No. 95034, 

87 FR 35272 (June 9, 2022). 

11 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). 

5See 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). 

6See Securities Exchange Act Release No. 94706 

(April 12, 2022), 87 FR 22954 (April 18, 2022) (SR– 

CBOE–2022–018) (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 

5.22). 

7See 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). 

8See Exchange Rule 5.22 (‘‘Market-wide Trading 

Halts due to Extraordinary Market Volatility’’). 

9See Exchange Rule 5.22(a) (‘‘Definitions’’). 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%. 

10See Exchange Rule 5.22(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 

Continued 

19(b)(2)(B) of the Act 6 to determine 

whether to approve or disapprove the 

proposed rule change.7 On March 30, 

2022, the Exchange filed Amendment 

No. 1 to the proposed rule change, 

which superseded the proposed rule 

change as originally filed.8 The 

proposed rule change, as modified by 

Amendment No. 1, was published for 

comment in the Federal Register on 

April 28, 2022.9 On June 3, 2022, the 

Commission extended the period for 

consideration of the proposed rule 

change to August 4, 2022.10 On June 30, 

2022, the Exchange withdrew the 

proposed rule change, as modified by 

Amendment No. 1 (SR–CboeBZX–2021– 

078). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–15001 Filed 7–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95228; File No. SR–CBOE– 

2022–035] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 5.22 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 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’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposal to 

amend Rule 5.22 to remove certain 

references to the Market-Wide Circuit 

Breaker program. 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 

Exchange Rule 5.22 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. In 

addition, the Exchange proposes to 

make certain non-substantive changes to 

Rule 5.22 to delete references to 

individual stocks, which no longer trade 

on the Exchange. 

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 5.22,8

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

trading in all stocks and stock options 

whenever a market-wide trading halt 

known as a circuit breaker is initiated in 

response to extraordinary market 

conditions.’’ Rules 5.22(a) 9 and 

5.22(b) 10 describe the applicable Market 


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42238 Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 

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. 

11See 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). 

12See Exchange Rule 5.22(f) (‘‘Market-Wide 

Circuit Breaker Testing’’). 

13Supra note 8. 

14A 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’’). 

15See Rule 5.31(g) (‘‘Opening Auction Process 

Following Trading Halts’’). 

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

17 15 U.S.C. 78f(b)(5). 

18 Id. 

19See 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.’’ 

Declines and associated trading halts 

applicable to MWCB. The Exchange 

notes that the text in Rules 5.22(a) and 

5.22(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. 

While the Exchange previously operated 

a stock trading facility, this 

functionality is no longer supported by 

the Exchange and as such, the Exchange 

is proposing to remove the MWCB rules 

associated with equity securities. Rules 

5.22(f)–(h) 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 5.22(a), 

5.22(b), 5.22(d), 5.22(e), 5.22(f), 5.22(g), 

and 5.22(h), as this language applies 

specifically to equity securities, which 

do not trade on the Exchange. Given 

that the introductory language in Rule 

5.22 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 

5.22(a)–(b), (d)–(h)) 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 5.22 have been 

renumbered. In addition, the Exchange 

has proposed a non-substantive change 

to current Rule 5.22(c) in order to 

remove outdated reopening procedures 

and reference current Rule 5.31, which 

describes the reopening process for all 

halts.15 The Exchange notes that these 

changes are non-substantive and are 

being proposed to better organize the 

Exchange’s rules regarding halts due to 

MWCB and provide a more accurate 

description of the Exchange’s reopening 

process following a MWCB halt. 

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.16 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 17 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) 18 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 

5.22(a)–(b), (d)–(h) 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 5.22(a)–(b), (d)–(h) 

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 5.22 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.19 In addition, the Exchange 

believes that the proposed nonsubstantive change to remove the 

current, outdated rule text in Rule 5.22 

regarding the reopening procedures for 

halts due to a MWCB promotes just and 

equitable principles of trade, removes 

impediments to and perfects the 

mechanism of a free and open market 

and a national market system, and 

protects investors and the public 

interest because it seeks to clarify that 

any reopening due to a MWCB halt will 

be conducted under the provisions of 

Rule 5.31. By providing a reference to 

Rule 5.31, the Exchange believes 

Trading Permit Holders will be directed 

to the most relevant reopening 

procedures and any potential confusion 

regarding the reopening process for 

halts due to MWCBs will be eliminated. 

Similarly, the Exchange believes that 

removing language that references the 

trading of stocks on the Exchange 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 as it is inapplicable to 

the Exchange. Equity securities are not 

eligible for trading on the Exchange and 

the rules are applicable only to the 

securities which currently trade on the 

Exchange. Therefore, deletion of this 

language will eliminate any potential 

confusion from the Rules. 

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 


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Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Notices 42239 

20 15 U.S.C. 78s(b)(3)(A)(iii). 

21 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. 

22 17 CFR 240.19b–4(f)(6). 

23 17 CFR 240.19b–4(f)(6)(iii). 

24For 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). 

25 15 U.S.C. 78s(b)(2)(B). 

26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 94975 (May 

24, 2022), 87 FR 32482 (May 31, 2022) (SR–DTC– 

2022–004) (‘‘Notice of Filing’’). 

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 5.22 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 industrywide 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 20 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.21

A proposed rule change filed under 

Rule 19b–4(f)(6) 22 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),23 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.24

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) 25 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– 

CBOE–2022–035 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–2022–035. 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–2022–035 

and should be submitted on or before 

August 4, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14999 Filed 7–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95232; File No. SR–DTC– 

2022–004] 

Self-Regulatory Organizations; The 

Depository Trust Company; Order 

Approving a Proposed Rule Change To 

Require Applicants, Participants, and 

Pledgees To Maintain or Upgrade Their 

Network or Communications 

Technology 

July 8, 2022. 

I. Introduction 

On May 11, 2022, The Depository 

Trust Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) proposed rule change 

SR–DTC–2022–004 (‘‘Proposed Rule 

Change’’) pursuant to Section 19(b)(1) of 

the Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder.2

The Proposed Rule Change was 

published for comment in the Federal 

Register on May 31, 2022.3 The 

Commission did not receive any 

comment letters on the proposed rule 

change. For the reasons discussed 


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