Document ID: SEC-2022-0800-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MEMX, LLC
Posted Date: 2022-06-13T04:00Z

[Federal Register Volume 87, Number 113 (Monday, June 13, 2022)]
[Notices]
[Pages 35832-35836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12653]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95058; File No. SR-MEMX-2022-15]

Self-Regulatory Organizations; MEMX LLC; Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change To Amend the 
Exchange's Fee Schedule

June 7, 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 1, 2022, MEMX LLC (``MEMX'' or the ``Exchange'') 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing with the Commission a proposed rule change 
to amend the Exchange's fee schedule applicable to Members \3\ (the 
``Fee Schedule'') pursuant to Exchange Rules 15.1(a) and (c). The 
Exchange proposes to implement the changes to the Fee Schedule pursuant 
to this proposal on June 1, 2022. The text of the proposed rule change 
is provided in Exhibit 5.
---------------------------------------------------------------------------

    \3\ See Exchange Rule 1.5(p).
---------------------------------------------------------------------------

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 purpose of the proposed rule change is to amend the Fee 
Schedule to:

[[Page 35833]]

(i) adopt a new tier under the Liquidity Provision Tiers; (ii) modify 
the required criteria under one of the existing Liquidity Provision 
Tiers; and (iii) modify the required criteria and reduce the rebate 
provided under Non-Display Add Tier 1, each as further described below.
    The Exchange first notes that it operates in a highly competitive 
market in which market participants can readily direct order flow to 
competing venues if they deem fee levels at a particular venue to be 
excessive or incentives to be insufficient. More specifically, the 
Exchange is only one of 16 registered equities exchanges, as well as a 
number of alternative trading systems and other off-exchange venues, to 
which market participants may direct their order flow. Based on 
publicly available information, no single registered equities exchange 
currently has more than approximately 16% of the total market share of 
executed volume of equities trading.\4\ Thus, in such a low-
concentrated and highly competitive market, no single equities exchange 
possesses significant pricing power in the execution of order flow, and 
the Exchange currently represents approximately 4% of the overall 
market share.\5\ The Exchange in particular operates a ``Maker-Taker'' 
model whereby it provides rebates to Members that add liquidity to the 
Exchange and charges fees to Members that remove liquidity from the 
Exchange. The Fee Schedule sets forth the standard rebates and fees 
applied per share for orders that add and remove liquidity, 
respectively. Additionally, in response to the competitive environment, 
the Exchange also offers tiered pricing, which provides Members with 
opportunities to qualify for higher rebates or lower fees where certain 
volume criteria and thresholds are met. Tiered pricing provides an 
incremental incentive for Members to strive for higher tier levels, 
which provides increasingly higher benefits or discounts for satisfying 
increasingly more stringent criteria.
---------------------------------------------------------------------------

    \4\ Market share percentage calculated as of May 31, 2022. The 
Exchange receives and processes data made available through 
consolidated data feeds (i.e., CTS and UTDF).
    \5\ Id.
---------------------------------------------------------------------------

Adoption of New Liquidity Provision Tier
    The Exchange currently provides a standard rebate of $0.0020 per 
share for executions of orders in securities priced at or above $1.00 
per share that add displayed liquidity to the Exchange (such orders, 
``Added Displayed Volume''). The Exchange also currently offers 
Liquidity Provision Tiers 1, 2 and 3, under which a Member may receive 
an enhanced rebate for executions of Added Displayed Volume by 
achieving the corresponding required volume criteria for each tier. The 
Exchange now proposes to adopt a new tier under the Liquidity Provision 
Tiers, which, as proposed, would be the new Liquidity Provision Tier 1, 
and the current Liquidity Provision Tiers 1, 2 and 3 would be 
renumbered as Liquidity Provision Tiers 2, 3 and 4 (hereinafter 
referred to as such). The applicable rebates and required criteria 
under Liquidity Provision Tiers 2, 3 and 4 would remain unchanged, 
except for the required criteria under Liquidity Provision Tier 2, 
which the Exchange is proposing to modify, as further described below.
    Under the proposed new Liquidity Provision Tier 1, the Exchange 
will provide an enhanced rebate of $0.00335 per share for executions of 
Added Displayed Volume for Members that qualify for such tier by 
achieving a Displayed ADAV \6\ that is equal to or greater than 0.40% 
of the TCV.\7\ The Exchange proposes to provide Members that qualify 
for the proposed new Liquidity Provision Tier 1 a rebate of 0.05% of 
the total dollar volume of the transaction for executions of orders in 
securities priced below $1.00 per share that add displayed liquidity to 
the Exchange, which is the same rebate that is currently applicable to 
such executions for all Members. The proposed new Liquidity Provision 
Tier 1 is designed to encourage Members to maintain or increase their 
order flow that adds displayed liquidity to the Exchange in order to 
qualify for the proposed enhanced rebate for executions of Added 
Displayed Volume, thereby promoting price discovery and contributing to 
a deeper and more liquid market to the benefit of all market 
participants.
---------------------------------------------------------------------------

