30 Day Notice

Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Notices
participate on and direct their order
flow, including 15 other options
exchanges, as well as off-exchange
venues, where competitive products are
available for trading. Based on publicly
available information, no single options
exchange has more than 16% of the
market share of executed volume of
options trades.12 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.’’ 13 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’. . ..’’.14 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

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The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
12 See Cboe Global Markets, U.S. Options Market
Volume Summary by Month (April 21, 2022),
available at http://markets.cboe.com/us/options/
market_share/.
13 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
14 NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir.
2010) (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782–83
(December 9, 2008) (SR–NYSEArca–2006–21)).

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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 15 and paragraph (f) of Rule
19b–4 16 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–2022–022 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–2022–022. 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
15
16

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

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Fmt 4703

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–2022–022 and
should be submitted on or before May
31, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–09959 Filed 5–9–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–247, OMB Control No.
3235–0259]

Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 19h–1

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.) the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 19h–1 (17 CFR 240.19h–1), under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 19h–1 prescribes the form and
content of notices and applications by
self-regulatory organizations (‘‘SROs’’)
regarding proposed admissions to, or
continuances in, membership,
participation or association with a
member of any person subject to a
statutory disqualification.
17

Sfmt 4703

28063

17 CFR 200.30–3(a)(12).

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Federal Register / Vol. 87, No. 90 / Tuesday, May 10, 2022 / Notices

The Commission uses the information
provided in the submissions filed
pursuant to Rule 19h–1 to review
decisions by SROs to permit the entry
into or continuance in the securities
business of persons who have
committed serious misconduct. The
filings submitted pursuant to the Rule
also permit inclusion of an application
to the Commission for consent to
associate with a member of an SRO
notwithstanding a Commission order
barring such association.
The Commission reviews filings made
pursuant to the Rule to ascertain
whether it is in the public interest to
permit the employment in the securities
business of persons subject to statutory
disqualification. The filings contain
information that is essential to the staff’s
review and ultimate determination on
whether an association or employment
is in the public interest and consistent
with investor protection.
It is estimated that approximately 20
respondents will make submissions
pursuant to this Rule annually. With
respect to submissions for Rule 19h–1(a)
notices, and based upon past
submissions, the staff estimates that
respondents will make a total of 11
submissions per year. The staff
estimates that the average number of
hours necessary to complete a
submission pursuant to Rule 19h–1(a)
notices is 80 hours (for a total annual
burden for all respondents in the
amount of 17,600 hours). With respect
to submissions for Rule 19h–1(a)(4)
notifications, and based upon past
submissions, the staff estimates that
respondents will make a total of 9
submissions per year. The staff
estimates that the average number of
hours necessary to complete a
submission pursuant to Rule 19h–1(a)(4)
notifications is 80 hours (for a total
annual burden for all respondents in the
amount of 14,400 hours). With respect
to submissions for Rule 19h–1(b), and
based upon past submissions, the staff
estimates that respondents will make a
total of 28 submissions per year. The
staff estimates that the average number
of hours necessary to complete a
submission pursuant to Rule 19h–1(b) is
13 hours (for a total annual burden for
all respondents in the amount of 7,280
hours). With respect to submissions for
Rule 19h–1(d), and based upon past
submissions, the staff estimates that
respondents will make a total of 5
submissions per year. The staff
estimates that the average number of
hours necessary to complete a
submission pursuant to Rule 19h–1(d) is
80 hours (for a total annual burden for
all respondents in the amount of 8,000
hours). The aggregate annual burden for

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all respondents is thus approximately
47,280 hours (17,600 +14,400 + 7,280 +
8,000).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].

adopt rules to govern the trading of
options on the Exchange. The text of the
proposed rule change is provided in
Exhibit 5.

Dated: May 4, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.

Purpose

[FR Doc. 2022–09951 Filed 5–9–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94847; File No. SR–MEMX–
2022–10]

Self-Regulatory Organizations; MEMX
LLC; Notice of Filing of a Proposed
Rule Change To Adopt Rules To
Govern the Trading of Options on the
Exchange for a New Facility Called
MEMX Options
May 4, 2022.

Pursuant to 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 April 21,
2022, MEMX LLC (‘‘MEMX’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘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 is filing with the
Commission a proposed rule change to
1 15
2 17

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U.S.C. 78s(b)(1).
CFR 240.19b–4.

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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
The Exchange is proposing to adopt a
series of rules in connection with
MEMX Options, which will be a facility
of the Exchange. MEMX Options will
operate an electronic trading system
developed to trade options (the
‘‘System’’) leveraging the Exchange’s
existing robust and resilient technology
platform that it uses to operate its cash
equities market today. The fundamental
premise of the proposal is that the
Exchange will operate its options
market much as it operates its cash
equities market today and in a manner
similar to that of other options
exchanges, with a simplified suite of
conventional order types and
functionality that is designed to provide
for an efficient, robust, and transparent
order matching process. Much of the
proposed functionality for MEMX
Options is substantially similar to that
offered by other options exchanges,
primarily Cboe BZX Exchange, Inc.
(‘‘BZX’’). Thus, the Exchange proposes
to adopt rules applicable to MEMX
Options that are substantively identical
or substantially similar to the approved
rules of BZX applicable to the BZX
options market (‘‘BZX Options’’), with
certain proposed changes or omissions
that are described below.
The System will provide for the
electronic display and execution of
orders in price/time priority without
regard to the status of the entities that
are entering orders. All Exchange
Members will be eligible to participate
in MEMX Options provided that the
Exchange specifically authorizes them
to trade in the System. The System will

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