Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fees Schedule To Adopt Global Trading Hours XSP Lead Market-Makers Incentive Programs, 78150-78153 [2022-27656]
Download as PDF
<![CDATA[
78150
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
and market participants on the lowest
and highest price outside of the
disclosed price range at which the
Direct Listing Auction can occur
consistent with the protection of
investors and the public interest under
Section 6(b)(5) of the Exchange Act.
IV. Conclusion
For the foregoing reasons, the
Commission finds that the proposed
rule change, as modified by Amendment
No. 2, is consistent with the Exchange
Act and the rules and regulations
thereunder applicable to a national
securities exchange.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,117
that the proposed rule change (SR–
NYSE–2022–14), as modified by
Amendment No. 2 thereto, be, and it
hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.118
Sherry R. Haywood,
Assistant Secretary.
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to update
its Fees Schedule. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
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
[FR Doc. 2022–27659 Filed 12–20–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96510; File No. SR–CBOE–
2022–061]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the
Exchange’s Fees Schedule To Adopt
Global Trading Hours XSP Lead
Market-Makers Incentive Programs
December 15, 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 December
12, 2022, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
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 Exchange proposes to amend its
Fees Schedule to adopt Global Trading
Hours (‘‘GTH’’) XSP Lead Market-
Expiring
Premium level
Near term
7 days or less
Width
I
Mid term
8 days to 60 days
Size
Width
I
Makers (‘‘LMMs’’) Incentive Programs
(collectively, the ‘‘Programs’’), effective
December 12, 2022. The Exchange
anticipates listing XSP options for
trading during the GTH session,
effective trade date December 12, 2022.
In connection with the proposed launch
of XSP options during GTH, the
Exchange proposes to adopt financial
programs for LMMs appointed to the
Programs during GTH. Particularly, the
Exchange proposes to adopt (i) a ‘‘GTH1
XSP LMM Incentive Program’’ (‘‘GTH1
Program’’) under which LMMs
appointed to the proposed program
would have to provide continuous
electronic quotes during GTH from 7:15
p.m. CST to 2:00 a.m. CST (‘‘GTH1’’)
that meet or exceed the proposed
quoting standards under the program (as
described in further detail below) and
(ii) a ‘‘GTH2 XSP LMM Incentive
Program’’ (‘‘GTH2 Program’’) under
which LMMs appointed to the proposed
program would have to provide
continuous electronic quotes during
GTH from 2:00 a.m. CST to 9:15 a.m.
[sic] CST (‘‘GTH2’’). The Exchange
similarly maintains separate LMM
Incentive Programs for the GTH1 and
GTH2 trading sessions in the two other
products that are currently listed during
GTH.3
As proposed, the GTH1 Program
provides that if the LMM appointed to
the Program provides continuous
electronic quotes during GTH1 that
meet or exceed the proposed heightened
quoting standards (below) in at least
85% of the series 90% of the time in a
given month, the LMM will receive (i)
a payment for that month in the amount
of $10,000 and (ii) a credit of $0.03 per
contract applied to all XSP contracts
executed in a Market-Maker capacity
which provide liquidity in the Simple
Book during Regular Trading Hours
(‘‘RTH’’) (or pro-rated amounts if an
appointment begins after the first
trading day of the month or ends prior
to the last trading day of the month).4
Long term
61 days to 270 days
Size
Width
I
271 days to 500 days
Size
Width
I
Size
lotter on DSK11XQN23PROD with NOTICES1
VIX Value at Prior Close <20
$0.01–$1.00 ......................
$1.01–$5.00 ......................
$5.01–$8.00 ......................
$8.01–$12.00 ....................
$12.01–$20.00 ..................
$0.04
0.06
0.10
0.40
0.80
117 Id.
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
19:56 Dec 20, 2022
$0.05
0.09
0.16
0.70
1.20
10
10
10
5
5
3 See Cboe Options Fees Schedule, GTH1 VIX/
VIXW LMM Incentive Program, GTH2 VIX/VIXW
LMM Incentive Program, GTH1 SPX/SPXW LMM
Incentive Program and GTH2 SPX/SPXW LMM
Incentive Program.
