[Federal Register Volume 88, Number 247 (Wednesday, December 27, 2023)]
[Notices]
[Pages 89481-89484]
[FR Doc No: 2023-28453]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99211; File No. SR-MEMX-2023-35]

Self-Regulatory Organizations; MEMX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Amend the
Exchange's Short Term Option Series Program

December 20, 2023.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 15, 2023, MEMX LLC (``Exchange'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing with the Commission a proposed rule change
to expand the Exchange's Short Term Option Series Program as set forth
in Rule 19.5, Interpretation and Policy .05, to permit the listing of
two Wednesday expirations for options on United States Oil Fund, LP
(``USO''), United States Natural Gas Fund, LP (``UNG''), SPDR Gold
Shares (``GLD''), iShares Silver Trust (``SLV''), and iShares 20+ Year
Treasury Bond ETF (``TLT'') (collectively ``Exchange Traded Products''
or ``ETPs''). The text of the proposed rule change is provided in
Exhibit 5.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend Rule 19.5,
Interpretation and Policy .05. Specifically, the Exchange proposes to
expand the Short Term Option Series Program to permit the listing of
two Wednesday expirations for options on United States Oil Fund, LP
(``USO''), United States Natural Gas Fund, LP (``UNG''), SPDR Gold
Shares (``GLD''), iShares Silver Trust (``SLV''), and iShares 20+ Year
Treasury Bond ETF (``TLT'') (collectively ``Exchange Traded Products''
or ``ETPs''). This is a competitive filing that is based on a proposal
submitted from Nasdaq ISE, LLC (``Nasdaq ISE'') and recently approved
by the Commission.\3\
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    \3\ See Securities Exchange Act Release No. 98905 (November 13,
2023) (SR-ISE-2023-11) (Order Approving a Proposed Rule Change to
Amend the Short Term Option Series Program to Permit the Listing of
Two Wednesday Expirations for Options on Certain Exchange Traded
Products) (``Nasdaq ISE Approval'').
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    Currently, as set forth in Rule 19.5, Interpretation and Policy
.05, after an option class has been approved for listing and trading on
the Exchange, the Exchange may open for trading on any Thursday or
Friday that is a business day (``Short Term Option Opening Date'')
series of options on that class that expire at the close of business on
each of the next five Fridays that are business days and are not
Fridays on which monthly options series or Quarterly Options Series
expire (``Friday Short Term Option Expiration Dates''). The Exchange
may have no more than a total of five Friday Short Term Option
Expiration Dates (``Short Term Options Weekly Expirations''). If the
Exchange is not open for business on the respective Thursday or Friday,
the Short Term Option Opening Date for Short Term Options Weekly
Expirations will be the first business day immediately prior to that
respective Thursday or Friday. Similarly, if the Exchange is not open
for business on the Friday that the Short Term Options Weekly
Expirations are set to expire, the Short Term Option Expiration Date
for Short Term Options Weekly Expirations will be the first business
day immediately prior to that Friday.
    Additionally, the Exchange may open for trading series of options
on the symbols provided in Table 1 of Rule 19.5, Interpretation and
Policy .05(h) that expire at the close of business on each of the next
two Mondays,