    \6\ As set forth on the Fee Schedule, ``ADAV'' means the average 
daily added volume calculated as the number of shares added per day, 
which is calculated on a monthly basis, and ``Displayed ADAV'' means 
ADAV with respect to displayed orders.
    \7\ As set forth on the Fee Schedule, ``TCV'' means total 
consolidated volume calculated as the volume reported by all 
exchanges and trade reporting facilities to a consolidated 
transaction reporting plan for the month for which the fees apply. 
The pricing for the proposed new Liquidity Provision Tier 1 is 
referred to by the Exchange on the Fee Schedule under the existing 
description ``Added displayed volume, Liquidity Provision Tier 1'' 
with a Fee Code of ``B1'', ``D1'' or ``J1'', as applicable, to be 
provided by the Exchange on the monthly invoices provided to 
Members. The Exchange notes that because the determination of 
whether a Member qualifies for a certain pricing tier for a 
particular month will not be made until after the month-end, the 
Exchange will provide the Fee Codes otherwise applicable to such 
transactions on the execution reports provided to Members during the 
month and will only designate the Fee Codes applicable to the 
achieved pricing tier on the monthly invoices, which are provided 
after such determination has been made, as the Exchange does for its 
tier-based pricing today. The Exchange also notes that the pricing 
for Liquidity Provision Tiers 2 and 3 will be referred to under the 
existing applicable descriptions and Fee Codes, and the pricing for 
Liquidity Provision Tier 4 will be referred to by the Exchange under 
the new description ``Added displayed volume, Liquidity Provision 
Tier 4'' with a Fee Code of ``B4'', ``D4'' or ``J4'', as applicable, 
to be provided by the Exchange on the monthly invoices provided to 
Members.
---------------------------------------------------------------------------

Modify Required Criteria Under Liquidity Provision Tier 2
    The Exchange is also proposing to modify the required criteria 
under Liquidity Provision Tier 2. Currently, a Member qualifies for 
such tier by achieving an ADAV that is equal to or greater than 0.25% 
of the TCV. The Exchange proposes to keep this criteria intact and 
adopt an additional (i.e., alternative) criteria that a Member may 
achieve in order to qualify for such tier. Specifically, the Exchange 
proposes to modify the required criteria such that a Member would also 
qualify for Liquidity Provision Tier 2 by achieving: (i) an ADAV that 
is equal to or greater than 0.15% of the TCV; and (ii) a Step-Up ADAV 
\8\ from May 2022 that is equal to or greater than 0.05% of the TCV. 
Thus, such proposed change would add an alternative criteria that 
includes a lower overall ADAV threshold but that also requires such 
Member to increase its ADAV above its May 2022 ADAV by a specified 
threshold. The Exchange notes that it is not proposing to change the 
rebates provided under Liquidity Provision Tier 2.
---------------------------------------------------------------------------

    \8\ As set forth on the Fee Schedule, ``Step-Up ADAV'' means 
ADAV in the relevant baseline month subtracted from current ADAV.
---------------------------------------------------------------------------

    The Exchange believes that the proposed alternative criteria 
provides an incremental incentive for Members to strive for higher ADAV 
on the Exchange (above their ADAV in the month immediately preceding 
the effectiveness of this proposal--i.e., May 2022) to receive the 
corresponding enhanced rebate for executions of Added Displayed Volume 
under such tier, and thus, it is designed to encourage Members that do 
not currently qualify for such tier to increase their orders that add 
liquidity to the Exchange. The Exchange believes that the tier, as 
proposed, would further incentivize increased order flow to the 
Exchange, thereby contributing to a deeper and more liquid market to 
the benefit of all market participants. The Exchange notes that, as the 
proposed change to the

