Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Pricing Schedule at Options 7, Section 1, General Provisions, 70872-70874 [2021-26858]
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70872
Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Notices
Agency, including whether the
information shall have practical utility;
(b) the accuracy of the Agency’s
estimate of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and (d) ways to
minimize the burden of the collection of
information on those who are to
respond, including through the use of
appropriate automated, electronic,
mechanical, or other technological
collection techniques or other forms of
information technology.
Dated: December 8, 2021.
Suzanne H. Plimpton,
Reports Clearance Officer, National Science
Foundation.
[FR Doc. 2021–26935 Filed 12–10–21; 8:45 am]
BILLING CODE 7555–01–P
POSTAL REGULATORY COMMISSION
[Docket No. CP2022–30; Order No. 6053]
Inbound Competitive Multi-Service
Agreements With Foreign Postal
Operators
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is
acknowledging a recent filing by the
Postal Service that it has entered into
the Inbound Competitive Multi-Service
Agreement with Foreign Postal
Operators (FPOs). This notice informs
the public of the filing, invites public
comment, and takes other
administrative steps.
DATES: Comments are due: December
21, 2021.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
Table of Contents
I. Introduction
II. Commission Action
III. Ordering Paragraphs
I. Introduction
On December 3, 2021, the Postal
Service filed a notice with the
VerDate Sep<11>2014
16:50 Dec 10, 2021
Jkt 256001
Commission pursuant to 39 CFR
3035.105 and Order No. 546,1 giving
notice that it has entered into an
Inbound Competitive Multi-Service
Agreement with a foreign postal
operator (FPO). The Notice concerns the
inbound portions of the Competitive
multi-product agreement entered into by
the Postal Service and an FPO, referred
to as ‘‘FPO–USPS Agreement FY22–1.’’
Notice at 1. The Postal Service seeks to
include FPO–USPS Agreement FY22–1
within the Inbound Competitive MultiService Agreement with Foreign Postal
Operators 1 (MC2010–34) product. Id.
The Postal Service asserts that FPO–
USPS Agreement FY22–1 ‘‘is
functionally equivalent to the baseline
agreement filed in Docket No. MC2010–
34 because the terms of this agreement
are similar in scope and purpose to the
terms of the CP2010–95 Agreement.’’ Id.
at 3. Concurrent with the Notice, the
Postal Service filed supporting financial
documentation and the following
documents:
• Attachment 1—an application for
non-public treatment;
• Attachment 2—the FPO–USPS
Agreement FY22–1;
• Attachment 3—Governors’ Decision
No. 19–1;
• Attachment 4—a certified statement
required by 39 CFR 3035.105(c)(2). Id. at
5.
The Postal Service states it intends for
FPO–USPS Agreement FY22–1 to take
effect on January 1, 2022. Id. at 1. The
Postal Service notes that FPO–USPS
Agreement FY22–1 provides rates for
inbound tracked packets. Id. at 6.
The Postal Service states that FPO–
USPS Agreement FY22–1 is in
compliance with 39 U.S.C. 3633 and is
functionally equivalent to the inbound
Competitive portions of the CP2010–95
agreement, which was included in the
Inbound Competitive Multi-Service
Agreements with Foreign Postal
Operators 1 product (MC2010–34). Id. at
9. For these reasons, the Postal Service
avers that FPO–USPS Agreement FY22–
1 should be added to the Inbound
Competitive Multi-Service Agreements
with Foreign Postal Operators 1
product. Id.
II. Commission Action
The Commission establishes Docket
No. CP2022–30 to consider the Notice.
1 Notice of United States Postal Service of Filing
Functionally Equivalent Inbound Competitive
Multi-Service Agreement with Foreign Postal
Operator—FY22–1, December 3, 2021 (Notice).
Docket Nos. MC2010–34 and CP2010–95, Order
Adding Inbound Competitive Multi-Service
Agreements with Foreign Postal Service Operators
1 to the Competitive Product List and Approving
Included Agreement, September 29, 2010 (Order
No. 546).