118 17
VerDate Sep<11>2014
10
10
10
5
5
Jkt 259001
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
$0.07
0.12
0.25
1.00
1.60
5
5
5
5
5
$0.15
0.20
0.40
1.25
2.00
4 For the month of December 2022, the Exchange
proposes to pro-rate the incentives and apply the
heightened quoting standard from trade date
December 12 to December 30, in light of the midmonth launch of XSP options during the GTH
session.
E:\FR\FM\21DEN1.SGM
21DEN1
5
5
5
5
5
78151
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
Expiring
Premium level
Near term
7 days or less
Width
>20.00 ...............................
Mid term
8 days to 60 days
Size
Width
1.60
5
Long term
61 days to 270 days
Size
Width
2.00
5
271 days to 500 days
Size
2.40
Width
5
I
I
Size
3.20
I
5
VIX Value at Prior Close from 20–30
$0.01–$1.00 ......................
$1.01–$5.00 ......................
$5.01–$8.00 ......................
$8.01–$12.00 ....................
$12.01–$20.00 ..................
>20.00 ...............................
0.06
0.09
0.14
0.60
1.00
2.00
10
10
10
5
5
5
0.07
0.11
0.18
0.80
1.30
2.40
10
10
10
5
5
5
0.09
0.14
0.30
1.10
1.80
2.80
5
5
5
5
5
5
I
I
0.17
0.22
0.45
1.35
2.20
3.60
I
5
5
5
5
5
5
VIX Value at Prior Close >30
lotter on DSK11XQN23PROD with NOTICES1
$0.01–$1.00 ......................
$1.01–$5.00 ......................
$5.01–$8.00 ......................
$8.01–$12.00 ....................
$12.01–$20.00 ..................
>20.00 ...............................
0.07
0.10
0.14
0.60
1.20
2.40
10
10
10
5
5
5
As proposed, the GTH2 Program will
provide that if an LMM appointed to the
Program provides continuous electronic
quotes during GTH2 that meet or exceed
the proposed heightened quoting
standards set forth above (the same as
GTH1) in at least 85% of the series 90%
of the time in a given month, the LMM
will receive a payment for that month in
the amount of $20,000 (or pro-rated
amount if an appointment begins after
the first trading day of the month or
ends prior to the last trading day of the
month).5
Meeting or exceeding the heightened
quoting standards in XSP, as proposed,
to receive the proposed compensation
payment(s) is optional for any LMM
appointed to either program. The
Exchange may consider other
exceptions to this quoting standard
based on demonstrated legal or
regulatory requirements or other
mitigating circumstances. In calculating
whether an LMM met the heightened
quoting standard each month, the
Exchange will exclude from the
calculation in that month the business
day in which the LMM missed meeting
or exceeding the heightened quoting
standard in the highest number of
series. The heightened quoting
requirements offered by the Programs
are designed to incentivize LMMs
appointed to the Program to provide
significant liquidity in XSP options
during the GTH session upon their
listing and trading on the Exchange
during GTH, which, in turn, would
provide greater trading opportunities,
added market transparency and
5 For the month of December 2022, the Exchange
proposes to pro-rate the incentives and apply the
heightened quoting standard from trade date
December 12 to December 30, in light of the midmonth launch of XSP options during the GTH
session.
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
0.09
0.14
0.20
0.90
1.50
2.80
10
10
10
5
5
5
enhanced price discovery for all market
participants in XSP.
In connection with the launch of XSP
during GTH, the Exchange also proposes
to update Footnote 37 which footnote
provides a description of GTH and lists
the applicable products available for
trading during GTH (currently only VIX
and SPX/SPX). Particularly, the
Exchange proposes to add a reference to
XSP in Footnote 37 to reflect its
availability for trading during GTH. The
Exchange notes that on December 12,
2022, it also anticipates launching XSP
during the Curb Trading Hours session,
which session commences at 3:15PM CT
and terminates at 4:00PM CT. Footnote
42 of the Fees Schedule similarly
describes the Curb Trading Hours
session and lists the available products
for trading (currently also only VIX and
SPX/SPXW) and the Exchange therefore
proposes to update the footnote to add
a reference to XSP. The exchange notes
that all fees currently applicable to XSP
during the RTH session will continue to
apply to XSP during the GTH and Curb
Trading Hours sessions.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,6
in general, and furthers the objectives of
Section 6(b)(4),7 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
issuers and other persons using its
facilities. The Exchange also believes
that the proposed rule change is
consistent with the objectives of Section
6(b)(5) 8 requirements that the rules of
6 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
8 15 U.S.C. 78f(b)(5).