Tuesdays, Wednesdays, and Thursdays, respectively, that are business
days and are not business days in which monthly options series or
Quarterly Options Series expire (``Short Term Option Daily
Expirations''). For those symbols listed in Table 1, the Exchange may
have no more than a total of two Short Term Option Daily Expirations
beyond the current week for each of Monday, Tuesday, Wednesday, and
Thursday expirations at one time.
    At this time, the Exchange proposes to expand the Short Term Option
Daily Expirations to permit the listing and trading of options on USO,
UNG, GLD, SLV, and TLT expiring on Wednesdays. The Exchange proposes to
permit two Short Term Option Expiration Dates beyond the current week
for each Wednesday expiration at one time. In order to effectuate the
proposed changes, the Exchange would add USO, UNG, GLD, SLV, and TLT to
Table 1 of Rule 19.5, Interpretation and Policy .05(h), which specifies
each symbol that qualifies as a Short Term Option Daily Expiration.
    The proposed Wednesday USO, UNG, GLD, SLV, and TLT expirations will
be similar to the current Wednesday QQQ and IWM Short Term Option Daily
Expirations set forth in Rule 19.5, Interpretation and Policy .05,\4\
such that the Exchange may open for trading on any Tuesday or Wednesday
that is a business day (beyond the current week) series of options on
USO, UNG, GLD, SLV, and TLT to expire on any Wednesday of the month
that is a business day and is not a Wednesday in which Quarterly
Options Series expire (``Wednesday USO Expirations,'' ``Wednesday UNG
Expirations,'' ``Wednesday GLD Expirations,'' ``Wednesday SLV
Expirations,'' and ``Wednesday TLT Expirations'') (collectively,
``Wednesday ETP Expirations'').\5\ In the event Short Term Option Daily
Expirations expire on a Wednesday and that Wednesday is the same day
that a Quarterly Options Series expires, the Exchange would skip that
week's listing and instead list the following week; the two weeks would
therefore not be consecutive. Today, Wednesday expirations in QQQ and
IWM similarly skip the weekly listing in the event the weekly listing
expires on the same day in the same class as a Quarterly Options
Series.
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    \4\ The Exchange's rules also provide for Wednesday expirations
in SPY. As of the date of this filing SPY is not listed for trading
on the Exchange.
    \5\ While the relevant rule text in Rule 19.5, Interpretation
and Policy .05(h) also indicates that the Exchange will not list
such expirations on a Wednesday that is a business day in which
monthly options series expire, practically speaking this would not
occur.
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    USO, UNG, GLD, SLV, and TLT Friday expirations would continue to
have a total of five Short Term Option Expiration Dates provided those
Friday expirations are not Fridays in which monthly options series or
Quarterly Options Series expire (``Friday Short Term Option Expiration
Dates'').
    Similar to Wednesday QQQ and IWM Short Term Option Daily
Expirations within Rule 19.5, Interpretation and Policy .05(h), the
Exchange proposes that it may open for trading on any Tuesday or
Wednesday that is a business day series of options on USO, UNG, GLD,
SLV, and TLT that expire at the close of business on each of the next
two Wednesdays that are business days and are not business days in
which Quarterly Options Series expire.
    The interval between strike prices for the proposed Wednesday ETP
Expirations will be the same as those for the current Short Term Option
Series for Friday expirations applicable to the Short Term Option
Series Program.\6\ Specifically, the Wednesday ETP Expirations will
have a strike interval of $0.50 or greater for strike prices below
$100, $1 or greater for strike prices between $100 and $150, and $2.50
or greater for strike prices above $150.\7\ As is the case with other
equity options series listed pursuant to the Short Term Option Series
Program, the Wednesday ETP Expirations series will be P.M.-settled.
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    \6\ See Rule 19.5, Interpretation and Policy .05(e).
    \7\ See id.
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    Pursuant to Rule 19.5, Interpretation and Policy .05(h), with
respect to the Short Term Option Series Program, a Wednesday expiration
series shall expire on the first business day immediately prior to that
Wednesday, e.g., Tuesday of that week if the Wednesday is not a
business day.
    Currently, for each option class eligible for participation in the
Short Term Option Series Program, the Exchange is limited to opening
thirty (30) series for each expiration date for the specific class.\8\
The thirty (30) series restriction does not include series that are
open by other securities exchanges under their respective weekly rules;
the Exchange may list these additional series that are listed by other
options exchanges.\9\ With the proposed changes, this thirty (30)
series restriction would apply to Wednesday USO, UNG, GLD, SLV, and TLT
Short Term Option Daily Expirations as well. In addition, the Exchange
will be able to list series that are listed by other exchanges,
assuming they file similar rules with the Commission to list Wednesday
ETP Expirations.
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    \8\ See Rule 19.5, Interpretation and Policy .05(a).
    \9\ See id.
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    With this proposal, Wednesday ETP Expirations would be treated
similarly to existing Wednesday QQQ and IWM Expirations. With respect
to monthly option series, Short Term Option Daily Expirations will be
permitted to expire in the same week in which monthly option series on
the same class expire. Not listing Short Term Option Daily Expirations
for one week every month because there was a monthly on that same class
on the Friday of that week would create investor confusion.
    Further, as with Wednesday QQQ and IWM Expirations, the Exchange
would not permit Wednesday ETP Expirations to expire on a business day
in which monthly options series or Quarterly Options Series expire.
Therefore, all Short Term Option Daily Expirations would expire at the
close of business on each of the next two Wednesdays that are business
days and are not business days in which monthly options series or
Quarterly Options Series expire. The Exchange believes that it is
reasonable to not permit two expirations on the same day in which a
monthly options series or a Quarterly Options Series would expire
because those options would be duplicative of each other.
    The Exchange does not believe that any market disruptions will be
encountered with the introduction of Wednesday ETP Expirations. The
Exchange has the necessary capacity and surveillance programs in place
to support and properly monitor trading in the proposed Wednesday ETP
Expirations. The Exchange currently trades P.M.-settled Short Term
Option Series that expire Wednesday for QQQ and IWM and has not
experienced any market disruptions nor issues with capacity. Today, the
Exchange has surveillance programs in place to support and properly
monitor trading in Short Term Option Series that expire Wednesday for
QQQ and IWM.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section
6(b) of the Act,\10\ in general, and furthers the objectives of section
6(b)(5) of the Act,\11\ in particular, in that it is 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.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    Similar to Wednesday expirations in QQQ and IWM, the proposal to
permit Wednesday ETP Expirations, subject to the proposed limitation of
two expirations beyond the current week, would protect investors and
the public interest by providing the investing public and other market
participants more choice and flexibility to closely tailor their
investment and hedging decisions in these options and allow for a
reduced premium cost of buying portfolio protection, thus allowing them
to better manage their risk exposure.
    The Exchange represents that it has an adequate surveillance
program in place to detect manipulative trading in the proposed option
expirations, in the same way that it monitors trading in the current
Short Term Option Series for Wednesday QQQ and IWM expirations. The
Exchange also represents that it has the necessary system capacity to
support the new expirations. Finally, the Exchange does not believe
that any market disruptions will be encountered with the introduction
of these option expirations. As discussed above, the Exchange believes
that its proposal is a modest expansion of weekly expiration dates for
GLD, SLV, USO, UNG, and TLT given that it will be limited to two
Wednesday expirations beyond the current week. Lastly, the Exchange
believes its proposal will not be a strain on liquidity providers
because of the multi-class nature of GLD, SLV, USO, UNG, and TLT and
the available hedges in highly correlated instruments, as described
above.
    The Exchange believes that the proposal is consistent with the Act
as the proposal would overall add a small number of Wednesday ETP
Expirations by limiting the addition of two Wednesday expirations
beyond the current week. The addition of Wednesday ETP Expirations
would remove impediments to and perfect the mechanism of a free and
open market by encouraging Market Makers to continue to deploy capital
more efficiently and improve market quality. The Exchange believes that
the proposal will allow market participants to expand hedging tools and
tailor their investment and hedging needs more effectively in USO, UNG,
GLD, SLV, and TLT as these funds are most likely to be utilized by
market participants to hedge the underlying asset classes.
    Similar to Wednesday QQQ and IWM expirations, the introduction of
Wednesday ETP Expirations is consistent with the Act as it will, among
other things, expand hedging tools available to market participants and
allow for a reduced premium cost of buying portfolio protection. The
Exchange believes that Wednesday ETP Expirations will allow market
participants to purchase options on USO, UNG, GLD, SLV, and TLT based
on their timing as needed and allow them to tailor their investment and
hedging needs more effectively, thus allowing them to better manage
their risk exposure. Today, the Exchange lists Wednesday QQQ and IWM
Expirations.\12\
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    \12\ See Rule 19.5, Interpretation and Policy .05(h).
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    The Exchange believes the Short Term Option Series Program has been
successful to date and that Wednesday ETP Expirations should simply
expand the ability of investors to hedge risk against market movements
stemming from economic releases or market events that occur throughout
the month in the same way that the Short Term Option Series Program has
expanded the landscape of hedging. There are no material differences in
the treatment of Wednesday QQQ and IWM expirations compared to the
proposed Wednesday ETP Expirations. Given the similarities between
Wednesday QQQ and IWM expirations and the proposed Wednesday ETP
Expirations, the Exchange believes that applying the provisions in Rule
19.5, Interpretation and Policy .05(h) that currently apply to
Wednesday QQQ and IWM expirations is justified. For example, the
Exchange believes that allowing Wednesday ETP Expirations and monthly
ETP expirations in the same week will benefit investors and minimize
investor confusion by providing Wednesday ETP Expirations in a
continuous and 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 that is not necessary or appropriate
in furtherance of the purposes of the Act. In this regard and as
indicated above, the Exchange notes that the rule change is being
proposed as a competitive response to a filing submitted by Nasdaq ISE
that was recently approved by the Commission,\13\ as well as to
competitive filings submitted by Cboe EDGX Exchange Inc.
(``EDGX''),\14\ Cboe BZX Exchange Inc. (``BZX'') \15\ and BOX Exchange
LLC (``BOX'') \16\ in which each respective exchange indicates that the
filings were submitted as competitive responses to the Nasdaq ISE
filing.
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    \13\ See supra note 1 [sic].
    \14\ See Exchange Act Release No. 99037 (November 29, 2023), 88
FR 84370 (December 5, 2023) (SR-CboeEDGX-2023-071).
    \15\ See Exchange Act Release No. 99036 (November 29, 2023), 88
FR 84383 (December 5, 2023) (SR-CboeBZX-2023-096).
    \16\ See Exchange Act Release No. 98997 (November 21, 2023), 88
FR 82929 (November 27, 2023) (SR-BOX-2023-27).
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    While the proposal will expand the Short Term Options Expirations
to allow Wednesday ETP Expirations to be listed on the Exchange, the
Exchange believes that this limited expansion for Wednesday expirations
for options on USO, UNG, GLD, SLV, and TLT will not impose an undue
burden on competition; rather, it will meet customer demand. The
Exchange believes that market participants will continue to be able to
expand hedging tools and tailor their investment and hedging needs more
effectively in USO, UNG, GLD, SLV, and TLT given multi-class nature of
these products and the available hedges in highly correlated
instruments, as described above. Similar to Wednesday QQQ and IWM
expirations, the introduction of Wednesday ETP Expirations does not
impose an undue burden on competition. The Exchange believes that it
will, among other things, expand hedging tools available to market
participants and allow for a reduced premium cost of buying portfolio
protection. The Exchange believes that Wednesday ETP Expirations will
allow market participants to purchase options on USO, UNG, GLD, SLV,
and TLT based on their timing as needed and allow them to tailor their
investment and hedging needs more effectively. The Exchange does not
believe the proposal will impose any burden on inter-market
competition, as nothing prevents the other options exchanges from
proposing similar rules to list and trade Wednesday ETP Expirations.
Further, the Exchange does not believe the proposal will impose any
burden on intramarket competition, as all market participants will be
treated in the same manner under this proposal.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest, it has become
effective pursuant to section 19(b)(3)(A) of the Act \17\ and Rule 19b-
4(f)(6) \18\ thereunder.
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    \17\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. According to the
Exchange, waiver of the 30-day operative delay would ensure fair
competition among the exchanges by allowing the Exchange to permit the
listing of two Wednesday expirations for options on the ETPs. The
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest
because the proposed rule change does not raise any new or novel
issues.\21\ Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change as operative
upon filing.\22\
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    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
    \21\ See supra note 3.
    \22\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

