Sunshine Act Meetings, 26740-26741 [2020-09710]
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Federal Register / Vol. 85, No. 87 / Tuesday, May 5, 2020 / Notices
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mechanism that helps keep each ETF’s
price in line with the value of its
underlying portfolio when overpriced or
trading at a discount to the securities on
which it is based; and how these
processes can serve to mitigate the
potential price impact of the ETF shares
that might otherwise result from
increased position limits.63
In addition, as discussed above, the
Exchange believes that current margin
and net capital requirements serve to
limit the size of positions maintained by
any one account.64 The Commission
agrees that these financial requirements
should help to address concerns that a
member or its customer may try to
maintain an inordinately large
unhedged position in the options
subject to this proposal and will help to
reduce risks if such a position is
established.
The Commission further agrees with
the Exchange that the reporting
requirements imposed by Exchange
Rule 8.43,65 as well as the Exchange’s
surveillance procedures, together with
those of other self-regulatory
organizations,66 should help protect
against potential manipulation. The
Commission expects that the Exchange
will continue to monitor trading in the
options subject to this proposal for the
purpose of discovering and sanctioning
manipulative acts and practices, and to
reassess the position and exercise limits,
if and when appropriate, in light of its
findings.
In sum, given the measure of liquidity
for the options subject to this proposal
and the underlying products, the
creation and redemption process and
issuer arbitrage mechanisms that exist
relating to the underlying instruments,
the margin and capital requirements
cited above, the Exchange’s options
reporting requirements, and the
Exchange’s surveillance procedures and
agreements with other markets, the
Commission believes that increasing the
position and exercise limits for XLF and
HYG options to 500,000 contracts, for
EFA and FXI options to 1,000,000
contracts, for SPY options to 3,600,000
contracts, and for MXEA and MXEF
options to 50,000 contracts with no
near-term position limit is consistent
with the Act.
IV. Solicitation of Comments on
Amendment No. 1 to the Proposed Rule
Change
Interested persons are invited to
submit written data, views, and
63 See
supra notes 30–31 and accompanying text.
supra notes 45–48 and accompanying text.
65 See supra notes 38–41 and accompanying text.
66 See supra notes 42–44 and accompanying text.
64 See
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arguments concerning whether
Amendment No. 1 is consistent with the
Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2020–015 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–2020–015. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2020–015, and
should be submitted on or before May
26, 2020.
V. Accelerated Approval of Proposed
Rule Change, as Modified by
Amendment No. 1
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendment No. 1, prior to
the thirtieth day after the date of
publication of notice of the filing of
Amendment No. 1 in the Federal
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Register. As discussed above, in
Amendment No. 1, the Exchange: (1)
Provided additional justification and
analysis in support of the proposal,
which is summarized above; (2) revised
its proposal to eliminate the proposed
increase to position limits for options on
OIH; and (3) made technical, corrective,
and clarifying changes. The Commission
notes that Amendment No. 1 does not
otherwise modify the proposed rule
change, which was subject to a full
notice-and-comment period. Rather,
Amendment No. 1 serves to narrow the
scope of the original proposal by
maintaining the existing position limit
of 250,000 contracts for options on OIH.
The Commission also notes that
Amendment No. 1 provides additional
accuracy, clarity, and justification to the
proposal, thereby facilitating the
Commission’s ability to make the
findings set forth above to approve the
proposal. Accordingly, the Commission
finds good cause, pursuant to Section
19(b)(2) of the Act,67 to approve the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,68 that the
proposed rule change, as modified by
Amendment No. 1 (SR–CBOE–2020–
015), be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.69
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–09520 Filed 5–4–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, that the Securities and
Exchange Commission Investor
Advisory Committee will hold a public
meeting on Thursday May 21, 2020, by
remote means and/or at the
Commission’s headquarters, 100 F St.
NE, Washington, DC 20549. The
meeting will begin at 10:00 a.m. (ET)
and will be open to the public.
PLACE: The meeting will be conducted
by remote means and/or at the
TIME AND DATE:
67 15
U.S.C. 78s(b)(2).
68 Id.
69 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 85, No. 87 / Tuesday, May 5, 2020 / Notices
Commission’s headquarters, 100 F St.
NE, Washington, DC 20549. Members of
the public may watch the webcast of the
meeting on the Commission’s website at
www.sec.gov.
STATUS: This Sunshine Act notice is
being issued because a majority of the
Commission may attend the meeting.