7 15
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
0.11
0.18
0.35
1.20
2.00
3.20
5
5
5
5
5
5
I
I
0.20
0.27
0.50
1.50
2.40
4.00
I
5
5
5
5
5
5
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest, and,
particularly, is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes the proposed
XSP GTH LMM Incentive Programs are
reasonable, equitable and not unfairly
discriminatory. Particularly, the
proposed Programs are reasonable
financial incentive programs because
the proposed heightened quoting
standards and rebate amounts for
meeting the heightened quoting
standards in XSP series during GTH1
and GTH2, respectively are reasonably
designed to incentivize LMMs
appointed to the Programs to meet the
proposed heightened quoting standards
during GTH for XSP, thereby providing
liquid and active markets, which
facilitates tighter spreads, increased
trading opportunities, and overall
enhanced market quality to the benefit
of all market participants, particularly
in a newly listed and traded product
during the GTH session on the
Exchange.
The Exchange believes that the
proposed heightened quoting standards
are reasonable because they are similar
to the detail and format (VIX Index
value indicator, corresponding
premiums, quote widths, and sizes) of
the quoting standards currently in place
E:\FR\FM\21DEN1.SGM
21DEN1
lotter on DSK11XQN23PROD with NOTICES1
78152
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
for LMM Incentive Programs for other
proprietary Exchange products during
GTH.9 The Exchange also believes that
proposed heightened quoting
requirements are reasonably tailored to
reflect market characteristics of XSP.
For example, the Exchange believes the
generally smaller premium levels,
widths and quote sizes appropriately
reflect the lower-priced and smaller
nationalize sized XSP product (XSP
options are 1/10th the size of SPX
options). Indeed, the Exchange believes
the proposed finer premiums, smaller
quote widths and smaller sizes
(comparatively) in the proposed
heightened quoting standards for the
XSP GTH LMM Incentive Programs
reasonably reflect what the Exchanges
believes are typical market
characteristics in XSP options, given
their smaller notional value.
The Exchange further believes the
proposed heighten quoting requirements
are also reasonably tailored to reflect
then-current market conditions and
market characteristics, as the proposed
quoting standards that are applicable
depend on the VIX Index value at the
prior market close (i.e., at the close of
the preceding RTH session). Spreads in
SPX-based options, including XSP,
generally widen when the market
experiences higher volatility (i.e., the
VIX Index level is higher in value).
Therefore, to encourage LMMs to meet
the proposed quoting standards
regardless of market volatility, the
proposed rule change adopts generally
wider widths where the market may be
experiencing higher volatility (i.e.,
when the value of the VIX Index in the
proposed VIX value categories becomes
relatively higher compared to the
closing index value from the preceding
trading session). The Exchange notes
that the quoting standards currently in
place under the GTH1 and GTH2 VIX/
VIXW and SPX/SPXW LMM Incentive
Programs are tailored in a similar
manner.
The Exchange also believes that the
proposed incentive payments for
appointed LMMs that meet the
proposed heightened quoting standards
in XSP in a month is reasonable and
equitable as they are comparable to the
rebates offered for other LMM Incentive
Programs for other proprietary products.
For example, the GTH1 and GTH2 LMM
Incentive Programs for SPX/SPXW and
for VIX/VIXW offer compensation
payments between $15,000 and $35,000
per month, in which an appointed LMM
9 See Cboe Options Fees Schedule, ‘‘GTH1 VIX/
VIXW LMM Incentive Program’’, ‘‘GTH2 VIX/VIXW
LMM Incentive Program’’, ‘‘GTH1 SPX/SPXW LMM
Incentive Program’’, and ‘‘GTH2 SPX/SPXW LMM
Incentive Program’’.
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
meets the given quoting standards.10
The GTH1 and GTH2 VIX/VIXW LMM
Incentive Programs also provides an
additional per contract credit for
Market-Maker VIX/VIXW orders
executed in RTH.11 Additionally, the
Exchange believes the proposed
incentives are reasonably designed to
continue to incentivize appointed
LMMs to meet the proposed quoting
standards for XSP, thereby providing
liquid and active markets, which
facilitates tighter spreads, increased
trading opportunities, and overall
enhanced market quality to the benefit
of all market participants.