PO 00000
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Fmt 4703
Sfmt 4703
Interested persons may submit
comments on whether the FPO–USPS
Agreement FY22–1 is consistent with 39
U.S.C. 3633 and 39 CFR 3035.105 and
whether it is functionally equivalent to
the inbound Competitive portions of the
Docket No. CP2010–95 agreement,
which was included in the Inbound
Competitive Multi-Service Agreements
with Foreign Postal Operators 1 product
(MC2010–34). Comments are due by
December 21, 2021.
The Notice and related filings are
available on the Commission’s website
(https://www.prc.gov). The Commission
encourages interested persons to review
the Notice for further details.
The Commission appoints Kenneth R.
Moeller to serve as Public
Representative in this proceeding.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. CP2022–30 for consideration of the
matters raised by the Notice of United
States Postal Service of Filing
Functionally Equivalent Inbound
Competitive Multi-Service Agreement
with Foreign Postal Operator—FY22–1,
filed on December 3, 2021.
2. Pursuant to 39 U.S.C. 505, Kenneth
R. Moeller is appointed to serve as an
officer of the Commission (Public
Representative) to represent the
interests of the general public in this
proceeding.
3. Comments by interested persons
are due by December 21, 2021.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2021–26845 Filed 12–10–21; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93728; File No. SR–
NASDAQ–2021–095]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Pricing Schedule at Options 7, Section
1, General Provisions
December 7, 2021.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),2 and Rule 19b–4 thereunder,3
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\13DEN1.SGM
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Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Notices
notice is hereby given that on December
1, 2021, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘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
Nasdaq Options Market LLC’s (‘‘NOM’’)
Pricing Schedule at Options 7, Section
1, General Provisions.
While the changes proposed herein
are effective upon filing, the Exchange
has designated the amendments become
operative on December 1, 2021.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/nasdaq/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.
khammond on DSKJM1Z7X2PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NOM proposes to amend its Pricing
Schedule at Options 7, Section 1,
General Provisions. Specifically, NOM
proposes to amend the way an Exchange
Participant indicates its participation in
the Affiliated Entity Program.
Specifically, the Exchange proposes to
amend the description of ‘‘Affiliated
Entity’’ within Options 7, Section 1,
General Provisions. Currently, the term
‘‘Affiliated Entity’’ is described as,
a relationship between an Appointed MM
and an Appointed OFP for purposes of
aggregating eligible volume for pricing in
Options 7, Sections 2(1) and 2(6) for which
a volume threshold or volume percentage is
required to qualify for higher rebates or lower
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16:50 Dec 10, 2021
Jkt 256001
fees. NOM Market Makers and OFPs are
required to send an email to the Exchange to
appoint their counterpart at least 3 business
days prior to the last day of the month to
qualify for the next month. The Exchange
will acknowledge receipt of the emails and
specify the date the Affiliated Entity is
eligible for applicable pricing in Options 7,
Sections 2(1) and 2(6). Each Affiliated Entity
relationship will commence on the 1st of a
month and may not be terminated prior to
the end of any month. An Affiliated Entity
Relationship will terminate after a one (1)
year period, unless either party terminates
earlier in writing by sending an email to the
Exchange at least 3 business days prior to the
last day of the month to terminate for the
next month. Affiliated Entity relationships
must be renewed annually. Participants
under Common Ownership may not qualify
as a counterparty comprising an Affiliated
Entity. Each Participant may qualify for only
one (1) Affiliated Entity relationship at any
given time.
Today, Participants are required to
annually renew their Affiliate Entity
relationship at the end of one year if
they desire to continue the relationship.
The parties must both send an email to
the Exchange to avoid termination of the
relationship, provided the relationship
was not terminated earlier in the year.
