[Federal Register Volume 87, Number 200 (Tuesday, October 18, 2022)]
[Notices]
[Pages 63115-63119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22556]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96044; File No. SR-PEARL-2022-42]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by MIAX PEARL, LLC To Amend the 
MIAX Pearl Options Fee Schedule

October 12, 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 September 29, 2022, MIAX PEARL, LLC (``MIAX Pearl'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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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 a proposal to amend the MIAX Pearl Options 
Fee Schedule (the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/pearl at MIAX 
Pearl's principal office, 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

[[Page 63116]]

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 the Add/Remove Tiered Rebates/Fees 
set forth in Section (1)(a) of the Fee Schedule to: (1) modify the 
volume threshold for the alternative volume criteria for certain Maker 
(defined below) rebates for Non-Priority Customer, Firm, Broker-Dealer 
(``BD''), and Non-MIAX Pearl Market Maker origins (collectively, 
``Professional Members''); (2) lower the alternative Maker rebate for 
Professional Members in Penny Classes (defined below); and (3) modify 
the volume threshold for the alternative volume criteria for the lower 
Taker (defined below) fee for Professional Members' Firm origin when 
trading against origins other than Priority Customer \3\ in Penny 
Classes.
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    \3\ ``Priority Customer'' means a person or entity that (i) is 
not a broker or dealer in securities, and (ii) does not place more 
than 390 orders in listed options per day on average during a 
calendar month for its own beneficial accounts(s). The number of 
orders shall be counted in accordance with Interpretation and Policy 
.01 of Exchange Rule 100. See the Definitions section of the Fee 
Schedule and Exchange Rule 100.
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Background
    The Exchange currently assesses transaction rebates and fees to all 
market participants which are based upon the total monthly volume 
executed by the Member \4\ on MIAX Pearl in the relevant, respective 
origin type (not including Excluded Contracts) \5\ (as the numerator) 
expressed as a percentage of (divided by) TCV \6\ (as the denominator). 
In addition, the per contract transaction rebates and fees are applied 
retroactively to all eligible volume for that origin type once the 
respective threshold tier (``Tier'') has been reached by the Member. 
The Exchange aggregates the volume of Members and their Affiliates.\7\ 
Members that place resting liquidity, i.e., orders resting on the book 
of the MIAX Pearl System,\8\ are paid the specified ``maker'' rebate 
(each a ``Maker''), and Members that execute against resting liquidity 
are assessed the specified ``taker'' fee (each a ``Taker''). For 
opening transactions and ABBO \9\ uncrossing transactions, per contract 
transaction rebates and fees are waived for all market participants. 
Finally, Members are assessed lower transaction fees and receive lower 
rebates for order executions in standard option classes in the Penny 
Interval Program \10\ (``Penny Classes'') than for order executions in 
standard option classes that are not in the Penny Interval Program 
(``Non-Penny Classes''), where Members are assessed higher transaction 
fees and receive higher rebates.
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    \4\ ``Member'' means an individual or organization that is 
registered with the Exchange pursuant to Chapter II of Exchange 
Rules for purposes of trading on the Exchange as an ``Electronic 
Exchange Member'' or ``Market Maker.'' Members are deemed 
``members'' under the Exchange Act. See the Definitions Section of 
the Fee Schedule and Exchange Rule 100.
    \5\ ``Excluded Contracts'' means any contracts routed to an away 
market for execution. See the Definitions Section of the Fee 
Schedule.
    \6\ ``TCV'' means total consolidated volume calculated as the 
total national volume in those classes listed on MIAX Pearl for the 
month for which the fees apply, excluding consolidated volume 
executed during the period time in which the Exchange experiences an 
``Exchange System Disruption'' (solely in the option classes of the 
affected Matching Engine (as defined below)). The term Exchange 
System Disruption, which is defined in the Definitions section of 
the Fee Schedule, means an outage of a Matching Engine or collective 
Matching Engines for a period of two consecutive hours or more, 
during trading hours. The term Matching Engine, which is also 
defined in the Definitions section of the Fee Schedule, is a part of 
the MIAX Pearl electronic system that processes options orders and 
trades on a symbol-by-symbol basis. Some Matching Engines will 
process option classes with multiple root symbols, and other 