Finally, the Exchange believes it is
equitable and not unfairly
discriminatory to offer the financial
incentive to LMMs appointed to the
XSP GTH LMM Incentive Programs
because it will benefit all market
participants trading in XSP during GTH
by encouraging the appointed LMMs to
satisfy the heightened quoting
standards, which incentivizes
continuous increased liquidity and
thereby may provide more trading
opportunities and tighter spreads.
Indeed, the Exchange notes that these
LMMs serve a crucial role in providing
quotes and the opportunity for market
participants to trade XSP, which can
lead to increased volume, providing for
robust markets. The Exchange
ultimately proposes to offer the XSP
GTH LMM Incentive Programs to
sufficiently incentivize the appointed
LMMs to provide key liquidity and
active markets in XSP options which
will be newly listed and traded during
the GTH session to encourage liquidity,
thereby protecting investors and the
public interest. The Exchange also notes
that an LMM appointed to the Programs
may undertake added costs each month
to satisfy that heightened quoting
standards (e.g., having to purchase
additional logical connectivity). The
Exchange believes the proposed
program is equitable and not unfairly
discriminatory because similar
programs currently exist for LMMs
appointed to programs in other
proprietary products,12 and the
proposed program will equally apply to
any TPH that is appointed as an LMM
to the GTH1 or GTH2 LMM Incentive
Programs. Additionally, if an appointed
LMM does not satisfy the heightened
quoting standard in XSP for any given
month, then it simply will not receive
the offered payments for that month.
id.
Cboe Options Fees Schedule, ‘‘GTH2 VIX/
VIXW LMM Incentive Program’’.
12 See supra note 11.
Lastly, the Exchange believes
updating Footnotes 37 and 42 of the
Fees Schedule provides clarity in the
fees schedule as to the products
available during the GTH and Curb
Trading Hours sessions, alleviating
potential confusion, thereby removing
impediments to and perfecting the
mechanism of a free and open market
and a national market system, and, in
general, protecting investors and the
public interest.
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 intramarket or
intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Rather, as
discussed above, the Exchange believes
that the proposed change would
encourage the submission of additional
liquidity to a public exchange, thereby
promoting market depth, price
discovery and transparency and
enhancing order execution and price
improvement opportunities for all
TPHs. As a result, the Exchange believes
that the proposed change 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.’’ 13
The Exchange does not believe that
the proposed rule change will impose
any burden on intramarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
Indeed, the proposed GTH1 XSP and
GTH2 XSP LMM Incentive Programs
will apply to all LMMs appointed to
each program in a uniform manner. To
the extent the LMMs appointed to one
of the proposed programs receive a
benefit that other market participants do
not, as stated, these LMMs in their role
as Market-Makers on the Exchange have
different obligations and are held to
different standards. For example,
Market-Makers play a crucial role in
providing active and liquid markets in
their appointed products, thereby
providing a robust market which
benefits all market participants. Such
Market-Makers also have obligations
and regulatory requirements that other
participants do not have. An LMM
appointed to a program may undertake
added costs each month that it needs to
satisfy the quoting standards (e.g.,
having to purchase additional logical
10 See
11 See
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
13 Securities Exchange Act Release No. 51808, 70
FR 37495, 37498–99 (June 29, 2005) (S7–10–04)
(Final Rule).
E:\FR\FM\21DEN1.SGM
21DEN1
lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
connectivity). The programs are
ultimately designed to attract additional
order flow in XSP options to the
Exchange during GTH, wherein greater
liquidity will benefit all market
participants by providing more trading
opportunities, tighter spreads, and
added market transparency and price
discovery, and signals to other market
participants to direct their order flow to
those markets, thereby contributing to
robust levels of liquidity during new
trading hours. The Exchange also does
not believe that the proposed changes
will impose any burden on intermarket
competition that is not necessary or
appropriate in furtherance of the Act
because the proposed programs are
applicable to transactions in a product
exclusively listed on the Exchange.
Additionally, the Exchange notes that it
operates in a highly competitive market.
TPHs have numerous alternative venues
that they may participate on and direct
their order flow, including 15 other
options exchanges, as well as offexchange venues, where competitive
products are available for trading. Based
on publicly available information, no
single options exchange has more than
18% of the market share.14 Therefore,
no exchange possesses significant
pricing power in the execution of option
order flow. Indeed, participants can
readily choose to send their orders to
other exchange, and, additionally offexchange venues, if they deem fee levels
at those other venues to be more
favorable. 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.’’ 15 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 broker14 See Cboe Global Markets U.S. Options Market
Volume Summary, Month-to-Date (December 9,
2022), available at https://markets.cboe.com/us/
options/market_statistics/.