MATTERS TO BE CONSIDERED: The agenda
for the meeting includes welcome
remarks, approval of previous meeting
minutes, discussion of subcommittee
recommendations, panel discussion
regarding index funds, a non-public
administrative session, panel discussion
regarding credit rating agencies, and
subcommittee reports.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: May 1, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–09710 Filed 5–1–20; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88771; File No. SR–
CboeBZX–2020–011]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change To Amend Certain Rules
Within Rules 4.5 Through 4.16, Which
Contains the Exchange’s Compliance
Rule (‘‘Compliance Rule’’) Regarding
the National Market System Plan
Governing the Consolidated Audit Trail
(the ‘‘CAT NMS Plan’’ or ‘‘Plan’’), To Be
Consistent With Certain Proposed
Amendments to and Exemptions From
the CAT NMS Plan as Well as To
Facilitate the Retirement of Certain
Existing Regulatory Systems
khammond on DSKJM1Z7X2PROD with NOTICES
April 29, 2020.
I. Introduction
On January 22, 2020, Cboe BZX
Exchange, Inc. (‘‘Cboe BZX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend the Exchange’s compliance rules
regarding the National Market System
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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26741
Plan Governing the Consolidated Audit
Trail (‘‘CAT NMS Plan’’).3 The proposed
rule change was published for comment
in the Federal Register on February 5,
2020.4 On March 20, 2020, the
Commission extended the time period
within which to approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to approve or
disapprove the proposed rule change, to
May 5, 2020.5 The Commission received
no comments on the proposal. This
order institutes proceedings pursuant to
Exchange Act Section 19(b)(2)(B) to
determine whether to approve or
disapprove File No. SR–CboeBZX–
2020–011.6
Plan filed with the Commission; 10 (2)
amend the dates for required testing and
reporting in the Compliance Rule for
Industry Member reporting; 11 (3) amend
the rules to require Industry Members to
submit trade reports for executions and
cancellations for cancelled trades to the
FINRA’s Trade Reporting Facilities,
FINRA’s OTC Reporting Facility or
FINRA’s Alternative Display Facility; 12
(4) revise the timestamp granularity
requirement to require Industry
Members with order handling or
execution systems that utilize time
stamps in increments finer than
milliseconds to report timestamps up to
nanoseconds when reporting Industry
Member data 13 to the Central
II. Description of the Proposed Rule
Change
10 See Notice, supra note 4, at 6590. See also
Letter to Vanessa Countryman, Secretary, SEC, from
Michael Simon, CAT NMS Plan Operating
Committee Chair re: Notice of Filing of Amendment
to the National Market System Plan Governing the
Consolidated Audit Trail (April 14, 2020). The
Commission has not approved or disapproved the
changes proposed in this amendment.
11 See Notice, supra note 4, at 6593–98. On
February 19, 2020, the Participants submitted a
request for exemptive relief from the reporting dates
required by the CAT NMS Plan. See Letter to
Vanessa Countryman, Secretary, SEC, from Michael
Simon, CAT NMS Plan Operating Committee Chair,
re: Request for Exemption from Provisions of the
National Market System Plan Governing the
Consolidated Audit Trail related to Industry
Member Reporting Dates (Feb. 19, 2020). On April
20, 2020, the Commission granted limited
exemptive relief to allow for the implementation of
phased reporting for Industry Members. See
Securities Exchange Act Release No. 88702 (April
20, 2020), 85 FR 23075 (April 24, 2020).
12 See Notice, supra note 4, at 6598. On February
12, 2020, the Participants submitted a request for
exemptive relief from the requirement in Sections
6.4(d)(ii)(A)(2) and (B) of the CAT NMS Plan to
require Industry Members to record and report, if
an order is executed, the SRO-Assigned Market
Participant Identifier of the clearing broker, and if
a trade is cancelled, the cancelled trade indicator.
See Letter to Vanessa Countryman, Secretary, SEC,
from Michael Simon, CAT NMS Plan Operating
Committee Chair, re: Request for Exemption from
Certain Provisions of the National Market System
Plan Governing the Consolidated Audit Trail
related to FINRA Facility Data Linkage (Feb. 12,
2020). If granted, the exemptive relief would revise
CAT reporting requirements regarding cancelled
trades and SRO-Assigned Market Participant
Identifiers of clearing brokers, if applicable, in
connection with order executions, as such
information would be available from FINRA’s trade
reports submitted to CAT.