The Exchange believes that this process
is burdensome for Participants that
desire to remain in the program. The
consequence of not renewing is
termination. The Exchange desires to
remove the administrative burden
associated with the requirement to
annually renew and instead provide that
the Affiliated Entity relationship will
automatically renew each month, unless
otherwise terminated. The proposed
new rule text would provide,
The term ‘‘Affiliated Entity’’ is a
relationship between an Appointed MM and
an Appointed OFP for purposes of
aggregating eligible volume for pricing in
Options 7, Sections 2(1) and 2(6) for which
a volume threshold or volume percentage is
required to qualify for higher rebates or lower
fees. NOM Market Makers and OFPs are
required to send an email to the Exchange to
appoint their counterpart at least 3 business
days prior to the last day of the month to
qualify for the next month. The Exchange
will acknowledge receipt of the emails and
specify the date the Affiliated Entity is
eligible for applicable pricing in Options 7,
Sections 2(1) and 2(6). Each Affiliated Entity
relationship will commence on the 1st of a
month and may not be terminated prior to
the end of any month. An Affiliated Entity
Relationship will automatically renew each
month until or unless either party terminates
earlier in writing by sending an email to the
Exchange at least 3 business days prior to the
last day of the month to terminate for the
next month. Participants under Common
Ownership may not qualify as a counterparty
comprising an Affiliated Entity. Each
Participant may qualify for only one (1)
Affiliated Entity relationship at any given
time.
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
70873
As is the case today, parties to the
Affiliated Entity relationship may
decide to terminate the relationship
during any month by sending an email
to the Exchange at least 3 business days
prior to the last day of the month to
terminate for the next month. Cboe
Exchange, Inc. (‘‘Cboe’’) has a similar
automatic renewal process for its
Appointed OFP and Appointed MarketMaker Program.4 The Exchange believes
that this amendment will streamline the
workflow for Participants by not
requiring Participants to renew each
year to continue the affiliated
relationship.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,5 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,6 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange’s proposal to amend
the way Exchange Participants indicate
their participation in the Affiliated
Entity Program is reasonable. Today,
Participants are required to annually
renew their Affiliated Entity
relationship at the end of one year if
they desire to continue the relationship.
The parties must both send an email to
the Exchange to avoid termination of the
relationship, provided the relationship
was not terminated earlier in the year.
The Exchange believes that this process
is burdensome for Participants that
desire to remain in the program. The
consequence of not renewing is
termination of their participation in the
4 See Cboe’s Fees Schedule at footnote 23 ‘‘A
Market-Maker may designate an Order Flow
Provider (‘‘OFP’’) as its ‘‘Appointed OFP’’ and an
OFP may designate a Market-Maker to be its
‘‘Appointed Market-Maker’’ for purposes of
qualifying for credits under AVP. In order to
effectuate the appointment, the parties would need
to submit the Appointed Affiliate Form to the
Exchange by 3:00 p.m. CST on the first business day
of the month in order to be eligible to qualify for
credits under AVP for that month. The Exchange
will recognize only one such designation for each
party once every calendar month, which
designation will automatically renew each month
until or unless the Exchange receives an email from
either party indicating that the appointment has
been terminated. A Market-Maker that has both an
Affiliate OFP and Appointed OFP will only qualify
based upon the volume of its Appointed OFP. The
volume of an OFP that has both an Affiliate MarketMaker and Appointed Market-Maker will only
count towards qualifying the Appointed MarketMaker. Volume executed in open outcry is not
eligible to receive a credit under AVP.’’
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4) and (5).
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70874
Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Notices
program. The Exchange desires to
remove the administrative burden
associated with the requirement to
annually renew and instead provide that
the Affiliated Entity relationship will
automatically renew each month, unless
otherwise terminated. As is the case
today, parties to the Affiliated Entity
relationship may decide to terminate the
relationship during any month by
sending an email to the Exchange at
least 3 business days prior to the last
day of the month to terminate for the
next month. Also, Cboe has a similar
automatic renewal process for its
Appointed OFP and Appointed MarketMaker Program.7 The Exchange believes
that this amendment will streamline the
workflow for Participants by not
requiring Participants to renew each
year to continue the affiliated
relationship.