15 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
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’. . . .’’.16 Accordingly, the
Exchange does not believe its proposed
fee change imposes 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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
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 17 and paragraph (f) of Rule
19b–4 18 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2022–061 on the subject line.
16 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)).
17 15 U.S.C. 78s(b)(3)(A).
18 17 CFR 240.19b–4(f).
PO 00000
Frm 00112
Fmt 4703
Sfmt 9990
78153
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–2022–061. 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–CBOE–2022–061 and
should be submitted on or before
January 11, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–27656 Filed 12–20–22; 8:45 am]
BILLING CODE 8011–01–P
19 17
E:\FR\FM\21DEN1.SGM
CFR 200.30–3(a)(12).
21DEN1
]]>Agencies
[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Notices]
[Pages 78150-78153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27656]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96510; File No. SR-CBOE-2022-061]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Exchange's Fees Schedule To Adopt Global Trading Hours XSP Lead
Market-Makers Incentive Programs
December 15, 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 December 12, 2022, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') 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
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to update its Fees Schedule. The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, 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 Exchange proposes to amend its Fees Schedule to adopt Global
Trading Hours (``GTH'') XSP Lead Market-Makers (``LMMs'') Incentive
Programs (collectively, the ``Programs''), effective December 12, 2022.
The Exchange anticipates listing XSP options for trading during the GTH
session, effective trade date December 12, 2022. In connection with the
proposed launch of XSP options during GTH, the Exchange proposes to
adopt financial programs for LMMs appointed to the Programs during GTH.
Particularly, the Exchange proposes to adopt (i) a ``GTH1 XSP LMM
Incentive Program'' (``GTH1 Program'') under which LMMs appointed to
the proposed program would have to provide continuous electronic quotes
during GTH from 7:15 p.m. CST to 2:00 a.m. CST (``GTH1'') that meet or
exceed the proposed quoting standards under the program (as described
in further detail below) and (ii) a ``GTH2 XSP LMM Incentive Program''
(``GTH2 Program'') under which LMMs appointed to the proposed program
would have to provide continuous electronic quotes during GTH from 2:00
a.m. CST to 9:15 a.m. [sic] CST (``GTH2''). The Exchange similarly
maintains separate LMM Incentive Programs for the GTH1 and GTH2 trading
sessions in the two other products that are currently listed during
GTH.\3\
---------------------------------------------------------------------------
\3\ See Cboe Options Fees Schedule, GTH1 VIX/VIXW LMM Incentive
Program, GTH2 VIX/VIXW LMM Incentive Program, GTH1 SPX/SPXW LMM
Incentive Program and GTH2 SPX/SPXW LMM Incentive Program.
---------------------------------------------------------------------------
As proposed, the GTH1 Program provides that if the LMM appointed to
the Program provides continuous electronic quotes during GTH1 that meet
or exceed the proposed heightened quoting standards (below) in at least
85% of the series 90% of the time in a given month, the LMM will
receive (i) a payment for that month in the amount of $10,000 and (ii)
a credit of $0.03 per contract applied to all XSP contracts executed in
a Market-Maker capacity which provide liquidity in the Simple Book
during Regular Trading Hours (``RTH'') (or pro-rated amounts if an
appointment begins after the first trading day of the month or ends
prior to the last trading day of the month).\4\
---------------------------------------------------------------------------
\4\ For the month of December 2022, the Exchange proposes to
pro-rate the incentives and apply the heightened quoting standard
from trade date December 12 to December 30, in light of the mid-
month launch of XSP options during the GTH session.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Expiring Near term Mid term Long term
-------------------------------------------------------------------------------------------------------------------------------
Premium level 7 days or less 8 days to 60 days 61 days to 270 days 271 days to 500 days
-------------------------------------------------------------------------------------------------------------------------------
Width Size Width Size Width Size Width Size
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close <20
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
$0.01-$1.00..................................................... $0.04 10 $0.05 10 $0.07 5 $0.15 5
$1.01-$5.00..................................................... 0.06 10 0.09 10 0.12 5 0.20 5
$5.01-$8.00..................................................... 0.10 10 0.16 10 0.25 5 0.40 5