[[Page 35834]]

required criteria under Liquidity Provision Tier 2 merely provides an 
alternative criteria and does not change the existing criteria, the 
Exchange believes that such change would make the tier easier for 
Members to achieve, and, in turn, while the Exchange has no way of 
predicting with certainty how the proposed new criteria will impact 
Member activity, the Exchange expects that more Members will strive to 
qualify for such tier than currently do, resulting in the submission of 
additional order flow to the Exchange.
Reduce Rebate and Modify Criteria Under Non-Display Add Tier 1
    Lastly, the Exchange proposes to modify the required criteria and 
reduce the rebate provided under Non-Display Add Tier 1. Currently, a 
Member qualifies for Non-Display Add Tier 1 by achieving a Non-
Displayed ADAV \9\ that is equal to or greater than 5,000,000 shares, 
and the Exchange provides a rebate of $0.0028 per share for a 
qualifying Member's executions of orders in securities priced at or 
above $1.00 per share that add non-displayed liquidity to the Exchange 
(such orders, ``Added Non-Displayed Volume''). Now, the Exchange 
proposes to lower the Non-Displayed ADAV threshold such that a Member 
would qualify for such tier by achieving a Non-Displayed ADAV that is 
equal to or greater than 3,000,000 shares. The Exchange also proposes 
to reduce the rebate for a qualifying Member's executions of Added Non-
Displayed Volume to $0.0027 per share.\10\ The Exchange is not 
proposing to change the rebate provided under such tier for executions 
of orders in securities priced below $1.00 per share.
---------------------------------------------------------------------------

    \9\ As set forth on the Fee Schedule, ``Non-Displayed ADAV'' 
means ADAV with respect to non-displayed orders (including Midpoint 
Peg orders).
    \10\ The proposed pricing for Non-Display Add Tier 1 is referred 
to by the Exchange on the Fee Schedule under the existing 
description ``Added non-displayed volume, Non-Display Add Tier 1'' 
with a Fee Code of ``H1'' or ``M1'', as applicable, to be provided 
by the Exchange on the monthly invoices provided to Members.
---------------------------------------------------------------------------

    The Exchange notes that the proposed change to the required 
criteria under Non-Display Add Tier 1 would lower the Non-Displayed 
ADAV threshold, which the Exchange believes would make such tier easier 
for Members to achieve, and, in turn, while the Exchange has no way of 
predicting with certainty how the proposed new criteria will impact 
Member activity, the Exchange expects that more Members will strive to 
qualify for such tier than currently do, resulting in the submission of 
additional order flow to the Exchange. The purpose of reducing the 
rebate provided for executions of Added Non-Displayed Volume under such 
tier as proposed (i.e., by $0.0001 per share), which the Exchange 
believes is a modest reduction and is commensurate with the proposed 
lower Non-Displayed ADAV threshold, is for business and competitive 
reasons, as the Exchange believes that such reduction would decrease 
the Exchange's expenditures with respect to its transaction pricing in 
a manner that is still consistent with the Exchange's overall pricing 
philosophy of encouraging added liquidity.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\11\ in general, and with 
Sections 6(b)(4) and 6(b)(5) of the Act,\12\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among its Members and other persons using its facilities 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    As discussed above, the Exchange operates in a highly fragmented 
and competitive market in which market participants can readily direct 
order flow to competing venues if they deem fee levels at a particular 
venue to be excessive or incentives to be insufficient, and the 
Exchange represents only a small percentage of the overall market. The 
Commission and the courts have repeatedly expressed their preference 
for competition over regulatory intervention in determining prices, 
products, and services in the securities markets. 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.'' \13\
---------------------------------------------------------------------------

    \13\ Securities Exchange Act Release No. 51808 (June 9, 2005), 
70 FR 37496, 37499 (June 29, 2005).
---------------------------------------------------------------------------