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-MEMX-2023-35 on the subject line.

Paper Comments

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

All submissions should refer to file number SR-MEMX-2023-35. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-MEMX-2023-35 and should be
submitted on or before January 17, 2024.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12), (59).
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Christina Z. Milnor,
Assistant Secretary.
[FR Doc. 2023-28453 Filed 12-26-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 54 (Tuesday, March 20, 2018)]
[Notices]
[Pages 12236-12237]
[FR Doc No: 2018-05593]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

 Reports, Forms, and Record Keeping Requirements Agency
Information Collection Activity Under OMB Review

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Notice of the OMB review of information collection and
solicitation of public comment.

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SUMMARY: In compliance with the Paperwork Reduction Act of 1995, this
notice announces that the Information Collection Request (ICR)
abstracted below will be submitted to the Office of Management and
Budget (OMB) for review. The ICR describes the nature of the
information collection and its expected burden. A Federal Register
Notice with a 60-day comment period soliciting public comments on the
following information collection was published on July 17, 2017
(Federal Register/Vol. 82, No. 135/pp. 32757-32758).

DATES: Submit comments to the Office of Management and Budget (OMB) on
or before April 19, 2018.

FOR FURTHER INFORMATION CONTACT: Amy Berning, Contracting Officer's
Representative--Task Order, DOT/NHTSA (NTI-131), 1200 New Jersey Avenue
SE, W46-497, Washington, DC 20590. Ms. Berning's phone number is (202)
366-5587 and her email address is [email protected].

SUPPLEMENTARY INFORMATION:
    OMB Control Number: None.
    Title: Crash Risk Associated with Drug and Alcohol Use by Drivers
in Fatal and Serious Injury Crashes.
    Form No.: NHTSA Form 1420, 1421, 1422.
    Type of Review: Regular.
    Respondents: Participants will include seriously or fatally injured
crash-involved drivers (n = 2,500) and matched non-crash-involved
drivers (n = 5,000). Crash-involved drivers will include seriously
injured drivers who are transported to a trauma center by emergency
medical services and fatally injured drivers who are transported
directly to the medical examiner's office. Sampling will occur at three
trauma centers and within the roadway catchment area served by the
trauma center(s). Non-crash-involved drivers will be matched to injured
drivers on crash day of the week, crash time of day, and crash
direction of travel.
    Estimated Time per Participant: Surveys will be administered to
control participants. Questions will be on demographics, trip
information, and opinions about driving while using alcohol and or
drugs. Control participants will also be asked to provide a preliminary
breath test (PBT) sample, and a blood sample.
    For control subjects, the total estimated time is approximately 5
minutes to complete the recruiting and consent process, 5 minutes to
complete the survey, and 10 minutes to provide PBT and blood samples
(20 minutes total). The time to decline participation would take
approximately 1 minute to listen to the researcher describe the study.
A person may drive away if not interested in participating.
    For crash-involved drivers who survived, it will take less than one
minute for obtaining the blood sample, and 4 minutes to review the
study's description--and if not interested in participating--to
complete the ``opt-out'' form (5 minutes total).
    For crash-involved drivers who died, it will take less than one
minute to obtain the blood sample. There will be no burden to the
deceased person or to the public.
    Total Estimated Annual Burden Hours: 965.5 hours per year; for a
total of 1,931 hours across two years.
    Frequency of Collection: Each participant will only respond to the
survey and/or blood sample requests a single time during the study
period.
    Abstract: The National Highway Traffic Safety Administration
(NHTSA)