The Exchange’s proposal to amend
the way Exchange Participants indicate
their participation in the Affiliated
Entity Program is equitable and not
unfairly discriminatory. Today, any
Participant may participate in the
Affiliated Entity Program. The proposed
changes would impact all Participants
that voluntarily elect to participate in
the Affiliated Entity Program in a
uniform manner.
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 not
necessary or appropriate in furtherance
of the purposes of the Act.
Inter-Market Competition
The proposal does not impose an
undue burden on inter-market
competition. Cboe has a similar
automatic renewal process for its
Appointed OFP and Appointed Market-
khammond on DSKJM1Z7X2PROD with NOTICES
7 See
Cboe’s Fees Schedule at footnote 23 ‘‘A
Market-Maker may designate an Order Flow
Provider (‘‘OFP’’) as its ‘‘Appointed OFP’’ and an
OFP may designate a Market-Maker to be its
‘‘Appointed Market-Maker’’ for purposes of
qualifying for credits under AVP. In order to
effectuate the appointment, the parties would need
to submit the Appointed Affiliate Form to the
Exchange by 3:00 p.m. CST on the first business day
of the month in order to be eligible to qualify for
credits under AVP for that month. The Exchange
will recognize only one such designation for each
party once every calendar month, which
designation will automatically renew each month
until or unless the Exchange receives an email from
either party indicating that the appointment has
been terminated. A Market-Maker that has both an
Affiliate OFP and Appointed OFP will only qualify
based upon the volume of its Appointed OFP. The
volume of an OFP that has both an Affiliate MarketMaker and Appointed Market-Maker will only
count towards qualifying the Appointed MarketMaker. Volume executed in open outcry is not
eligible to receive a credit under AVP.’’
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16:50 Dec 10, 2021
Jkt 256001
Maker Program 8 as proposed herein for
the Affiliated Entity Program.
Intra-Market Competition
The Exchange’s proposal to amend
the way Exchange Participants indicate
their participation in the Affiliated
Entity Program does not impose an
undue burden on competition. Today,
any Participant may participate in an
Affiliated Entity relationship. The
proposed changes would impact all
Participants that voluntarily elect to
participate in the Affiliated Entity
Program in a uniform manner.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or 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.9
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2021–095 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–2021–095. 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 (https://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–NASDAQ–2021–095, and
should be submitted on or before
January 3, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–26858 Filed 12–10–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93727; File No. SR–MEMX–
2021–10]
Self-Regulatory Organizations; MEMX
LLC; Order Instituting Proceedings To
Determine Whether To Approve or
Disapprove a Proposed Rule Change
To Establish a Retail Midpoint Liquidity
Program
December 7, 2021.
I. Introduction
On August 18, 2021, MEMX LLC
(‘‘MEMX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
8 Id.
9 15
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
Frm 00061
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10 17
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CFR 200.30–3(a)(12).
13DEN1
]]>Agencies
[Federal Register Volume 86, Number 236 (Monday, December 13, 2021)]
[Notices]
[Pages 70872-70874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26858]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93728; File No. SR-NASDAQ-2021-095]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Pricing Schedule at Options 7, Section 1, General Provisions
December 7, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\
[[Page 70873]]
notice is hereby given that on December 1, 2021, The Nasdaq Stock
Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and
Exchange Commission (``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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend The Nasdaq Options Market LLC's
(``NOM'') Pricing Schedule at Options 7, Section 1, General Provisions.