Matching Engines may be dedicated to one single option root symbol 
(for example, options on SPY may be processed by one single Matching 
Engine that is dedicated only to SPY). A particular root symbol may 
only be assigned to a single designated Matching Engine. A 
particular root symbol may not be assigned to multiple Matching 
Engines. The Exchange believes that it is reasonable and appropriate 
to select two consecutive hours as the amount of time necessary to 
constitute an Exchange System Disruption, as two hours equates to 
approximately 1.4% of available trading time per month. The Exchange 
notes that the term ``Exchange System Disruption'' and its meaning 
have no applicability outside of the Fee Schedule, as it is used 
solely for purposes of calculating volume for the threshold tiers in 
the Fee Schedule. See the Definitions Section of the Fee Schedule.
    \7\ ``Affiliate'' means (i) an affiliate of a Member of at least 
75% common ownership between the firms as reflected on each firm's 
Form BD, Schedule A, or (ii) the Appointed Market Maker of an 
Appointed EEM (or, conversely, the Appointed EEM of an Appointed 
Market Maker). An ``Appointed Market Maker'' is a MIAX Pearl Market 
Maker (who does not otherwise have a corporate affiliation based 
upon common ownership with an EEM) that has been appointed by an EEM 
and an ``Appointed EEM'' is an EEM (who does not otherwise have a 
corporate affiliation based upon common ownership with a MIAX Pearl 
Market Maker) that has been appointed by a MIAX Pearl Market Maker, 
pursuant to the following process. A MIAX Pearl Market Maker 
appoints an EEM and an EEM appoints a MIAX Pearl Market Maker, for 
the purposes of the Fee Schedule, by each completing and sending an 
executed Volume Aggregation Request Form by email to 
[email protected] no later than 2 business days prior to 
the first business day of the month in which the designation is to 
become effective. Transmittal of a validly completed and executed 
form to the Exchange along with the Exchange's acknowledgement of 
the effective designation to each of the Market Maker and EEM will 
be viewed as acceptance of the appointment. The Exchange will only 
recognize one designation per Member. A Member may make a 
designation not more than once every 12 months (from the date of its 
most recent designation), which designation shall remain in effect 
unless or until the Exchange receives written notice submitted 2 
business days prior to the first business day of the month from 
either Member indicating that the appointment has been terminated. 
Designations will become operative on the first business day of the 
effective month and may not be terminated prior to the end of the 
month. Execution data and reports will be provided to both parties. 
See the Definitions Section of the Fee Schedule.
    \8\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \9\ ``ABBO'' means the best bid(s) or offer(s) disseminated by 
other Eligible Exchanges (defined in Exchange Rule 1400(g)) and 
calculated by the Exchange based on market information received by 
the Exchange from OPRA. See the Definitions Section of the Fee 
Schedule and Exchange Rule 100.
    \10\ See Securities Exchange Act Release No. 88992 (June 2, 
2020), 85 FR 35142 (June 8, 2020) (SR-PEARL-2020-06).
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Proposal To Modify the Volume Threshold for the Alternative Volume 
Criteria for Certain Maker Rebates for Professional Members and Lower 
the Alternative Rebate for Professional Members in Penny Classes
    The Exchange proposes to amend footnote ``[supcaret]'' below the 
tables in the Add/Remove Tiered Rebates/Fees section set forth in 
Section (1)(a) of the Fee Schedule to decrease the affiliated Priority 
Customer threshold in order for Members to qualify for alternative 
Maker rebates for options transactions in all classes for Professional 
Members, provided that the Member meets certain volume criteria. 
Currently, Professional Members may qualify for Maker rebates equal to 
the greater of: (A) ($0.40) for Penny Classes and ($0.65) for Non-Penny 
Classes, or (B) the amount set forth in the applicable Tier reached by 
the Member in the relevant origin, if the Member and their Affiliates 
execute at least 2.25% volume in the relevant month, in Priority 
Customer origin type, in all options classes, not including Excluded 
Contracts, as compared to the TCV in all MIAX Pearl listed option 
classes.
    The Exchange proposes to decrease the affiliated Priority Customer 
threshold percentage amount in footnote ``[supcaret]'' in order for 
Members to qualify for the alternative Maker rebates for their 
Professional Members. The threshold will change from at least 2.25% to 
at least 1.25% volume in the relevant month, in Priority Customer 
origin type, in all options classes, not including Excluded Contracts, 
as compared to the TCV in all MIAX Pearl listed option classes. For 
purposes of qualifying for such rates, the Exchange will continue