seeks to examine the risk of being severely or fatally injured in a
motor vehicle crash when drivers use licit and/or illicit drugs. This
effort will involve studying seriously or fatally injured drivers in
crashes and matched non-crash-involved drivers. Participants will
include seriously injured drivers who are transported to a trauma
center by emergency medical services and fatally injured drivers
transported directly to the medical examiner's office. This study will
employ a case-control design that matches two drivers on the roadway
for every crash-involved driver. Control drivers will be selected at or
near the location of the earlier crash. Researchers will match control
drivers on crash day of the week, crash time of day, and crash
direction of travel. Data collection will include a blood sample from
both crash-involved and control drivers. Collection of samples from
seriously injured drivers will be subject to State and Trauma Center
policies regarding collection of fluid samples for research purposes.
Samples from fatally injured drivers will be collected in accord with
State, Trauma Center, and/or coroner/medical examiner policies. Self-
report surveys will be administered to control participants to collect
demographic information, reason for driving trip, and opinions about
driving while using alcohol or drugs. All participating control drivers
will be asked to respond to the survey items, provide a preliminary
breath test sample, and provide a sample of blood.

ADDRESSES: Send comments regarding the burden estimate, including
suggestions for reducing the burden, to the Office of Information and
Regulatory Affairs, Office of Management and Budget, 725 17th Street
NW, Washington, DC 20503, Attention: Desk Officer for Department of
Transportation, National Highway Traffic Safety Administration, or by
email at [email protected], or fax:<PHONE_NUMBER>.
    Comments are Invited on: Whether the proposed collection of
information is necessary for the proper performance of the functions of
the Department of Transportation, including whether the information
will have practical utility; the accuracy of the Department's estimate
of the burden of the proposed information collection; ways to enhance
the quality, utility and clarity of the information to be collected;
and ways to minimize the burden of the collection of information on
respondents, including the use of automated collection techniques or
other forms of information technology.
    A comment to OMB is most effective if OMB receives it within 30
days of publication of this notice.

    Authority: 44 U.S.C. Section 3506(c)(2)(A).

    Issued in Washington, DC, on March 15, 2018.
Jeff Michael,
Associate Administrator, Research and Program Development.
[FR Doc. 2018-05593 Filed 3-19-18; 8:45 am]
 BILLING CODE 4910-59-P


[Federal Register Volume 81, Number 145 (Thursday, July 28, 2016)]
[Proposed Rules]
[Pages 49591-49592]
[FR Doc No: 2016-17509]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 33

[EPA-HQ-OA-2006-0278; FRL-9946-26-OA]
RIN 2090-AA40

Participation by Disadvantaged Business Enterprises in
Procurements Under EPA Financial Assistance Agreements

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: Environmental Protection Agency (EPA) is proposing to amend
the Disadvantaged Business Enterprise (DBE) program. These proposed
amendments will improve the practical utility of the program, minimize
burden, and clarify requirements that have been the subject of
questions from recipients of EPA financial assistance and from
disadvantaged business enterprises. These revisions are in accordance
with the requirements of the Federal laws that govern the EPA DBE
program.

DATES: Comments must be received on or before August 29, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-OA-
2006-0278, at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. The EPA may publish any
comment received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is

restricted by statute. Multimedia submissions (audio, video, etc.) must
be accompanied by a written comment. The written comment is considered
the official comment and should include discussion of all points you
wish to make. The EPA will generally not consider comments or comment
contents located outside of the primary submission (i.e. on the web,
cloud, or other file sharing system). For additional submission
methods, the full EPA public comment policy, information about CBI or
multimedia submissions, and general guidance on making effective
comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Teree Henderson, Office of the
Administrator, Office of Small Business Programs (mail code: 1230A),
Environmental Protection Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax number: 202-
566-0548; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Why is EPA issuing this proposed rule?

    The Agency has published a direct final rule in the ``Rules and
Regulations'' section of this Federal Register, approving the DBE
program revisions, because EPA views the revisions as noncontroversial
and anticipates no adverse comment. The Agency provided reasons for the
approval and additional supplementary information in the preamble to
the direct final rule. If EPA receives no adverse comment, the Agency
will not take further action on this proposed rule. If EPA receives
adverse comment, the Agency will withdraw the direct final rule and it
will not take effect. The EPA would then address all public comments in
any subsequent final rule based on this proposed rule. The EPA does not
intend to institute a second comment period on this action.
    Any parties interested in commenting must do so at this time. For
further information, please contact the persons in the FOR FURTHER
INFORMATION CONTACT section of this document.

List of Subjects in 40 CFR Part 33

    Environmental protection, Grant programs.

