41788 Federal Register / Vol. 87, No. 133 / Wednesday, July 13, 2022 / Notices 

1975, Public Law 94–29 (June 4, 1975), grants the 

Commission flexibility to determine what type of 

proceeding—either oral or notice and opportunity 

for written comments—is appropriate for 

consideration of a particular proposal by a selfregulatory organization. See Securities Act 

Amendments of 1975, Senate Comm. on Banking, 

Housing & Urban Affairs, S. Rep. No. 75, 94th 

Cong., 1st Sess. 30 (1975). 

106 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3All capitalized terms not defined herein have 

the same definition as in the CDS Clearing Rule 

Book, Supplement or Procedures, as applicable. 

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposal should be approved or 

disapproved by August 3, 2022. Any 

person who wishes to file a rebuttal to 

any other person’s submission must file 

that rebuttal by August 17, 2022. 

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– 

NASDAQ–2022–027 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–NASDAQ–2022–027. 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 such 

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–NASDAQ–2022–027 and 

should be submitted on or before 

August 3, 2022. Rebuttal comments 

should be submitted by August 17, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.106

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14887 Filed 7–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95207; File No. SR–LCH 

SA–2022–004] 

Self-Regulatory Organizations; LCH 

SA; Notice of Filing of Proposed Rule 

Change Relating to the Clearing of 

Markit iTraxx® Australia Indices and 

the Associated Single Name 

Constituents and Remediation of WWR 

Margin Instability 

July 7, 2022. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder 2 notice is hereby given that 

on June 30, 2022, Banque Centrale de 

Compensation, which conducts 

business under the name LCH SA (‘‘LCH 

SA’’), filed with the Securities and 

Exchange Commission (‘‘Commission’’ 

or ‘‘SEC’’) the proposed rule change 

described in Items I, II, and III below, 

which Items have been prepared 

primarily by LCH SA. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

(a) LCH SA is proposing to amend its 

CDSClear Risk methodology and its CDS 

Clearing Supplement (the ‘‘Clearing 

Supplement’’) to allow LCH SA to 

enhance and expand its clearing 

services as follows: LCH SA intends to 

(i) permit the clearing of Markit iTraxx®

Australia indices and the associated 

single name constituents, (the ‘‘iTraxx 

Change’’) and (ii) provide a remediation 

to one independent model validation 

recommendation regarding the Wrong 

Way Risk (WWR) margin instability (the 

‘‘WWR Change’’) (all together the 

‘‘Proposed Rule Change’’). 

The text of the Proposed Rule Change 

is in Exhibit 5.3

The implementation of the Proposed 

Rule Change will be contingent on LCH 

SA’s receipt of all necessary regulatory 

approvals. 

(b) Not applicable. 

(c) Not applicable. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

LCH SA 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. LCH SA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of these statements. 

A. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(a) Purpose 

The purpose of the Proposed Rule 

Change is to revise LCH SA’s rules, 

procedures and supplement to (1) 

permit the clearing of Markit iTraxx®

Australia indices and the associated 

single name constituents and (2) 

provide the remediation to the WWR 

margin instability. 

(1) Proposed Amendments To Permit 

the Clearing of Markit iTraxx® Australia 

Indices 

(a) Amendments to the Clearing 

Supplement 

The Clearing Supplement has been 

amended in order to include the 

relevant provisions to allow the clearing 

of the new Markit iTraxx® Australia 

indices. 

In Part B of the Clearing Supplement, 

Section 1.2 (Terms defined in the CDS 

Clearing Supplement) has been 

amended to include a new subparagraph (a) to the definition of an 

‘‘Index Cleared Transaction 

Confirmation’’ in order to make a 

reference to the form of confirmation 

which incorporates the iTraxx® Asia/ 

Pacific Untranched Standard Terms 

Supplement. As a consequence, the subparagraphs (a), (b), (c), and (d) have 

been re-lettered as (b), (c), (d), (e), 

respectively. 

Section 2.2 (Index Cleared 

Transaction Confirmation) of Part B of 

the Clearing Supplement has been also 

amended to make appropriate references 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 133 / Wednesday, July 13, 2022 / Notices 41789 

4 15 U.S.C. 78q–1. 