    The Exchange believes that the ever-shifting market share among the 
exchanges from month to month demonstrates that market participants can 
shift order flow or discontinue to reduce use of certain categories of 
products, in response to new or different pricing structures being 
introduced into the market. Accordingly, competitive forces constrain 
the Exchange's transaction fees and rebates, and market participants 
can readily trade on competing venues if they deem pricing levels at 
those other venues to be more favorable. The Exchange believes the 
proposal reflects a reasonable and competitive pricing structure 
designed to incentivize market participants to direct additional orders 
that add liquidity to the Exchange, which the Exchange believes would 
deepen liquidity and promote price discovery and market quality on the 
Exchange to the benefit of all market participants, thereby enhancing 
the attractiveness of the Exchange as a trading venue.
    The Exchange notes that volume-based incentives and discounts have 
been widely adopted by exchanges, including the Exchange, and are 
reasonable, equitable and not unfairly discriminatory because they are 
open to all members on an equal basis and provide additional benefits 
or discounts that are reasonably related to the value to an exchange's 
market quality associated with higher levels of market activity, such 
as higher levels of liquidity provision and/or growth patterns, and the 
introduction of higher volumes of orders into the price and volume 
discovery process. The Exchange believes that the proposed new 
Liquidity Provision Tier 1 is reasonable, equitable and not unfairly 
discriminatory for these same reasons, as it would provide Members with 
an additional incentive to achieve a certain volume threshold on the 
Exchange, is available to all Members on an equal basis, and, as noted 
above, is designed to encourage Members to maintain or increase their 
orders that add displayed liquidity to the Exchange in order to qualify 
for the enhanced rebate for executions of Added Displayed Volume, 
thereby promoting price discovery and contributing to a deeper and more 
liquid market to the benefit of all market participants. The Exchange 
also believes the enhanced rebate for executions of Added Displayed 
Volume under the proposed new Liquidity Provision Tier 1 reflects a 
reasonable and equitable allocation of fees and rebates because it is 
higher than the rebates provided for such executions under Liquidity 
Provision Tiers 2, 3 and 4, which have lower volume thresholds as their 
required criteria, and is commensurate with its required criteria and 
the market quality benefits it is designed to achieve, as described 
above.
    The Exchange believes that the proposed change to modify the 
required criteria under Liquidity Provision Tier 2 is reasonable 
because, as noted above, such change would keep the existing

[[Page 35835]]

ADAV threshold intact and also provide an alternative criteria that a 
Member may choose to achieve that includes a lower overall ADAV 
threshold but that also requires such Member to increase its ADAV above 
its May 2022 ADAV by a specified threshold, which would incentivize the 
submission of additional order flow to the Exchange, thereby 
contributing to a deeper and more liquid market to the benefit of all 
market participants. The Exchange also believes the proposed new 
criteria is equitable and not unfairly discriminatory because all 
Members will continue to be eligible to meet such criteria, including 
the Members that currently meet the existing ADAV threshold that is not 
changing. Further, as noted above, while the Exchange has no way of 
predicting with certainty how the proposed new criteria will impact 
Member activity, the Exchange expects that more Members will strive to 
qualify for such tier under the proposed new criteria, which is more 
expansive.
    The Exchange also believes that the proposed change to modify the 
required criteria under Non-Display Add Tier 1 is reasonable, equitable 
and not unfairly discriminatory because, as noted above, it would lower 
the Non-Displayed ADAV threshold, which the Exchange believes would 
make such tier easier for Members to achieve, and all Members will 
continue to be eligible to meet such criteria. As described above, 
while the Exchange has no way of predicting with certainty how the 
proposed new criteria will impact Member activity, the Exchange expects 
that more Members will strive to qualify for such tier than currently 
do. The Exchange also believes that the proposed change to reduce the 
rebate provided under Non-Display Add Tier 1 is reasonable, equitable 
and not unfairly discriminatory because, as noted above, the Exchange 
believes that reducing the rebate as proposed (i.e., by $0.0001 per 
share) is a modest reduction, is commensurate with the proposed lower 
Non-Displayed ADAV threshold, and would decrease the Exchange's 
expenditures with respect to its transaction pricing in a manner that 
is still consistent with the Exchange's overall pricing philosophy of 
encouraging added liquidity.
    For the reasons discussed above, the Exchange submits that the 
proposal satisfies the requirements of Sections 6(b)(4) and 6(b)(5) of 
the Act \14\ in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among its Members and other 
persons using its facilities and is not designed to unfairly 
discriminate between customers, issuers, brokers, or dealers. As 
described more fully below in the Exchange's statement regarding the 
burden on competition, the Exchange believes that its transaction 
pricing is subject to significant competitive forces, and that the 
proposed fees and rebates described herein are appropriate to address 
such forces.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposal will result in any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. Instead, as discussed above, 
the proposal is intended to incentivize market participants to direct 
additional orders that add liquidity to the Exchange, thereby deepening 
liquidity and promoting price discovery and market quality on the 
Exchange to the benefit of all market participants, as well as to 
decrease the Exchange's expenditures with respect to its transaction 
pricing in a manner that is still consistent with the Exchange's 
overall pricing philosophy of encouraging added displayed liquidity. As 
a result, the Exchange believes the proposal would enhance its 
competitiveness as a market that attracts actionable orders, thereby 
making it a more desirable destination venue for its customers. For 
these reasons, the Exchange believes that the proposal furthers the 
Commission's goal in adopting Regulation NMS of fostering competition 
among orders, which promotes ``more efficient pricing of individual 
stocks for all types of orders, large and small.'' \15\
---------------------------------------------------------------------------