    Dated: July 15, 2016.
Gina McCarthy,
Administrator.
[FR Doc. 2016-17509 Filed 7-27-16; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 134 (Thursday, July 14, 2022)]
[Notices]
[Pages 42222-42226]
[FR Doc No: 2022-14997]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95225; File No. SR-CBOE-2022-034]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Update
Its Fees Schedule in Connection With the Exchange's Plans To List and
Trade FLexible EXchange Index Options With an Index Multiplier of One

July 8, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 30, 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 in connection with the Exchange's plans to
list and trade FLexible EXchange (``FLEX'') index options with an index
multiplier of one (``FLEX Micro Options''). 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 (http://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 in connection with
its plans to list and trade FLEX Micro Options.\3\
---------------------------------------------------------------------------

    \3\ The Exchange initially filed the proposed fee changes on
June 27, 2022 (SR-CBOE-2022-031). On June 28, 2022, the Exchange
withdrew that filing and submitted SR-CBOE-2022-033. On June 30,
2022 the Exchange withdrew that filing and submitting this filing.
---------------------------------------------------------------------------

    By way of background, the Exchange has adopted rules to accommodate
the listing and trading of certain FLexible EXchange (``FLEX'') index
options with an index multiplier of one (``FLEX Micro Options'') rather
than the conventional 100. FLEX Micro Options will be available on the
following indices effective June 27, 2022: S&P 500, Russell 2000 (RUT),
Dow Jones Industrial Average (DJX), MSCI Emerging Markets (MXEF), and
MSCI EAF (MXEA). The Exchange believes FLEX Micro Options will expand
investors' choices and flexibility by listing and trading FLEX options
on larger-valued broad-based indexes, which provide investors with the
ability to gain exposure to the market, with a notional value of 1/
100th of the value of currently available FLEX Index Options. The
Exchange believes the additional granularity provided by FLEX Micro
Options with respect to the prices at which investors may execute and
exercise index options on the Exchange will appeal to institutional
investors by providing them with an additional exchange-traded tool to
manage the positions and associated risk in their portfolios more
precisely based on notional value, which currently may equal a fraction
of a standard contract. The Exchange now proposes to amend its Fees
Schedule to accommodate the planned listing and trading of FLEX Micro
options.
Standard Transaction Rates
    First, the Exchange proposes to adopt certain standard transaction
fees in connection with FLEX Micro Options. Specifically, the proposed
rule change adopts certain fees for FLEX Micro Options in the ``Rate
Table for All Products Excluding Underlying Symbol A''.\4\ The Exchange
notes that the proposed standard transaction fees in connection with
FLEX Micros Options are lower-priced than standard FLEX options on the
corresponding indices given their multiplier of one (as compared to 100
for standard FLEX options). Indeed, the proposed transaction fees are
generally near, or approximately, 1/100th of the fees currently
assessed for the corresponding standard FLEX options (inclusive of the
Execution Surcharge, License Surcharges and FLEX Surcharges, as
applicable). The proposed fees are as follows:
---------------------------------------------------------------------------

    \4\ Underlying Symbol List A currently includes OEX, XEO, RUT,
RLG, RLV, RUI, UKXM, SPX (includes SPXW), SPESG and VIX. See Cboe
Options Fees Schedule, Footnote 34.
---------------------------------------------------------------------------

RUT FLEX Micro Options
     Adopts fee code GA, appended to all (i) Customer (capacity
``C''), (ii) Market-Maker (capacity ``M''), and (iii) Clearing Trading
Permit Holders (``TPHs'') (capacity ``F'') and Non-Clearing TPH
Affiliates (capacity ``L'')(collectively, ``Firms'') orders in RUT FLEX
Micro Options and assesses a fee of $0.009 per contract.
     Adopts fee code GB, appended to all Broker-Dealers
(capacity ``B''), Joint Back-Offices (capacity ``J''), Non-Trading
Permit Holder Market-Makers (capacity ``N''), and Professionals
(capacity ``U'') (collectively, ``Non-Customers'') manual and AIM
(Agency/Primary and Contra) orders in RUT FLEX Micro Options and
assesses a fee of $0.009 per contract.; and
     Adopts fee code GC, which is appended to all Non-Customer
electronic orders in RUT FLEX Micro Options and assesses a fee of
$0.012 per contract.
SPX FLEX Micro Options
     Adopts fee code GE, appended to all (i) Customer and (ii)
Firm orders in SPX FLEX Micro Options and assesses a fee of $0.008 per
contract;

     Adopts fee code GF, appended to all Market-Maker orders in
SPX FLEX Micro Options and assesses a fee of $0.006 per contract; and
     Adopts fee code GD, which is appended to all appended to
all Non-Customer orders in SPX FLEX Micro Options and assesses a fee of
$0.009 per contract.
MXEA and MXEF FLEX Micro Options
     Adopts fee code GG, appended to all Customer orders in
MXEA and MXEF FLEX Micro Options and assesses a fee of $0.004 per
contract;
     Adopts fee code GI, appended to all (i) Firm and (ii) Non-
Customer electronic orders in MXEA and MXEF FLEX Micro Options and
assesses a fee of $0.010 per contract;
     Adopts fee code GH, appended to all Market-Maker manual,
electronic and AIM Agency/Primary orders in MXEA and MXEF FLEX Micro
Options and assesses a fee of $0.005 per contract;
     Adopts fee code GK, appended to all (i) Firm and (ii) Non-
Customer manual and AIM Agency/Primary orders in MXEA and MXEF FLEX
Micro Options and assesses a fee of $0.005 per contract;
     Adopts fee code GL, appended to all (i) Firm, (ii) Market-
Maker and (iii) Non-Customer AIM Contra orders in MXEA and MXEF FLEX
Micro Options and assesses a fee of $0.003 per contract; and
     Adopts fee code GN, appended to all (i) Firm, (ii) Market-
Maker and (iii) Non-Customer AIM Response orders in MXEA and MXEF FLEX
Micro Options and assesses a fee of $0.013 per contract.
DJX FLEX Micro Options
     Adopts fee code GG, appended to all Customer orders in DJX
FLEX Micro Options and assesses a fee of $0.004 per contract;
     Adopts fee code GJ, appended to all (i) Firm and (ii) Non-
Customer electronic orders in DJX FLEX Micro Options and assesses a fee
of $0.007 per contract;
     Adopts fee code GH, appended to all Market-Maker manual,
electronic and AIM Agency/Primary orders in DJX FLEX Micro Options and
assesses a fee of $0.005 per contract;
     Adopts fee code GK, appended to all (i) Firm and (ii) Non-
Customer manual and AIM Agency/Primary orders in DJX FLEX Micro Options
and assesses a fee of $0.005 per contract;
     Adopts fee code GL, appended to all (i) Firm, (ii) Market-
Maker and (iii) Non-Customer AIM Contra orders in DJX FLEX Micro
Options and assesses a fee of $0.003 per contract; and
     Adopts fee code GM, appended to all (i) Firm, (ii) Market-
Maker and (iii) Non-Customer AIM Response orders in DJX FLEX Micro
Options and assesses a fee of $0.007 per contract.
Surcharges
    The Exchange does not propose to apply any current surcharges to
FLEX Micro options.\5\ Particularly, the Exchange proposes to exclude
FLEX Micro Options from the surcharges set forth in the Rate Table for
All Products Excluding Underlying Symbol List A (i.e., the Complex
Surcharge Fee, the Surcharge Fee Index License and the FLEX Surcharge
Fee). The Exchange proposes to amend corresponding footnotes 35, 14,
and 17, respectively, to make clear FLEX Micro Options transactions are
excluded from these surcharges.
---------------------------------------------------------------------------