5 17 CFR 240.17Ad–22. 

6 15 U.S.C. 78q–1(b)(3)(F). 

7 15 U.S.C. 78q–1(b)(3)(F). 

to any Index Cleared Transaction that is 

a Markit iTraxx® Australia Index in 

paragraphs (a)(i), (b)(i), (c)(i) and (f)(i). 

(b) Proposed Amendments to the 

CDSClear Risk Framework 

LCH SA is proposing to amend its 

Methodology Services Reference Guide: 

CDS Margin Framework (‘‘CDSClear 

Risk Methodology’’) under Section 

2.1.1.1 (Interest Rate Curve) to proceed 

with the removal of the interest rate 

curve name used with the International 

Swaps and Derivatives Association, Inc. 

(ISDA) standard model pricer (used as a 

converter between upfront cash and 

quoted spread in basis points, as 

described on www.cdsmodel.com) that 

does not need to be clearly specified in 

such risk documentation. The objective 

now is to refer to the original website 

when the market moves to the new Risk 

Free Rates, so that the CDSClear Risk 

Methodology always automatically 

refers to the latest state in the market 

without risking becoming outdated. 

For clarity purposes only, LCH SA is 

proposing to remove ‘‘through a CDS 

index’’ under the provisions of Section 

3.2 (Self-referencing margin risk) as the 

Self-Referencing Margin would apply as 

soon as the clearing member sells 

protection on itself whatever the 

financial instrument used. 

The other proposed change specified 

under Section 3.4.5 (Portfolio 

Margining) is intended to add iTraxx®

Australia to the list of indices on which 

index basis packages can be cleared. 

As there are financial single name 

constituents in the iTraxx® Australia 

index family, positions on this index 

will be subject to the Wrong Way Risk 

margin, a margin that aims at capturing 

the potential contagion effect off the 

default of a clearing member (that is a 

financial institution) on instruments 

with open positions in the defaulter’s 

portfolio. Here, it would be the risk that 

Australian financials credit spreads may 

widen following the default of a clearing 

member, to an extent that goes beyond 

the spread move already covered by the 

spread margin. This requirement, 

coupled with the need to address a 

recommendation raised by the 

independent risk model validation on 

the instability of the Wrong Way Risk 

margin component, result in LCH SA 

also proposing to amend the provisions 

under Section 3.8 of the CDSClear Risk 

Methodology about the Wrong Way Risk 

margin to introduce the following 

updates: 

—the introduction of the shocks applied 

to Australian entities in Section 

3.8.1.1 (Spread parallel moves), 

alongside the shocks applied to 

existing products. 

—a generalisation of the calculation to 

all indices under Section 3.8.1.4 

(Index Shocks) instead of just 

referring to Senior Financial or its 

parent index Main as it was 

previously in Section 3.8.1.3. 

—a description of the way the shocks on 

indices are defined in Section 3.8.1.4 

(Index Shocks), being derived directly 

from the shocks applied on 

constituents as a spread and CS01 

weighted average. This would apply 

to iTraxx® Australia as well as other 

indices containing financial names, 

although no financial impact is 

expected since index shocks are 

currently already calibrated as the 

average shock of their constituents. 

—As required to address the 

recommendation raised by the 

Independent Model Validation, a 

specification that the contribution to 

the spread margin used to derive the 

spread_SM under Sections 3.8.1.5 

(Wrong-Way/Right-Way P&L) and 

3.8.1.6 (Instrument level Expected 

Shortfall) would now consider the 

contribution of a single tenor, instead 

of the joint contribution of all tenors 

on a given product, to address the 

WWR margin instability observed 

with curve trades. 

—the introduction of iTraxx® Australia 

alongside other regions under Section 

3.8.1.8 (Trigger) when aggregating 

Wrong way and Right way across 

regions. 