[[Page 63117]]

to aggregate the Priority Customer volume transacted by Members and 
their Affiliates. As the amount and type of volume that is executed on 
the Exchange has shifted since it first established the alternative 
Maker rebates for options transactions in all classes for Professional 
Members, provided that the Member meets certain volume criteria, the 
Exchange has determined to level-set this threshold amount so that it 
is more reflective of the current operating conditions and the current 
type and amount of volume executed on the Exchange.\11\ This change is 
also for business and competitive reasons in order to attract 
additional Priority Customer volume from Professional Members by 
decreasing the alternative volume threshold in order for Professional 
Members to achieve the alternative Maker rebates denoted by footnote 
``[supcaret]'', which should benefit all Exchange participants by 
providing more trading opportunities and tighter spreads.
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    \11\ See Securities Exchange Act Release Nos. 91605 (April 16, 
2021), 86 FR 21405 (April 22, 2021) (SR-PEARL-2021-16); 83419 (June 
12, 2018), 83 FR 28285 (June 18, 2018) (SR-PEARL-2018-13); 85608 
(April 11, 2019), 84 FR 16073 (April 17, 2019) (SR-PEARL-2019-13).
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    The Exchange also proposes to amend footnote ``[supcaret]'' to 
decrease the alternative Maker rebate for Professional Members in Penny 
Classes. As described above, footnote ``[supcaret]'' provides that 
Members may achieve an alternative Maker rebate of ($0.40) in Penny 
Classes if a certain volume threshold is achieved in the Priority 
Customer origin type, in all options classes, not including Excluded 
Contracts, as compared to the TCV in all MIAX Pearl listed option 
classes. The Exchange now proposes to decrease this Maker rebate from 
($0.40) to ($0.37). Accordingly, with both of the proposed changes to 
footnote ``[supcaret],'' Members may qualify for Maker rebates equal to 
the greater of: (A) ($0.37) for Penny Classes and ($0.65) for Non-Penny 
Classes, or (B) the amount set forth in the applicable Tier reached by 
the Member in the relevant origin, if the Member and their Affiliates 
execute at least 1.25% volume in the relevant month, in Priority 
Customer origin type, in all options classes, not including Excluded 
Contracts, as compared to the TCV in all MIAX Pearl listed option 
classes.
    The purpose of adjusting the specified Maker rebate is for business 
and competitive reasons. In order to attract order flow, the Exchange 
initially set its Maker rebates so that they were higher than other 
options exchanges that operate comparable maker/taker pricing 
models.\12\ The Exchange believes that it is appropriate to adjust this 
specified Maker rebate so that it is more in line with other exchanges, 
but will remain highly competitive such that it should enable the 
Exchange to continue to attract order flow and maintain market 
share.\13\
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    \12\ See Securities Exchange Act Release Nos. 80061 (February 
17, 2017), 82 FR 11676 (February 24, 2017) (SR-PEARL-2017-10) 
(establishing the Exchange's fee schedule with Market Maker and 
Professional Member Maker Penny Class rebates ranging from ($0.25) 
in Tier 1 to ($0.48) in Tier 4, the highest Tier at that time).
    \13\ See, generally, The Nasdaq Stock Market, Options 7 Pricing 
Schedule, Section 2 (Professional Member rebates ranging from $0.20 
in Tier 1 to $0.48 in Tier 6); Cboe BZX Options Fee Schedule, 
Standard Rates (Professional rebates for Penny Class securities 
ranging from $0.25 to $0.48 for adding liquidity; and Firm, Broker-
Dealer, Joint Back Office rebates for Penny Class securities ranging 
from $0.25 to $0.46 for adding liquidity).
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Proposal To Modify the Volume Threshold for the Alternative Volume 
Criteria for the Lower Taker Fee for Professional Members' Firm Origin 
When Trading Against Origins Other Than Priority Customer in Penny 
Classes
    The Exchange proposes to amend footnote ``[diamso]'' below the 
tables in the Add/Remove Tiered Rebates/Fees section set forth in 
Section (1)(a) of the Fee Schedule to decrease the affiliated Priority 
Customer threshold in which Members may qualify for alternative lower 
Taker fee for options transactions in Penny Classes for Professional 
Members' Firm origin, provided that the Member meets certain volume 
criteria. Currently, Professional Members may qualify for the 
alternative lower Taker fee for their Firm origin of $0.48 in Penny 
Classes when trading against origins other than Priority Customer if 
the Member and their Affiliates execute at least 2.25% of TCV in the 
relevant month in the Priority Customer origin type, in all options 
classes, not including Excluded Contracts, as compared to TCV in all 
MIAX Pearl listed option classes.
    The Exchange proposes to decrease the affiliated Priority Customer 
threshold percentage amount in footnote ``[diamso]'' in order for 
Members' Firm origin to qualify for the alternative lower Taker fee. 
The threshold will change from at least 2.25% to at least 1.25% of TCV 
in the relevant month, in Priority Customer origin type, in all options 
classes, not including Excluded Contracts, as compared to the TCV in 
all MIAX Pearl listed option classes. As the amount and type of volume 
that is executed on the Exchange has shifted since it first established 
the alternative Taker fee,\14\ the Exchange has determined to level-set 
this threshold amount so that it is more reflective of the current 
operating conditions and the current type and amount of volume executed 
on the Exchange. The purpose of this change is also for business and 
competitive reasons in order to attract additional Priority Customer 
volume by decreasing the alternative volume threshold in order for 
Professional Members to achieve the lower Taker fee for their Firm 
origin orders, which should benefit all Exchange participants by 
providing more trading opportunities and tighter spreads.
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    \14\ See Securities Exchange Act Release Nos. 85608 (April 11, 
2019), 84 FR 16073 (April 17, 2019) (SR-PEARL-2019-13) (establishing 
lower alternative Taker fee for Firm origin with volume threshold of 
2.00% of TCV); 85807 (May 8, 2019), 84 FR 21368 (May 14, 2019) (SR-
PEARL-2019-15) (removing one of the conditions that must be met in 
order for Members to qualify for the alternative lower Taker fee for 
Penny Classes for their Firm origin).
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Implementation
    The proposed changes are effective beginning October 1, 2022.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \15\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act,\16\ in that it 
is an equitable allocation of reasonable dues, fees and other charges 
among Exchange members and issuers and other persons using its 
facilities, and 6(b)(5) of the Act,\17\ 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 facilitating transactions in 
securities, to remove impediments to and perfect the mechanisms 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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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(4).
    \17\ 15 U.S.C. 78f(b)(1) and (b)(5).
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    The Commission has repeatedly expressed its preference for 
competition over regulatory intervention in determining prices, 
products, and services in the securities markets. 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