    \5\ The Exchange notes the Trading Processing Services Fee,
which is currently assessed a rate of $0.0025 per contract side,
will apply to FLEX Micro Options.
---------------------------------------------------------------------------

Fee Programs
    The Exchange proposes to exclude FLEX Micro Options from all
pricing programs. The Exchange notes that because FLEX Micro Options
are all options on broad-based indices, the majority of the proposed
changes amend the Fees Schedule in connection with trading in FLEX
Micro Options in a manner that is generally consistent with the way in
which many existing fee programs currently do not apply to trading
standard options on those same indices. Additionally, the Exchange
notes that the majority of the proposed changes also amend the Fees
Schedule in a manner that is generally consistent with the way in which
existing fee programs currently do not apply to trading in another
options product that has an index multiplier of one and thus a smaller
notional value (i.e., NANOS \6\).
---------------------------------------------------------------------------

    \6\ NANOS options are options on the Mini-S&P 500 (``XSP'')
Index (the value of which is 1/10th the value of the S&P 500
(``SPX'') Index) that have an index multiplier of one.
---------------------------------------------------------------------------

    First, the Exchange proposes to adopt footnote 33 (and append to
fee tables as applicable and needed) to make clear that FLEX Micro
Options volume will be excluded from the following programs: \7\ (i)
SPX/SPXW and SPESG Liquidity Provider Sliding Scale, which offers
credits on Market-Maker orders where a Market-Maker achieves certain
volume thresholds based on Market-Maker volume in SPX, SPXW and SPESG,
(ii) the Liquidity Provider Sliding Scale, which offers credits on
Market-Maker orders where a Market-Maker achieves certain volume
thresholds based on total national Market-Maker volume in all
underlying symbols, excluding Underlying Symbol List A, MRUT, NANOS and
XSP during the calendar month, (iii) the Liquidity Provider Sliding
Scale Adjustment Table, which provides that Taker fees be applied to
electronic ``Taker'' volume and a Maker rebate be applied to electronic
``Maker'' volume, in addition to the transaction fees assessed under
the Liquidity Provider Sliding Scale, (iv) the Volume Incentive Program
(``VIP''), which offers a per contract credit for certain percentage
threshold levels of monthly Customer volume in all underlying symbols,
excluding Underlying Symbol List A, Sector Indexes, DJX, MRUT, MXEA,
MXEF, NANOS and XSP, (v) Break-Up Credits, which provides credits to
orders executed in AIM, SAM, FLEX AIM, and FLEX SAM to all products
except Underlying Symbol List A, Sector Indexes, DJX, MRUT, MXEA, MXEF,
NANOS and XSP, (vi) Marketing Fee, which is assessed on transactions of
Market-Makers resulting from Customer orders in all products except
Sector Indexes, DJX, MRUT, MXEA, MXEF and Underlying Symbol List A,\8\
(vii) the Cboe Options Clearing Trading Permit Holder Proprietary
Products Sliding Scale, which provides transaction fees for Firms in
Underlying Symbol List A will be reduced provided a Firm reaches
certain average daily volume (``ADV'') thresholds, (vii), Clearing TPH
Fee Cap, which provides a cap on Firm transaction fees, (viii), Select
Customer Options Reduction (``SCORe'') Program, which is a discount
program for Retail, Customer volume in SPX, SPXW, VIX,

RUT, MXEA, and MXEF,\9\ (ix) Customer Large Trade Discount, which
provides a discount in the form of a cap on transaction fees for
certain Customer executions, (x) Market-Maker Tier Appointment Fees,
which assesses per permit surcharges if Market-Makers meet certain
volume thresholds in SPX/SPX, VIX and RUT, respectively, (xi) Floor
Broker Trading Surcharge, which assesses a surcharge to Floor Brokers
if they execute a certain threshold in SPX/SPXW and VIX volume,
respectively, (xii) Floor Broker Sliding Scale Rebate Program, offers
rebates for Firm Facilitated and non-Firm Facilitated orders that
correspond to certain volume tiers and is designed to incentivize order
flow in multiply-listed options to the Exchange's trading floor, (xiii)
Floor Broker ADV Discount, which provides Floor Brokers rebates on
their Trading Permit fees based on ADV thresholds, (xiv) Floor
Brokerage Fees, which provides discounted rates to executing brokers
for cross and non-crossed orders in OEX, XEO, RUT, RLG, RLV, RUI, UKXM,
SPX/SPXW, SPESG and VIX, (xv) Floor Brokerage Fees Discount Scale,
which provides Floor Brokers opportunity to receive discounts on fees
for orders in OEX, XEO, RUT, SPX, SPXW, SPESG, VIX based on meeting
certain volume thresholds, (xvi) GTH Executing Agent Subsidy Program
which provides designated GTH executing agents a monthly subsidy based
on GTH monthly Customer volume thresholds, (xvii) Order Router Subsidy
Program and Complex Order Router Subsidy Program, which provides that
Participating TPHs or Participating Non-Cboe TPHs may receive a payment
from the Exchange for every executed contract routed to the Exchange
through their system in certain classes and (xviii) Frequent Trader
Program, which provides an opportunity for customer orders to receive
rebates based on meeting different volume thresholds in SPX/SPXW, VIX
and RUT.
---------------------------------------------------------------------------