—Some of the existing provisions under 

Sections 3.8.2 (Offsets inter-region) 

and 3.8.3 (Final WWR Margin) have 

been moved to the general Section 

3.8.1 explaining the overall WWR 

calculation. The shocks defined when 

extending to CDX products are now 

part of the table inside Section 3.8.1.1 

(Spread parallel moves) and the 

relevant provision has been moved at 

the end of this same section. The 

provision about Sub Financials has 

been moved to the Section 3.8.1.2 

(Sub Financials) as a subsection of 

3.8.1 (WWR: Parallel Move). 

Further, the provisions of Section 4 

on Additional Margin are proposed to 

be updated for the Liquidity and 

Concentration Risk Margin under 

paragraphs 4.1.2 (Macro Hedging Phase) 

and 4.1.4.1 (Diversification Ratio) to 

specify that iTraxx® Australia index 

would be used for hedging and would 

define an additional sub-portfolio when 

considering liquidation costs. 

Finally, LCH SA is also taking this 

opportunity to propose changes for 

consistency purposes by removing from 

its CDSClear Risk methodology 

documentation any reference to IBOR 

curves in Section 2.1.1.1, and refer 

instead to the cdsmodel.com website 

which details the pricer used by all 

market participants to convert from 

quoted spreads to upfronts in parallel to 

the cessation of IBOR and the transition 

to Risk Free Rates, and also clarify in 

Section 1, Introduction that the short 

charge can cover 1 or 2 credit events, as 

the CDX.HY component does cover 2 

defaults and was not correctly reflected 

in the introduction. 

(b) Statutory Basis 

LCH SA believes that the Proposed 

Rule Change is consistent with the 

requirements of Section 17A of the Act 4

and regulations thereunder applicable to 

it, including Commission Rule 17Ad– 

22(e).5 In particular, Section 

17A(b)(3)(F) of the Act requires, inter 

alia, that the rules of a clearing agency 

be designed to ‘‘promote the prompt and 

accurate clearance and settlement of 

. . . derivatives agreements, contracts, 

and transactions’’.6 By proposing to 

amend its CDS Clearing Supplement to 

authorize the acceptance of the new 

iTraxx® Australia transactions, on the 

terms and conditions set out in the 

Proposed Rule Change, LCH SA 

considers that this would encourage 

Clearing Members to clear additional 

indices and single name CDS through its 

CDSClear service, which, in turn, 

should promote the prompt and 

accurate clearance and settlement of 

those instruments within the meaning of 

Section 17A(b)(3)(F) of the Act.7

By improving the stability of the 

WWR margin in order for LCH SA 

CDSClear to collect the appropriate 

level of margin amount required for any 

clearing member portfolio, the proposed 

WWR Change is also consistent with the 

SEC requirement for accurate clearance 

and settlement of transactions cleared 

by LCH SA. 

Further, from the perspective of 

financial risk management and margin 

requirements, the clearing of the 

proposed new iTraxx® Australia index 

and the associated single name 

constituents would not require changes 

to LCH SA’s existing margin 

methodology, default management 

policies and procedures and operational 

process, as the proposed products do 

not include any new risk factor 

compared to the Corporates and 

Financials indices or single names 

already cleared by the LCH SA 

CDSClear service. The iTraxx® Australia 

transactions would be cleared pursuant 

to LCH SA’s existing clearing 


jspears on DSK121TN23PROD with NOTICES1
41790 Federal Register / Vol. 87, No. 133 / Wednesday, July 13, 2022 / Notices 

8 17 CFR 240.17Ad–22(e)(17). 

9 17 CFR 240.17Ad–22(e). 

10 17 CFR 240.17Ad–22(e)(4). 

11 17 CFR 240.17Ad–22(e)4. 

12 17 CFR 240.17Ad–22(e)(4)(i). 

13 17 CFR 240.17Ad–22(e)(4)(ii). 

14 17 CFR 240.17Ad–22(e)(3). 

15 17 CFR 240.17Ad–22(e)(3). 

16 17 CFR 240.17Ad–22(e)(3). 

17 17 CFR 240.17Ad–22(e)(1). 

18 17 CFR 240.17Ad–22(e)(1). 

19 17 CFR 240. 17Ad–22(e)(6). 

20 17 CFR 240. 17Ad–22(e)(6)(iii). 