While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments become operative on December 1,
2021.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/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
NOM proposes to amend its Pricing Schedule at Options 7, Section 1,
General Provisions. Specifically, NOM proposes to amend the way an
Exchange Participant indicates its participation in the Affiliated
Entity Program. Specifically, the Exchange proposes to amend the
description of ``Affiliated Entity'' within Options 7, Section 1,
General Provisions. Currently, the term ``Affiliated Entity'' is
described as,
a relationship between an Appointed MM and an Appointed OFP for
purposes of aggregating eligible volume for pricing in Options 7,
Sections 2(1) and 2(6) for which a volume threshold or volume
percentage is required to qualify for higher rebates or lower fees.
NOM Market Makers and OFPs are required to send an email to the
Exchange to appoint their counterpart at least 3 business days prior
to the last day of the month to qualify for the next month. The
Exchange will acknowledge receipt of the emails and specify the date
the Affiliated Entity is eligible for applicable pricing in Options
7, Sections 2(1) and 2(6). Each Affiliated Entity relationship will
commence on the 1st of a month and may not be terminated prior to
the end of any month. An Affiliated Entity Relationship will
terminate after a one (1) year period, unless either party
terminates earlier in writing by sending an email to the Exchange at
least 3 business days prior to the last day of the month to
terminate for the next month. Affiliated Entity relationships must
be renewed annually. Participants under Common Ownership may not
qualify as a counterparty comprising an Affiliated Entity. Each
Participant may qualify for only one (1) Affiliated Entity
relationship at any given time.
Today, Participants are required to annually renew their Affiliate
Entity relationship at the end of one year if they desire to continue
the relationship. The parties must both send an email to the Exchange
to avoid termination of the relationship, provided the relationship was
not terminated earlier in the year. The Exchange believes that this
process is burdensome for Participants that desire to remain in the
program. The consequence of not renewing is termination. The Exchange
desires to remove the administrative burden associated with the
requirement to annually renew and instead provide that the Affiliated
Entity relationship will automatically renew each month, unless
otherwise terminated. The proposed new rule text would provide,
The term ``Affiliated Entity'' is a relationship between an
Appointed MM and an Appointed OFP for purposes of aggregating
eligible volume for pricing in Options 7, Sections 2(1) and 2(6) for
which a volume threshold or volume percentage is required to qualify
for higher rebates or lower fees. NOM Market Makers and OFPs are
required to send an email to the Exchange to appoint their
counterpart at least 3 business days prior to the last day of the
month to qualify for the next month. The Exchange will acknowledge
receipt of the emails and specify the date the Affiliated Entity is
eligible for applicable pricing in Options 7, Sections 2(1) and
2(6). Each Affiliated Entity relationship will commence on the 1st
of a month and may not be terminated prior to the end of any month.
An Affiliated Entity Relationship will automatically renew each
month until or unless either party terminates earlier in writing by
sending an email to the Exchange at least 3 business days prior to
the last day of the month to terminate for the next month.
Participants under Common Ownership may not qualify as a
counterparty comprising an Affiliated Entity. Each Participant may
qualify for only one (1) Affiliated Entity relationship at any given
time.
As is the case today, parties to the Affiliated Entity relationship
may decide to terminate the relationship during any month by sending an
email to the Exchange at least 3 business days prior to the last day of
the month to terminate for the next month. Cboe Exchange, Inc.
(``Cboe'') has a similar automatic renewal process for its Appointed
OFP and Appointed Market-Maker Program.\4\ The Exchange believes that
this amendment will streamline the workflow for Participants by not
requiring Participants to renew each year to continue the affiliated
relationship.
---------------------------------------------------------------------------
\4\ See Cboe's Fees Schedule at footnote 23 ``A Market-Maker may
designate an Order Flow Provider (``OFP'') as its ``Appointed OFP''
and an OFP may designate a Market-Maker to be its ``Appointed
Market-Maker'' for purposes of qualifying for credits under AVP. In
order to effectuate the appointment, the parties would need to
submit the Appointed Affiliate Form to the Exchange by 3:00 p.m. CST
on the first business day of the month in order to be eligible to
qualify for credits under AVP for that month. The Exchange will
recognize only one such designation for each party once every
calendar month, which designation will automatically renew each
month until or unless the Exchange receives an email from either
party indicating that the appointment has been terminated. A Market-
Maker that has both an Affiliate OFP and Appointed OFP will only
qualify based upon the volume of its Appointed OFP. The volume of an
OFP that has both an Affiliate Market-Maker and Appointed Market-
Maker will only count towards qualifying the Appointed Market-Maker.