[[Page 63118]]

broader forms that are most important to investors and listed 
companies.'' \18\
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    \18\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005).
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    There are currently 16 registered options exchanges competing for 
order flow. Based on publicly-available information, and excluding 
index-based options, as of September 26, 2022, no single exchange has 
more than approximately 10-11% equity options market share for the 
month of September 2022.\19\ Therefore, no exchange possesses 
significant pricing power. More specifically, as of September 26, 2022, 
the Exchange has a market share of approximately 4.04% of executed 
volume of multiply-listed equity options for the month of September 
2022.\20\
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    \19\ See ``The market at a glance,'' (last visited September 26, 
2022), available at https://www.miaxoptions.com/.
    \20\ See id.
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    The Exchange believes that the ever-shifting market share among the 
exchanges from month to month demonstrates that market participants can 
discontinue or reduce use of certain categories of products and 
services, terminate an existing membership or determine to not become a 
new member, and/or shift order flow, in response to transaction fee 
changes. For example, on February 28, 2019, the Exchange filed with the 
Commission a proposal to increase Taker fees in certain Tiers for 
options transactions in certain Penny classes for Priority Customers 
and decrease Maker rebates in certain Tiers for options transactions in 
Penny classes for Priority Customers (which fee was to be effective 
March 1, 2019).\21\ The Exchange experienced a decrease in total market 
share for the month of March 2019, after the proposal went into effect. 
Accordingly, the Exchange believes that its March 1, 2019, fee change, 
to increase certain transaction fees and decrease certain transaction 
rebates, may have contributed to the decrease in MIAX Pearl's market 
share and, as such, the Exchange believes competitive forces constrain 
the Exchange's, and other options exchanges, ability to set transaction 
fees and market participants can shift order flow based on fee changes 
instituted by the exchanges.
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    \21\ See Securities Exchange Act Release No. 85304 (March 13, 
2019), 84 FR 10144 (March 19, 2019) (SR-PEARL-2019-07).
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    The Exchange believes its proposal to decrease the Priority 
Customer threshold for alternative Maker rebates for options 
transactions in all classes for Professional Members, provided that the 
Member meets certain volume criteria is reasonable, equitable and not 
unfairly discriminatory because all similarly situated market 
participants are subject to the same tiered rebates and fees. The 
Exchange believes that providing alternative Maker rebates for options 
transactions in all classes for Professional Members (if the Member 
meets certain volume criteria relating to Priority Customer volume), 
and adjusting the threshold requirement so that it is reflective of 
current operating conditions and the current type and amount of volume 
executed on the Exchange, will encourage Members to execute additional 
Priority Customer and Professional Member volume on the Exchange. The 
Exchange believes that additional Priority Customer and Professional 
Member volume executed on the Exchange will attract further liquidity 
to the Exchange, which in turn will benefit all market participants.
    The Exchange believes its proposal to decrease the alternative 
Maker rebate for Professional Members in Penny Classes is reasonable, 
equitable and not unfairly discriminatory because all similarly 
situated market participants are subject to the same tiered rebates and 
fees. In order to attract order flow, the Exchange initially set its 
Maker rebates so that they were higher than other options exchanges 
that operate comparable maker/taker pricing models.\22\ The Exchange 
believes that it is reasonable and equitable to adjust this specified 
Maker rebate so that it is more in line with other exchanges, but will 
remain highly competitive such that it should enable the Exchange to 
continue to attract order flow and maintain market share.\23\
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    \22\ See Securities Exchange Act Release Nos. 80061 (February 
17, 2017), 82 FR 11676 (February 24, 2017) (SR-PEARL-2017-10) 
(establishing the Exchange's fee schedule with Market Maker and 
Professional Member Maker Penny Class rebates ranging from ($0.25) 
in Tier 1 to ($0.48) in Tier 4, the highest Tier at that time).