21 17 CFR 240.17Ad–22. 

22 15 U.S.C. 78q–1(b)(3)(I). 

arrangements and related financial 

safeguards, protections and risk 

management procedures which are 

consistent with Exchange Act Rule 

17Ad–22(e)(17),8 requiring a covered 

clearing agency to establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

manage the covered clearing agency’s 

operational risks by, among other 

things, identifying the plausible sources 

of operational risk, both internal and 

external, and mitigating their impact 

through the use of appropriate systems, 

policies, procedures, and controls. 

Adopting rules to facilitate the 

clearing of the iTraxx® Australia 

transactions would also be consistent 

with other relevant requirements of Rule 

17Ad–22(e),9 as set forth in the 

following discussion. 

Margin Requirements. Rule 17Ad– 

22(e)(4) 10 requires LCH SA to establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to effectively 

identify, measure, monitor, and manage 

its credit exposures to participants and 

those arising from its payment, clearing, 

and settlement processes, among other 

requirements. In terms of financial 

resources, LCH SA would apply its 

existing margin methodology— 

including its Wrong Way Risk margin 

framework—to the new iTraxx®

Australia Index, which are similar to the 

European indices currently cleared by 

LCH SA. LCH SA believes that the 

proposed rules that would apply this 

risk model to the new iTraxx® Australia 

Index will provide sufficient margin 

requirements to cover its credit 

exposure to its clearing members from 

clearing such contracts, consistent with 

the requirements of Rule 17Ad– 

22(e)(4).11

Financial Resources. Rule 17Ad– 

22(e)(4)(i) 12 requires LCH SA to 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to effectively 

identify, measure, monitor, and manage 

its credit exposures to participants and 

those arising from its payment, clearing, 

and settlement processes by maintaining 

sufficient financial resources to cover its 

credit exposure to each participant fully 

with a high degree of confidence. To the 

extent not already maintained pursuant 

to paragraph (e)(4)(i), Rule 17Ad– 

22(e)(4)(ii) 13 requires LCH SA’s policies 

and procedures be reasonably designed 

to maintain additional financial 

resources at the minimum to enable it 

to cover a wide range of foreseeable 

stress scenarios that include, but are not 

limited to, the default of the two 

participant families that would 

potentially cause the largest aggregate 

credit exposure for the covered clearing 

agency in extreme but plausible market 

conditions. As explained in the above 

paragraph on Margin Requirements, 

LCH SA also believes its Default Fund, 

under its existing methodology, will, 

together with the required margin, 

provide sufficient financial resources to 

support the clearing of the new iTraxx®

Australia Index contracts, consistent 

with the requirements of Rules 

17Ad22(e)(4)(i) and (ii). 

Operational Resources. Rule 17Ad– 

22(e)(3) 14 requires LCH SA to establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to maintain a 

sound risk management framework for 

comprehensively managing legal, credit, 

liquidity, operational, general business, 

investment, custody, and other risks 

that arise in or are borne by the covered 

clearing agency. LCH SA believes that 

its existing operational and risk 

management resources will be sufficient 

for clearing of the iTraxx Australia 

transactions, consistent with the 

requirements of Rule 17Ad–22(e)(3),15

as this new index contract is 

substantially the same from an 

operational and risk management 

perspective as the existing index 

contracts. 

LCH SA will also apply its existing 

default management policies and 

procedures for the iTraxx® Australia 

transactions. As with current CDSClear 

products with similar risk profile, LCH 

SA believes that these procedures allow 

for it to take timely action to contain 

losses and liquidity pressures and to 

continue meeting its obligations in the 

event of clearing member insolvencies 

or defaults in respect of the additional 

single names, in accordance with Rule 

17Ad–22(e)(3).16

Exchange Act Rule 17Ad–22(e)(1) 17

requires that a covered clearing agency 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to provide for a 

well-founded, clear, transparent, and 

enforceable legal basis for each aspect of 

its activities in all relevant jurisdictions. 