    \7\ The Exchange proposes to eliminate the current language
under footnote 33 relating to billing information for October 2019,
as it is no longer relevant or needed, and replace it with the
proposed new language. Footnote 33 is already appended to the
following tables in the Fees Schedule: SPX/SPXW and SPESG Liquidity
Provider Sliding Scale, Liquidity Provider Sliding Scale, Liquidity
Provider Sliding Scale Adjustment Table, Volume Incentive Program,
Affiliate Volume Plan, Clearing Trading Permit Holder Proprietary
Products Sliding Scale, Clearing Trading Permit Holder VIX Sliding
Scale, and Select Customer Options Reduction (``SCORe'') Program.
The Exchange is maintaining the appended references to footnote 33
in each of these tables, other than the Clearing Trading Permit
Holder VIX Sliding Scale, as footnote 33 will continue to be
applicable to the programs as such programs will be listed in
proposed footnote 33 as a program where FLEX Micro options is
excluded. Because the Exchange is not offering a VIX FLEX Micro
Option product at this time, the Clearing Trading Permit Holder VIX
Sliding Scale is not applicable and the Exchange therefore proposes
to eliminate the current reference to footnote 33 that currently is
appended to that table.
    \8\ The Exchange notes that the Marketing Fee already excludes
all FLEX Options. See Cboe Options Fees Schedule, Marketing Fee
Table. The Exchange still proposes to append proposed footnote 33 to
the Marketing Fee Table for further clarity as to applicability of
the exclusion for FLEX Micros Options.
    \9\ The Exchange notes that the SCORe program already excludes
all FLEX Options. See Cboe Options Fees Schedule, SCORe Table. The
Exchange still proposes maintain footnote 33, which is currently
appended to the SCORe Table, for further clarity as to applicability
of the exclusion for FLEX Micros Options.
---------------------------------------------------------------------------

    The Exchange also proposes to update footnote 6, which is appended
to the Liquidity Provider Sliding Scale Program, Liquidity Provider
Sliding Scale Adjustment Table, Affiliate Volume Plan, VIP, SCORe and
the ORS/CORS Programs and footnote 36 which is appended to VIP.
Specifically, current footnotes 6 and 36 provides that in the event of
a Cboe Options System outage or other interruption of electronic
trading on Cboe Options that lasts longer than 60 minutes, the Exchange
will adjust the national volume in all underlying symbols excluding
Underlying Symbol List A, Sector Indexes, MRUT, MXEA, MXEF, NANOS, DJX,
and XSP for the entire trading day. The Exchange proposes to add FLEX
Micro Options to the exclusion list.
    The Exchange also proposes to clarify in footnote 11, that for
facilitation orders (other than Sector Indexes (47), FLEX Micros and
Underlying Symbol List A (34)) executed in open outcry, Cboe Options
will assess no Clearing Trading Permit Holder Proprietary transaction
fees, as proposed fee codes for Firm orders in FLEX Micro transactions
will supersede facilitation fee codes (currently FF or FI) for any
facilitation orders in FLEX Micro Options.
    The Exchange notes that a few of the programs listed above in which
FLEX Micros will be excluded also exclude and enumerate other products
in the respective program's table header, notes section and/or
corresponding footnote. Where such exclusions are listed, the Exchange
proposes to add references to FLEX Micros to make clear that, as
discussed above and as will be reflected in proposed [sic] 33, FLEX
Micros are also excluded from the applicable program. Accordingly, the
Exchange proposes to add a reference to FLEX Micros to the exclusion
lists set forth in each of the following respective program table
headers, notes sections and/or footnotes: Liquidity Provider Sliding
Scale notes section, VIP header, Break-Up Credits header, Marketing Fee
notes section, Floor Broker Sliding Scale Rebate Program notes section,
ORS and CORS notes sections, footnote 10, footnote 11, footnote 22,
footnote 29, footnote 30, and footnote 36.
Clarifying Changes
    The Exchange lastly proposes to amend footnotes 18, 19 and 20 of
the Fees Schedule. The foregoing footnotes describe the AIM Contra
Execution Fee, the AIM Agency/Primary Fee and the AIM Responder Fee,
respectively. The Exchange proposes to revise the current language in
each footnote to make clear that applicable standard transaction fees
apply for all orders executed in the Automated Improvement Mechanism
(``AIM''), Solicitation Auction Mechanism (``SAM''), FLEX AIM and FLEX
SAM auctions (that were initially entered as (i) the contra party to an
Agency/Primary Order, (ii) the Agency/Primary Order, or (iii) an AIM
Response, respectively) unless otherwise indicated in the Rate Tables.
The Exchange does not believe it is necessary to list the applicable
products or exclusions in the footnotes, as the Rate Tables in the Fees
Schedule already detail what fee codes and corresponding fees apply for
each of these transactions for each capacity and product. The Exchange
believes the proposed change eliminates unnecessary redundancy and
eliminates potential confusion.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\10\ in general, and
furthers the objectives of Section 6(b)(4),\11\ 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) \12\
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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed amendments to the Fees
Schedule in connection with standard transaction rates for FLEX Micro
Options transactions are reasonable, equitable and not unfairly
discriminatory. Specifically, the Exchange believes that it is
reasonable to assess fees for Customer, Market-Maker, Firm and Non-
Customer orders in FLEX Micro Options that are less than those fees for
transactions in the corresponding standard RUT, SPX, MXEF, MXEA and DJX
FLEX options (all of which overly the same respective indices as the
proposed FLEX Micro Options) because FLEX Micro Options have a smaller
notional value given their multiplier of one. Moreover, the Exchange
believes the proposed transaction fees are reasonable as such fees
reflect approximately 1/100th of the transaction fees (inclusive of
surcharges)