    \23\ See, generally, The Nasdaq Stock Market, Options 7 Pricing 
Schedule, Section 2 (Professional Member rebates ranging from $0.20 
in Tier 1 to $0.48 in Tier 6); Cboe BZX Options Fee Schedule, 
Standard Rates (Professional rebates for Penny Class securities 
ranging from $0.25 to $0.48 for adding liquidity; and Firm, Broker-
Dealer, Joint Back Office rebates for Penny Class securities ranging 
from $0.25 to $0.46 for adding liquidity).
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    The Exchange believes its proposal to decrease the Priority 
Customer threshold for the alternative lower Taker fee for Professional 
Members' Firm origin, provided that the Member meets certain volume 
criteria is reasonable, equitable and not unfairly discriminatory 
because all similarly situated market participants are subject to the 
same tiered rebates and fees. The Exchange believes that providing the 
lower alternative Taker fee for Professional Members Firm origin (if 
the Member meets certain volume criteria relating to Priority Customer 
volume), and adjusting the threshold requirement so that it is 
reflective of current operating conditions and the current type and 
amount of volume executed on the Exchange, will encourage Members to 
execute additional Priority Customer and Professional Member volume on 
the Exchange. The Exchange believes that additional Priority Customer 
and Professional Member volume executed on the Exchange will attract 
further liquidity to the Exchange, which in turn will benefit all 
market participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes that the 
proposed change to lower the volume threshold for the alternative 
volume criteria for certain Maker rebates for Professional Members 
should continue to encourage the provision of liquidity that enhances 
the quality of the Exchange's market and increase the number of trading 
opportunities on the Exchange for all participants who will be able to 
compete for such opportunities. Similarly, the Exchange believes that 
the proposed change to lower the volume threshold for the alternative 
volume criteria for the lower Taker fee for Professional Members' Firm 
origin should continue to encourage the provision of liquidity that 
enhances the quality of the Exchange's market and increase the number 
of trading opportunities on the Exchange for all participants who will 
be able to compete for such opportunities. These proposed changes 
should enable the Exchange to continue to attract and compete for 
Professional Member and Priority Customer order flow with other 
exchanges. However, this competition does not create an undue burden on 
competition but rather offers all market participants the opportunity 
to receive the benefit of competitive pricing.
    The Exchange believes the proposed Maker rebate adjustment is 
intended to keep the Exchange's rebates highly competitive with those 
of other exchanges, and to encourage liquidity and should enable the 
Exchange to continue to attract and compete for order flow with other 
exchanges. The Exchange notes that it operates in a highly competitive 
market in which market participants can readily favor competing venues 
if they deem fee levels at a particular venue to be excessive. In such 
an environment, the

[[Page 63119]]

Exchange must continually adjust its rebates and fees to remain 
competitive with other exchanges and to attract order flow. The 
Exchange believes that the proposed rule changes reflect this 
competitive environment because the proposal modifies the Exchange's 
fees in a manner that encourages market participants to continue to 
provide liquidity and to send order flow to the Exchange.

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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\24\ and Rule 19b-4(f)(2) \25\ thereunder. 
At any time within 60 days of the filing of the proposed rule change, 
the Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act. If the Commission takes such 
action, the Commission shall institute proceedings to determine whether 
the proposed rule should be approved or disapproved.
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    \24\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \25\ 17 CFR 240.19b-4(f)(2).
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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-PEARL-2022-42.

Paper Comments

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

All submissions should refer to File Number SR-PEARL-2022-42. 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-PEARL-2022-42, and should be submitted 
on or before November 8, 2022.
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    \26\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-22556 Filed 10-17-22; 8:45 am]
BILLING CODE 8011-01-P