$8.01-$12.00.................................................... 0.40 5 0.70 5 1.00 5 1.25 5
$12.01-$20.00................................................... 0.80 5 1.20 5 1.60 5 2.00 5
[[Page 78151]]
>20.00.......................................................... 1.60 5 2.00 5 2.40 5 3.20 5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close from 20-30
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
$0.01-$1.00..................................................... 0.06 10 0.07 10 0.09 5 0.17 5
$1.01-$5.00..................................................... 0.09 10 0.11 10 0.14 5 0.22 5
$5.01-$8.00..................................................... 0.14 10 0.18 10 0.30 5 0.45 5
$8.01-$12.00.................................................... 0.60 5 0.80 5 1.10 5 1.35 5
$12.01-$20.00................................................... 1.00 5 1.30 5 1.80 5 2.20 5
>20.00.......................................................... 2.00 5 2.40 5 2.80 5 3.60 5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
VIX Value at Prior Close 30
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
$0.01-$1.00..................................................... 0.07 10 0.09 10 0.11 5 0.20 5
$1.01-$5.00..................................................... 0.10 10 0.14 10 0.18 5 0.27 5
$5.01-$8.00..................................................... 0.14 10 0.20 10 0.35 5 0.50 5
$8.01-$12.00.................................................... 0.60 5 0.90 5 1.20 5 1.50 5
$12.01-$20.00................................................... 1.20 5 1.50 5 2.00 5 2.40 5
>20.00.......................................................... 2.40 5 2.80 5 3.20 5 4.00 5
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As proposed, the GTH2 Program will provide that if an LMM appointed
to the Program provides continuous electronic quotes during GTH2 that
meet or exceed the proposed heightened quoting standards set forth
above (the same as GTH1) in at least 85% of the series 90% of the time
in a given month, the LMM will receive a payment for that month in the
amount of $20,000 (or pro-rated amount if an appointment begins after
the first trading day of the month or ends prior to the last trading
day of the month).\5\
---------------------------------------------------------------------------
\5\ For the month of December 2022, the Exchange proposes to
pro-rate the incentives and apply the heightened quoting standard
from trade date December 12 to December 30, in light of the mid-
month launch of XSP options during the GTH session.
---------------------------------------------------------------------------
Meeting or exceeding the heightened quoting standards in XSP, as
proposed, to receive the proposed compensation payment(s) is optional
for any LMM appointed to either program. The Exchange may consider
other exceptions to this quoting standard based on demonstrated legal
or regulatory requirements or other mitigating circumstances. In
calculating whether an LMM met the heightened quoting standard each
month, the Exchange will exclude from the calculation in that month the
business day in which the LMM missed meeting or exceeding the
heightened quoting standard in the highest number of series. The
heightened quoting requirements offered by the Programs are designed to
incentivize LMMs appointed to the Program to provide significant
liquidity in XSP options during the GTH session upon their listing and
trading on the Exchange during GTH, which, in turn, would provide
greater trading opportunities, added market transparency and enhanced
price discovery for all market participants in XSP.
In connection with the launch of XSP during GTH, the Exchange also
proposes to update Footnote 37 which footnote provides a description of
GTH and lists the applicable products available for trading during GTH
(currently only VIX and SPX/SPX). Particularly, the Exchange proposes
to add a reference to XSP in Footnote 37 to reflect its availability
for trading during GTH. The Exchange notes that on December 12, 2022,
it also anticipates launching XSP during the Curb Trading Hours
session, which session commences at 3:15PM CT and terminates at 4:00PM
CT. Footnote 42 of the Fees Schedule similarly describes the Curb
Trading Hours session and lists the available products for trading
(currently also only VIX and SPX/SPXW) and the Exchange therefore
proposes to update the footnote to add a reference to XSP. The exchange
notes that all fees currently applicable to XSP during the RTH session
will continue to apply to XSP during the GTH and Curb Trading Hours
sessions.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\6\ in general, and
furthers the objectives of Section 6(b)(4),\7\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and issuers and other persons
using its facilities. The Exchange also believes that the proposed rule
change is consistent with the objectives of Section 6(b)(5) \8\
requirements that the rules of an exchange be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest, and, particularly, is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposed XSP GTH LMM Incentive Programs
are reasonable, equitable and not unfairly discriminatory.