13 See Notice, supra note 4, at 6598. On February
3, 2020, the Participants filed a request for
exemptive relief from the current CAT NMS Plan
requirement to record and report Industry Member
Data with time stamps consistent with their system,
a requirement from which the Exchange requests an
exemption. See Letter to Vanessa Countryman,
Secretary, SEC, from Michael Simon, CAT NMS
Plan Operating Committee Chair, re: Request for
Exemption from Certain Provisions of the National
Market System Plan Governing the Consolidated
Audit Trail related to Granularity of Timestamps
and Relationship Identifiers (Feb. 3, 2020). On April
8, 2020, the Commission granted the exemptive
relief for timestamp granularity. See Securities
Exchange Act Release No. 88608 (April 8, 2020), 85
FR 20743 (April 14, 2020).
The Exchange proposes to amend
certain rules within Rules 4.5 through
4.16 of the Exchange’s rulebook
(‘‘Compliance Rule’’), which sets forth
rules regarding Industry Member 7
compliance with the CAT NMS Plan.
Specifically, the proposed rule change
would make the following changes to
the Compliance Rule to be consistent
with certain proposed amendments to
and exemption requests submitted by
the Participants 8 of the CAT NMS Plan:
(1) Revise data reporting requirements
for the Firm Designated ID 9 based on a
proposed amendment to the CAT NMS
3 The CAT NMS Plan was approved by the
Commission, as modified, on November 15, 2016.
See Securities Exchange Act Release No. 79318
(November 15, 2016), 81 FR 84696 (November 23,
2016).
4 See Securities Exchange Act Release No. 88101
(January 30, 2020), 85 FR 6589 (‘‘Notice’’).
5 See Securities Exchange Act Release No. 88440,
85 FR 17141 (March 26, 2020).
6 15 U.S.C. 78(s)(b)(2)(B).
7 Industry Member means a member of a national
securities exchange or a member of a national
securities association. See CAT NMS Plan, supra
note 3, at Section 1.1.
8 The Participants include BOX Exchange LLC,
Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc.,
Cboe C2 Exchange, Inc., Cboe EDGA Exchange, Inc.,
Cboe EDGX Exchange, Inc., Cboe Exchange, Inc.,
Financial Industry Regulatory Authority, Inc.,
Investors’ Exchange LLC, Long-Term Stock
Exchange, Inc., Miami International Securities
Exchange LLC, MIAX Emerald, LLC, MIAX PEARL,
LLC, Nasdaq BX, Inc., Nasdaq GEMX, LLC, Nasdaq
ISE, LLC, Nasdaq MRX, LLC, Nasdaq PHLX LLC,
The Nasdaq Stock Market LLC, New York Stock
Exchange LLC, NYSE American LLC, NYSE Arca,
Inc., NYSE Chicago, Inc., and NYSE National, Inc.
9 As proposed, ‘‘Firm Designated ID’’ would mean
a unique and persistent identifier for each trading
account designated by Industry Members for
purposes of providing data to the Central
Repository, where each such identifier is unique
among all identifiers from any given Industry
Member; provided, however, such identifier may
not be the account number for such trading account
if the trading account is not a proprietary account.
See proposed Exchange Rule 4.5(r).
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Agencies
[Federal Register Volume 85, Number 87 (Tuesday, May 5, 2020)]
[Notices]
[Pages 26740-26741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09710]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: Notice is hereby given, pursuant to the provisions of
the Government in the Sunshine Act, Public Law 94-409, that the
Securities and Exchange Commission Investor Advisory Committee will
hold a public meeting on Thursday May 21, 2020, by remote means and/or
at the Commission's headquarters, 100 F St. NE, Washington, DC 20549.
The meeting will begin at 10:00 a.m. (ET) and will be open to the
public.
PLACE: The meeting will be conducted by remote means and/or at the
[[Page 26741]]
Commission's headquarters, 100 F St. NE, Washington, DC 20549. Members
of the public may watch the webcast of the meeting on the Commission's
website at www.sec.gov.
STATUS: This Sunshine Act notice is being issued because a majority of
the Commission may attend the meeting.
MATTERS TO BE CONSIDERED: The agenda for the meeting includes welcome
remarks, approval of previous meeting minutes, discussion of
subcommittee recommendations, panel discussion regarding index funds, a
non-public administrative session, panel discussion regarding credit
rating agencies, and subcommittee reports.
CONTACT PERSON FOR MORE INFORMATION: For further information and to
ascertain what, if any, matters have been added, deleted or postponed;
please contact Vanessa A. Countryman from the Office of the Secretary
at (202) 551-5400.
Dated: May 1, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020-09710 Filed 5-1-20; 4:15 pm]
BILLING CODE 8011-01-P