As described above, the proposed 

ı ̈Traxx Change is also modifying the 

CDSClear framework for indices and 

single names CDS to take into account 

the new product iTraxx® Australia 

indices and the associated single name 

constituents and provide for a clear and 

transparent legal basis for LCH SA’s 

CDS Clearing rules consistent with the 

requirements of Exchange Act Rule 

17Ad–22(e)(1).18

Following the recommendation raised 

by the LCH SA CDSClear Risk model 

validation, the proposed WWR Change 

is improving the stability and accuracy 

of the WWR margin so that LCH SA can 

determine and duly collect the full 

margin amount required for the level of 

risk exposure of any clearing member 

portfolio. Therefore LCH SA believes it 

is consistent with Rule 17Ad– 

22(e)(6)(i),19 requiring a covered 

clearing agency to establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

cover its credit exposures to its 

participants by establishing a risk-based 

margin system that, at a minimum, 

considers, and produces margin levels 

commensurate with, the risks and 

particular attributes of each relevant 

product, portfolio, and market. 

Credit default swap (CDS) is an overthe-counter (OTC) market on which 

participants can be active at any time in 

the context of market stress. The LCH 

SA CDSClear risk model is considering 

5–d moves of unhedged portfolios and 

the back testing results confirmed that 

the margins were sufficient to cover the 

exposure in the interval between the last 

margin collection and the close out of 

the portfolio a defaulting cleating 

member which is consistent with the 

requirements of SEC Rule 17Ad– 

22(e)(6)(iii).20

For all these reasons, LCH SA believes 

that the Proposed Rule Change is 

consistent with the requirements of 

Section 17A of the Act and the 

regulations thereunder, including the 

standards under Rule 17Ad–22 21 as 

discussed above. 

B. Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Exchange 

Act requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act.22

LCH SA does not believe that its 

proposed clearing of Markit iTraxx®

Australia indices and the associated 

single name constituents will adversely 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 133 / Wednesday, July 13, 2022 / Notices 41791 

23 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

affect competition in the trading market 

for those contracts or CDS generally. By 

allowing LCH SA to clear Markit 

iTraxx® Australia indices and the 

associated single name constituents, 

market participants will have additional 

choices on where to clear and which 

products to use for risk management 

purposes, which, in turn, will promote 

competition and further the 

development of CDS for risk 

management. 

In addition, LCH SA will continue to 

apply its existing fair and open access 

criteria to the clearing of these 

additional products and will apply the 

same criteria to every clearing member 

or client who proposes to enter into this 

clearing activity. 

Further, as explained above, the WWR 

Change is proposed to improve the 

stability and accuracy of the WWR 

margin so that LCH SA can collect the 

full margin amount as duly and equally 

required for any CDSClear market 

participant. 

Accordingly, LCH SA does not believe 

that the Proposed Rule Change would 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Clearing Agency’s Statement on 

Comments on the Proposed Rule Change 

Received From Members, Participants or 

Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. LCH SA will 

notify the Commission of any written 

comments received by LCH SA. 

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 

such 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– 

LCH SA–2022–004 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–LCH SA–2022–004. 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 LCH SA and on LCH SA’s 

website at: https://www.lch.com/ 

resources/rulebooks/proposed-rulechanges. 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–LCH 

SA–2022–004 and should be submitted 

on or before August 3, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14879 Filed 7–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95206; File No. SR– 

NYSENAT–2022–09] 

Self-Regulatory Organizations; NYSE 

National, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify Rule 7.31 

July 7, 2022. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on June 23, 

2022, NYSE National, Inc. (‘‘NYSE 

National’’ or the ‘‘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 modify 

Rule 7.31 to (1) permit certain nonroutable order types to be designated to 

cancel if they would be displayed at a 

price other than their limit price; (2) 

allow ALO Orders to be designated as 

non-displayed; (3) permit ALO Orders 

to be entered in any size; (4) modify the 

operation of the Non-Display Remove 

Modifier and eliminate its use with 

MPL–ALO Orders; and (5) make MPL 

Orders eligible to trade at their limit 

price and eliminate the ‘‘No Midpoint 

Execution’’ Modifier. The proposed rule 

change is available on the Exchange’s 

website at www.nyse.com, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 


jspears on DSK121TN23PROD with NOTICES1