Particularly, the proposed Programs are reasonable financial incentive
programs because the proposed heightened quoting standards and rebate
amounts for meeting the heightened quoting standards in XSP series
during GTH1 and GTH2, respectively are reasonably designed to
incentivize LMMs appointed to the Programs to meet the proposed
heightened quoting standards during GTH for XSP, thereby providing
liquid and active markets, which facilitates tighter spreads, increased
trading opportunities, and overall enhanced market quality to the
benefit of all market participants, particularly in a newly listed and
traded product during the GTH session on the Exchange.
The Exchange believes that the proposed heightened quoting
standards are reasonable because they are similar to the detail and
format (VIX Index value indicator, corresponding premiums, quote
widths, and sizes) of the quoting standards currently in place
[[Page 78152]]
for LMM Incentive Programs for other proprietary Exchange products
during GTH.\9\ The Exchange also believes that proposed heightened
quoting requirements are reasonably tailored to reflect market
characteristics of XSP. For example, the Exchange believes the
generally smaller premium levels, widths and quote sizes appropriately
reflect the lower-priced and smaller nationalize sized XSP product (XSP
options are 1/10th the size of SPX options). Indeed, the Exchange
believes the proposed finer premiums, smaller quote widths and smaller
sizes (comparatively) in the proposed heightened quoting standards for
the XSP GTH LMM Incentive Programs reasonably reflect what the
Exchanges believes are typical market characteristics in XSP options,
given their smaller notional value.
---------------------------------------------------------------------------
\9\ See Cboe Options Fees Schedule, ``GTH1 VIX/VIXW LMM
Incentive Program'', ``GTH2 VIX/VIXW LMM Incentive Program'', ``GTH1
SPX/SPXW LMM Incentive Program'', and ``GTH2 SPX/SPXW LMM Incentive
Program''.
---------------------------------------------------------------------------
The Exchange further believes the proposed heighten quoting
requirements are also reasonably tailored to reflect then-current
market conditions and market characteristics, as the proposed quoting
standards that are applicable depend on the VIX Index value at the
prior market close (i.e., at the close of the preceding RTH session).
Spreads in SPX-based options, including XSP, generally widen when the
market experiences higher volatility (i.e., the VIX Index level is
higher in value). Therefore, to encourage LMMs to meet the proposed
quoting standards regardless of market volatility, the proposed rule
change adopts generally wider widths where the market may be
experiencing higher volatility (i.e., when the value of the VIX Index
in the proposed VIX value categories becomes relatively higher compared
to the closing index value from the preceding trading session). The
Exchange notes that the quoting standards currently in place under the
GTH1 and GTH2 VIX/VIXW and SPX/SPXW LMM Incentive Programs are tailored
in a similar manner.
The Exchange also believes that the proposed incentive payments for
appointed LMMs that meet the proposed heightened quoting standards in
XSP in a month is reasonable and equitable as they are comparable to
the rebates offered for other LMM Incentive Programs for other
proprietary products. For example, the GTH1 and GTH2 LMM Incentive
Programs for SPX/SPXW and for VIX/VIXW offer compensation payments
between $15,000 and $35,000 per month, in which an appointed LMM meets
the given quoting standards.\10\ The GTH1 and GTH2 VIX/VIXW LMM
Incentive Programs also provides an additional per contract credit for
Market-Maker VIX/VIXW orders executed in RTH.\11\ Additionally, the
Exchange believes the proposed incentives are reasonably designed to
continue to incentivize appointed LMMs to meet the proposed quoting
standards for XSP, thereby providing liquid and active markets, which
facilitates tighter spreads, increased trading opportunities, and
overall enhanced market quality to the benefit of all market
participants.
---------------------------------------------------------------------------
\10\ See id.
\11\ See Cboe Options Fees Schedule, ``GTH2 VIX/VIXW LMM
Incentive Program''.