Volume executed in open outcry is not eligible to receive a credit
under AVP.''
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility,
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange's proposal to amend the way Exchange Participants
indicate their participation in the Affiliated Entity Program is
reasonable. Today, Participants are required to annually renew their
Affiliated Entity relationship at the end of one year if they desire to
continue the relationship. The parties must both send an email to the
Exchange to avoid termination of the relationship, provided the
relationship was not terminated earlier in the year. The Exchange
believes that this process is burdensome for Participants that desire
to remain in the program. The consequence of not renewing is
termination of their participation in the
[[Page 70874]]
program. The Exchange desires to remove the administrative burden
associated with the requirement to annually renew and instead provide
that the Affiliated Entity relationship will automatically renew each
month, unless otherwise terminated. As is the case today, parties to
the Affiliated Entity relationship may decide to terminate the
relationship during any month by sending an email to the Exchange at
least 3 business days prior to the last day of the month to terminate
for the next month. Also, Cboe has a similar automatic renewal process
for its Appointed OFP and Appointed Market-Maker Program.\7\ The
Exchange believes that this amendment will streamline the workflow for
Participants by not requiring Participants to renew each year to
continue the affiliated relationship.
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\7\ See Cboe's Fees Schedule at footnote 23 ``A Market-Maker may
designate an Order Flow Provider (``OFP'') as its ``Appointed OFP''
and an OFP may designate a Market-Maker to be its ``Appointed
Market-Maker'' for purposes of qualifying for credits under AVP. In
order to effectuate the appointment, the parties would need to
submit the Appointed Affiliate Form to the Exchange by 3:00 p.m. CST
on the first business day of the month in order to be eligible to
qualify for credits under AVP for that month. The Exchange will
recognize only one such designation for each party once every
calendar month, which designation will automatically renew each
month until or unless the Exchange receives an email from either
party indicating that the appointment has been terminated. A Market-
Maker that has both an Affiliate OFP and Appointed OFP will only
qualify based upon the volume of its Appointed OFP. The volume of an
OFP that has both an Affiliate Market-Maker and Appointed Market-
Maker will only count towards qualifying the Appointed Market-Maker.
Volume executed in open outcry is not eligible to receive a credit
under AVP.''
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The Exchange's proposal to amend the way Exchange Participants
indicate their participation in the Affiliated Entity Program is
equitable and not unfairly discriminatory. Today, any Participant may
participate in the Affiliated Entity Program. The proposed changes
would impact all Participants that voluntarily elect to participate in
the Affiliated Entity Program in a uniform manner.
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 not necessary or appropriate in
furtherance of the purposes of the Act.
Inter-Market Competition
The proposal does not impose an undue burden on inter-market
competition. Cboe has a similar automatic renewal process for its
Appointed OFP and Appointed Market-Maker Program \8\ as proposed herein
for the Affiliated Entity Program.
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\8\ Id.
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Intra-Market Competition
The Exchange's proposal to amend the way Exchange Participants
indicate their participation in the Affiliated Entity Program does not
impose an undue burden on competition. Today, any Participant may
participate in an Affiliated Entity relationship. The proposed changes
would impact all Participants that voluntarily elect to participate in
the Affiliated Entity Program in a uniform manner.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or 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.\9\
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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.
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NASDAQ-2021-095 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-2021-095. 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 (https://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-NASDAQ-2021-095, and should be submitted
on or before January 3, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26858 Filed 12-10-21; 8:45 am]
BILLING CODE 8011-01-P