    \15\ See supra note 13.
---------------------------------------------------------------------------

Intramarket Competition
    As discussed above, the Exchange believes that the proposal would 
incentivize Members to submit additional orders that add liquidity to 
the Exchange, thereby contributing to a deeper and more liquid market 
and promoting price discovery and market quality on the Exchange to the 
benefit of all market participants as well as enhancing the 
attractiveness of the Exchange as a trading venue, which the Exchange 
believes, in turn, would continue to encourage market participants to 
direct additional order flow to the Exchange. Greater liquidity 
benefits all Members by providing more trading opportunities and 
encourages Members to send additional orders to the Exchange, thereby 
contributing to robust levels of liquidity, which benefits all market 
participants. The opportunity to qualify for the new Liquidity 
Provision Tier 1 and the modified criteria under Liquidity Provision 
Tier 2 and Non-Display Add Tier 1, and thus receive the corresponding 
rebates for executions of Added Displayed Volume and Added Non-
Displayed Volume, respectively, would be available to all Members that 
meet the associated volume requirements in any month. As described 
above, the Exchange believes that the proposed new required criteria 
under both Liquidity Provision Tier 2 and Non-Display Add Tier 1 would 
make such tiers easier to qualify for, as the proposed changes either 
add an alternative criteria (while keeping the existing criteria 
intact) or lower the required volume threshold, and the Exchange 
believes that all such proposed new criteria are reasonably related to 
the enhanced liquidity and market quality that such tiers are designed 
to promote. Additionally, as noted above, the proposed reduced rebate 
for executions of Added Non-Displayed Volume under Non-Display Add Tier 
1 would continue to apply equally to all Members in the same manner as 
it does today, except that qualification for the tier would be easier 
due to the lowered volume threshold, and the Exchange believes that 
such rebate represents only a modest reduction from the current rebate 
provided under the tier for executions of Added Non-Displayed Volume 
and is commensurate with the proposed lowered volume threshold. For the 
foregoing reasons, the Exchange believes the proposed changes would not 
impose any burden on intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act.
Intermarket Competition
    As noted above, the Exchange operates in a highly competitive 
market in which market participants can readily direct order flow to 
competing venues if they deem fee levels at a particular venue to be 
excessive or incentives to be insufficient. Members have numerous 
alternative venues that they may participate on and direct their order 
flow to, including 15 other equities exchanges and numerous alternative 
trading systems and other off-exchange venues. As noted above, no 
single registered equities exchange currently has more than 
approximately 16% of the total market share of executed volume of 
equities trading. Thus, in such a low-concentrated and highly 
competitive market, no single equities exchange possesses significant 
pricing power in the execution of order flow. Moreover, the Exchange 
believes

[[Page 35836]]

that the ever-shifting market share among the exchanges from month to 
month demonstrates that market participants can shift order flow or 
discontinue to reduce use of certain categories of products, in 
response to new or different pricing structures being introduced into 
the market. Accordingly, competitive forces constrain the Exchange's 
transaction fees and rebates, including with respect to executions of 
Added Displayed Volume and Added Non-Displayed Volume, and market 
participants can readily choose to send their orders to other exchange 
and off-exchange venues if they deem fee levels at those other venues 
to be more favorable. As described above, the proposed changes 
represent a competitive proposal through which the Exchange is seeking 
to decrease the Exchange's expenditures with respect to its transaction 
pricing and to encourage additional order flow to the Exchange through 
volume-based tiers, which have been widely adopted by exchanges, 
including the Exchange. Accordingly, the Exchange believes the proposal 
would not burden, but rather promote, intermarket competition by 
enabling it to better compete with other exchanges that offer similar 
pricing incentives to market participants that achieve certain volume 
criteria and thresholds.
    Additionally, 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.'' \16\ The fact 
that this market is competitive has also long been recognized by the 
courts. In NetCoalition v. SEC, 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 broker-dealers 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'. . . .''.\17\ Accordingly, the Exchange does not believe its 
proposed pricing changes impose any burden on competition that is not 
necessary or appropriate in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \16\ See supra note 13.
    \17\ NetCoalition 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-NYSE-2006-21)).
---------------------------------------------------------------------------

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \18\ and Rule 19b-4(f)(2) \19\ thereunder.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \19\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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 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 [email protected]. Please include 
File Number SR-MEMX-2022-15 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-MEMX-2022-15. 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-MEMX-2022-15 and should be submitted on 
or before July 5, 2022.
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-12653 Filed 6-10-22; 8:45 am]
BILLING CODE 8011-01-P