---------------------------------------------------------------------------
Finally, the Exchange believes it is equitable and not unfairly
discriminatory to offer the financial incentive to LMMs appointed to
the XSP GTH LMM Incentive Programs because it will benefit all market
participants trading in XSP during GTH by encouraging the appointed
LMMs to satisfy the heightened quoting standards, which incentivizes
continuous increased liquidity and thereby may provide more trading
opportunities and tighter spreads. Indeed, the Exchange notes that
these LMMs serve a crucial role in providing quotes and the opportunity
for market participants to trade XSP, which can lead to increased
volume, providing for robust markets. The Exchange ultimately proposes
to offer the XSP GTH LMM Incentive Programs to sufficiently incentivize
the appointed LMMs to provide key liquidity and active markets in XSP
options which will be newly listed and traded during the GTH session to
encourage liquidity, thereby protecting investors and the public
interest. The Exchange also notes that an LMM appointed to the Programs
may undertake added costs each month to satisfy that heightened quoting
standards (e.g., having to purchase additional logical connectivity).
The Exchange believes the proposed program is equitable and not
unfairly discriminatory because similar programs currently exist for
LMMs appointed to programs in other proprietary products,\12\ and the
proposed program will equally apply to any TPH that is appointed as an
LMM to the GTH1 or GTH2 LMM Incentive Programs. Additionally, if an
appointed LMM does not satisfy the heightened quoting standard in XSP
for any given month, then it simply will not receive the offered
payments for that month.
---------------------------------------------------------------------------
\12\ See supra note 11.
---------------------------------------------------------------------------
Lastly, the Exchange believes updating Footnotes 37 and 42 of the
Fees Schedule provides clarity in the fees schedule as to the products
available during the GTH and Curb Trading Hours sessions, alleviating
potential confusion, thereby removing impediments to and perfecting the
mechanism of a free and open market and a national market system, and,
in general, protecting investors and the public interest.
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 intramarket or intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
Rather, as discussed above, the Exchange believes that the proposed
change would encourage the submission of additional liquidity to a
public exchange, thereby promoting market depth, price discovery and
transparency and enhancing order execution and price improvement
opportunities for all TPHs. As a result, the Exchange believes that the
proposed change 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.'' \13\
---------------------------------------------------------------------------
\13\ Securities Exchange Act Release No. 51808, 70 FR 37495,
37498-99 (June 29, 2005) (S7-10-04) (Final Rule).
---------------------------------------------------------------------------
The Exchange does not believe that the proposed rule change will
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Indeed, the
proposed GTH1 XSP and GTH2 XSP LMM Incentive Programs will apply to all
LMMs appointed to each program in a uniform manner. To the extent the
LMMs appointed to one of the proposed programs receive a benefit that
other market participants do not, as stated, these LMMs in their role
as Market-Makers on the Exchange have different obligations and are
held to different standards. For example, Market-Makers play a crucial
role in providing active and liquid markets in their appointed
products, thereby providing a robust market which benefits all market
participants. Such Market-Makers also have obligations and regulatory
requirements that other participants do not have. An LMM appointed to a
program may undertake added costs each month that it needs to satisfy
the quoting standards (e.g., having to purchase additional logical
[[Page 78153]]
connectivity). The programs are ultimately designed to attract
additional order flow in XSP options to the Exchange during GTH,
wherein greater liquidity will benefit all market participants by
providing more trading opportunities, tighter spreads, and added market
transparency and price discovery, and signals to other market
participants to direct their order flow to those markets, thereby
contributing to robust levels of liquidity during new trading hours.
The Exchange also does not believe that the proposed changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the Act because the proposed programs are
applicable to transactions in a product exclusively listed on the
Exchange. Additionally, the Exchange notes that it operates in a highly
competitive market. TPHs have numerous alternative venues that they may
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 18% of the market share.\14\
Therefore, no exchange possesses significant pricing power in the
execution of option order flow. Indeed, participants can readily choose
to send their orders to other exchange, and, additionally off-exchange
venues, if they deem fee levels at those other venues to be more
favorable. 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.'' \15\ 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
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'. . . .''.\16\
Accordingly, the Exchange does not believe its proposed fee change
imposes any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\14\ See Cboe Global Markets U.S. Options Market Volume Summary,
Month-to-Date (December 9, 2022), available at https://markets.cboe.com/us/options/market_statistics/.
\15\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
\16\ 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)).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written 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 \17\ and paragraph (f) of Rule 19b-4 \18\
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.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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-CBOE-2022-061 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-2022-061. 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-CBOE-2022-061 and should be submitted on
or before January 11, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-27656 Filed 12-20-22; 8:45 am]
BILLING CODE 8011-01-P