assessed for the corresponding transactions in standard RUT, SPX, MXEF,
MXEA and DJX FLEX options, which as discussed have a multiplier of 100
instead of one like FLEX Micro Options. The Exchange believes its
reasonable to exclude FLEX Micro Options from additional surcharges as
TPHs will not be subject to such surcharges.
    The Exchange believes the proposed standard transaction rates and
exclusion from certain surcharges are equitable and not unfairly
discriminatory because they will apply automatically and uniformly to
all capacities as applicable (i.e., Customer, Market-Make, Firm and
Non-Customer), in FLEX Micro Options. The Exchange also notes that with
respect to lower transaction rates for Customer transactions in certain
FLEX Micro Options, there is a history in the options markets of
providing preferential treatment to customers and customer order flow
attracts additional liquidity to the Exchange, providing market
participants with more trading opportunities and signaling an increase
in Market-Maker activity, which facilitates tighter spreads. This may
cause an additional corresponding increase in order flow from other
market participants, contributing overall towards a robust and well-
balanced market ecosystem, particularly in a newly listed and traded
product. The Exchange also believes that it is equitable and not
unfairly discriminatory to propose lower transaction rates for certain
Market-Maker and Firm orders in certain FLEX Micro Options because the
Exchange recognizes that these market participants can provide key and
distinct sources of liquidity, which is particularly important for a
newly listed and traded options class on the Exchange. An increase in
general market-making activity facilitates tighter spreads, which tend
to signal additional corresponding increase in order flow from other
market participants, ultimately incentivizing more overall order flow
and improving liquidity levels and price transparency on the Exchange
to the benefit of all market participants. Similarly, the Exchange also
recognizes that Firms can be an important source of liquidity when they
facilitate their own customers' trading activity, thus, adding
transparency and promoting price discovery to the benefit of all market
participants. The Exchange notes too that Market-Makers and Firms take
on a number of obligations that other market participants do not have.
For example, unlike other market participants, Market-Makers take on
quoting obligations and other market making requirements and Firms must
have higher capital requirements, clear trades for other market
participants, and must be members of OCC. The Exchange also notes the
proposal to not assess surcharges to FLEX Micro Options is equitable
and not unfairly discriminatory as it applies to all market
participants (i.e., no market participant will be subject to those
surcharges).
    The Exchange believes that the proposed updates to the Fees
Schedule in connection with the application (or rather exclusion) of
fee programs to transactions in FLEX Micro Options are reasonable,
equitable and not unfairly discriminatory. Particularly, the Exchange
believes it is reasonable to exclude transactions in FLEX Micro Options
from the: Liquidity Provider Sliding Scale, Liquidity Provider Sliding
Scale Adjustment Table, Volume Incentive Program, Break-Up Credits,
Affiliate Volume Plan, Clearing Trading Permit Holder Fee Cap, Floor
Broker Sliding Scale Rebate Program, Program, and the ORS and CORS
Programs in the same manner in which standard options on those same
indices are excluded. The Exchange believes that excluding FLEX Micro
Options transactions from certain fees programs is equitable and not
unfairly discriminatory because the programs will equally not apply to,
or exclude in the same manner, all market participants' orders in FLEX
Micro Options. The Exchange believes it's reasonable, equitable and not
unfairly discriminatory to exclude FLEX Micro transactions from the
Marketing Fee and SCORe program as such programs similarly already
exclude FLEX Options. Lastly, the Exchange believes it's reasonable,
equitable, and not unfairly discriminatory to exclude FLEX Micro
Options from the SPX/SPXW and SPESG Liquidity Provider Sliding Scale,
Clearing Trading Permit Holder Proprietary Products Sliding Scale,
Customer Large Trade Discount, Market-Maker Tier Appointment Fee
thresholds, Floor Broker Trading Surcharge thresholds, Floor Broker ADV
Discount, Floor Brokerage Fees Discount Scale, Floor Brokerage Fees,
Frequent Trader, and the GTH Executing Agent Subsidy because the
Exchange is not obligated to include any particular product in such
pricing programs, and the exclusion applies to all market participants
uniformly. Moreover, the Exchange notes that the proposed rule change
does not alter any of the existing program rates or volume
calculations, but instead, merely proposes not to include transactions
in FLEX Micro Options in those programs and volume calculations.
    The Exchange lastly believes the proposed updates to footnotes 18,
19 and 20 of the Fees Schedule makes the footnotes easier to read,
eliminates redundancy between the Rate Tables and the footnotes and
alleviates potential confusion as to the applicability of AIM-related
fees, 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 believes the proposed amendments to its Fee Schedule
will not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. 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 because the proposed FLEX Micro
Options transaction fees for the separate types of market participants
will be assessed automatically and uniformly to all similarly situated
market participants. The Exchange again notes that there is a history
in the options markets of providing preferential treatment to
Customers, Market-Makers and Firms, as described above in the statutory
basis section. Further, the proposed rule change will uniformly exclude
all transactions in FLEX Micro Options from certain programs and fees/
surcharges as it currently does for many of the Exchange's other
proprietary products, including another product with a one multiplier
(i.e., NANOS).
    The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed rule changes apply only to products exclusively listed on the
Exchange. Additionally, the Exchange notes it operates in a highly
competitive market. In addition to Cboe Options, TPHs have numerous
alternative venues that they may participate on and director their
order flow, including 15 other options exchanges, as well as off-
exchange venues, where competitive products are available for trading.
Based on publicly available information, no single options exchange has
more than 16% of the market share of executed volume of

options trades.\13\ Therefore, no exchange possesses significant
pricing power in the execution of option order flow. Moreover, the
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. Specifically, in Regulation NMS, the
Commission highlighted the importance of market forces in determining
prices and SRO revenues and, also, recognized that current regulation
of the market system ``has been remarkably successful in promoting
market competition in its broader forms that are most important to
investors and listed companies.'' \14\ 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'. . . .''.\15\ Accordingly, the Exchange
does not believe its proposed changes to the incentive programs impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
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    \13\ See Cboe Global Markets, U.S. Options Market Volume Summary
by Month (June 24, 2022), available at http://markets.cboe.com/us/options/market_share/.
    \14\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
    \15\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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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 \16\ and paragraph (f) of Rule 19b-4 \17\
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.
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CBOE-2022-034 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-2022-034. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change.
    Persons submitting comments are cautioned that we do not redact or
edit personal identifying information from comment submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CBOE-2022-034
and should be submitted on or before August 4, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-14997 Filed 7-13-22; 8:45 am]
BILLING CODE 8011-01-P