30 Day Notice

3235-0733.pdf

Rule of Practice 194

30 Day Notice

OMB: 3235-0733

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Federal Register / Vol. 87, No. 181 / Tuesday, September 20, 2022 / Notices
initial fixed cost for Members. The
Exchange now believes that it is
appropriate to remove these credits in
light of the current operating conditions,
including the Exchange’s overall
membership and the current type and
amount of volume executed on the
Exchange. The Exchange believes that
the Exchange’s current rebates and fees
will still allow the Exchange to remain
highly competitive such that the
Exchange should continue to attract
order flow and maintain market share.
Inter-Market Competition
The Exchange operates in a highly
competitive market in which market
participants can readily favor one of the
15 competing options venues if they
deem fee levels at a particular venue to
be excessive. Based on publiclyavailable information, and excluding
index-based options, no single exchange
has more than approximately 16%
market share. Therefore, no exchange
possesses significant pricing power
regarding memberships or in the
execution of multiply-listed equity and
exchange-traded fund (‘‘ETF’’) options
order flow. Over the course of 2021 and
2022, the Exchange’s market share has
fluctuated between approximately 3–6%
of the U.S. equity options industry.27
The Exchange is not aware of any
evidence that a market share of
approximately 3–6% provides the
Exchange with anti-competitive pricing
power when it comes to competition for
memberships. The Exchange believes
that the ever-shifting market share
among exchanges from month to month
demonstrates that market participants
can discontinue memberships in
response to fee changes. In such an
environment, the Exchange must
continually adjust its fees to remain
competitive with other exchanges and to
attract and retain memberships on the
Exchange. Lastly, the proposed fee
change will not impact intermarket
competition because it will apply to all
Members equally.

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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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,28 and Rule

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–
PEARL–2022–35 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–PEARL–2022–35. 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
a.m. and 3 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–
PEARL–2022–35 and should be
submitted on or before October 11,
2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–20269 Filed 9–19–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–780, OMB Control No.
3235–0733]

Submission for OMB Review;
Comment Request; Extension: Rule
194
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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
Commission Rule of Practice 194, (17
CFR 240.194), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.).
Rule of Practice 194 provides a
process for security-based swap dealers
and major security-based swap
participants (collectively, ‘‘SBS Entity’’)
to make an application to the
Commission for an order permitting an
associated person who is subject to a
statutory disqualification to effect or be
involved in effecting security-based
swaps on behalf of the SBS Entity. Rule
of Practice 194 specifies the process for
obtaining relief from the statutory
prohibition in Exchange Act Section
15F(b)(6), including by setting forth the
required showing, the form of
application and the items to be
addressed with respect to associated
persons that are natural persons. An
SBS Entity is not required to file an

27 See
28 15

supra note 6.
U.S.C. 78s(b)(3)(A)(ii).

19b–4(f)(2) 29 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 shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.

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Federal Register / Vol. 87, No. 181 / Tuesday, September 20, 2022 / Notices

application under Rule of Practice 194
with respect to certain associated
persons that are subject to a statutory
disqualification, as provided for in
paragraph (h) of Rule of Practice 194. To
meet those requirements, however, the
SBS Entity is required to file a notice
with the Commission.
It is estimated that approximately 50
entities may fit within the definition of
security-based swap dealer and up to
five entities may fit within the
definition of major security-based swap
participant—55 SBS Entities in total.
The Commission anticipates that, on an
average annual basis, only a small
fraction of the natural persons at an SBS
Entity would be subject to a statutory
disqualification. Accordingly, based on
available data, the Commission
estimates that, on an average annual
basis, the Commission would receive up
to five applications in accordance with
Rule of Practice 194 with respect to
associated persons that are natural
persons, and five notices pursuant to
proposed Rule of Practice 194(h) with
respect to associated persons that are
natural persons. The Commission
estimates that the average time
necessary for an SBS Entity to research
the questions, and complete and file an
application under Rule of Practice 194
with respect to associated persons that
are natural persons is approximately 30
hours, for a total of approximately 150
burden hours per year for all SBS
Entities. The Commission estimates that
approximately five SBS Entities will
provide notices pursuant to Rule of
Practice 194(h) for one natural person
each on an average annual basis taking
approximately 6 hours per notice, for a
total of approximately 30 burden hours
per year for all SBS Entities providing
the notices for an estimated five natural
persons. As such, the combined
estimated annual hour burden for all
SBS Entities to complete applications
and notices pursuant to Rule of Practice
194 is approximately 180 hours per year
(150 + 30).
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 by
October 20, 2022 to (i) www.reginfo.gov/
public/do/PRAMain and (ii) David

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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: PRA_Mailbox@
sec.gov.
Dated: September 14, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–20254 Filed 9–19–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95774; File No. SR–
PEARL–2022–30]

Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Withdrawal of
Proposed Rule Change To Amend the
MIAX PEARL Options Fee Schedule To
Remove Certain Credits and Increase
Trading Permit Fees
September 14, 2022.

On July 26, 2022, MIAX PEARL, LLC
(‘‘MIAX Pearl’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 1 and Rule 19b–4 thereunder,2 a
proposed rule change to remove certain
credits and increase trading permit fees.
The proposed rule change was
published for comment in the Federal
Register on August 10, 2022.3
On August 31, 2022, MIAX Pearl
withdrew the proposed rule change
(SR–PEARL–2022–30).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–20274 Filed 9–19–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95771; File No. SR–ISE–
2022–19]

Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its PortRelated Fees at Options 7, Section 7
September 14, 2022.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 95419
(August 4, 2022), 87 FR 48702.
4 17 CFR 200.30–3(a)(12).
2 17

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(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 1, 2022, Nasdaq ISE, LLC
(‘‘ISE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s port-related fees at Options
7, Section 7, as described further below.
The text of the proposed rule change is
available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/ise/rules, 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
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 Options 7, Section
7 to (i) prorate port fees for the first
month of service, (ii) clarify that port
fees for cancelled services will continue
to be charged for the remainder of
month, (iii) clarify that Disaster
Recovery Port Fees are not charged for
market data ports listed in Options 7,
Section 7C(iii), and (iv) clarify that
Nasdaq Testing Facility (‘‘NTF’’) ports
are provided at no cost.
Currently, the Exchange does not
prorate port connectivity fees. Thus,
participants are assessed a full month’s
fee if they direct the Exchange to make
the subscribed connectivity live on any
day of the month, including the last day
1 15
2 17

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U.S.C. 78s(b)(1).
CFR 240.19b–4.

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File Modified2022-09-19
File Created2022-09-20

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