Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Withdrawal of a Proposed Rule Change To Amend Certain Rules Within Rules 4.5 Through 4.16, Which Contains the Exchange's Compliance Rule Regarding the National Market System Plan Governing the Consolidated Audit Trail (“CAT NMS 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, 42452-42453 [2020-15114]
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Federal Register / Vol. 85, No. 135 / Tuesday, July 14, 2020 / Notices
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–2020–065 and
should be submitted on or before
August 4, 2020.
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.17 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,18 which requires that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to remove impediments and to
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. The
Commission also believes that the
proposal is consistent with Sections
6(b)(1) and 6(b)(6) of the Act 19 which
require that the rules of an exchange
enforce compliance with, and provide
appropriate discipline for, violations of
Commission and Exchange rules.
Finally, the Commission finds that the
proposal is consistent with the public
interest, the protection of investors, or
otherwise in furtherance of the purposes
of the Act, as required by Rule 19d–
1(c)(2) under the Act,20 which governs
minor rule violation plans.
As stated above, the Exchange
proposes to add the CAT Compliance
Rules to the list of minor rule violations
17 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
18 15 U.S.C. 78f(b)(5).
19 15 U.S.C. 78f(b)(1) and 78f(b)(6).
20 17 CFR 240.19d–1(c)(2).
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17:58 Jul 13, 2020
Jkt 250001
in Rule 13.15 to be consistent with the
approach FINRA has taken for minor
violations of its corresponding CAT
Compliance Rules.21 The Commission
has already approved FINRA’s treatment
of CAT Compliance Rules violations
when it approved the addition of CAT
Compliance Rules to FINRA’s MRVP.22
As noted in that order, and similarly
herein, the Commission believes that
Exchange’s treatment of CAT
Compliance Rules violations as part of
its MRVP provides a reasonable means
of addressing violations that do not rise
to the level of requiring formal
disciplinary proceedings, while
providing greater flexibility in handling
certain violations. However, the
Commission expects that, as with
FINRA, the Exchange will continue to
conduct surveillance with due diligence
and make determinations based on its
findings, on a case-by-case basis,
regarding whether a sanction under the
rule is appropriate, or whether a
violation requires formal disciplinary
action. Accordingly, the Commission
believes the proposal raises no novel or
significant issues.
For the same reasons discussed above,
the Commission finds good cause,
pursuant to Section 19(b)(2) of the
Act,23 for approving the proposed rule
change prior to the thirtieth day after
the date of publication of the notice of
the filing thereof in the Federal
Register. The proposal merely adds the
CAT Compliance Rules to the
Exchange’s MRVP and harmonizes its
application with FINRA’s application of
CAT Compliance Rules under its own
MRVP. Accordingly, the Commission
believes that a full notice-and-comment
period is not necessary before approving
the proposal.
V. Conclusion
It Is Therefore Ordered, pursuant to
Section 19(b)(2) of the Act 24 and Rule
19d–1(c)(2) thereunder,25 that the
proposed rule change (SR–CBOE–2020–
21 As discussed above, the Exchange has entered
into a Rule 17d–2 Plan and an RSA with FINRA
with respect to the CAT Compliance Rules. The
Commission notes that, unless relieved by the
Commission of its responsibility, as may be the case
under the Rule 17d–2 Plan, the Exchange continues
to bear the responsibility for self-regulatory conduct
and liability for self-regulatory failures, not the selfregulatory organization retained to perform
regulatory functions on the Exchange’s behalf
pursuant to an RSA. See Securities Exchange
Release No. 61419 (January 26, 2010), 75 FR 5157
(February 1, 2010) (SR–BATS–2009–031), note 93
and accompanying text.
22 See supra note 7.
23 15 U.S.C. 78s(b)(2).
24 15 U.S.C. 78s(b)(2).
25 17 CFR 240.19d–1(c)(2).
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065) be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–15113 Filed 7–13–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89258; File No. SR–
CboeEDGA–2020–003]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Amend Certain Rules Within Rules
4.5 Through 4.16, Which Contains the
Exchange’s Compliance Rule
Regarding the National Market System
Plan Governing the Consolidated Audit
Trail (‘‘CAT NMS 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
July 8, 2020.
On January 22, 2020, Cboe EDGA
Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGA’’)
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 rule regarding the National
Market System Plan Governing the
Consolidated Audit Trail. The proposed
rule change was published for comment
in the Federal Register on February 5,
2020.3 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, 2020.4 On April 29, 2020, the
Commission issued an order instituting
proceedings under Section 19(b)(2)(B) of
the Act 5 to determine whether to
approve or disapprove the proposed
rule change.6 The Commission received
26 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 88102
(January 30, 2020), 85 FR 6659.
4 See Securities Exchange Act Release No. 88446,
85 FR 17151 (March 26, 2020).
5 15 U.S.C. 78s(b)(2)(B).
6 See Securities Exchange Act Release No. 88772,
85 FR 26762 (May 5, 2020).
1 15
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Federal Register / Vol. 85, No. 135 / Tuesday, July 14, 2020 / Notices
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
no comment letters regarding the
proposed rule change.
On June 18, 2020, the Exchange
withdrew the proposed rule change
(SR–CboeEDGA–2020–003).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–15114 Filed 7–13–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89248; File No. SR–CBOE–
2020–063]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 8.16 and
Rule 9.2 to Temporarily Extend the
Filing Deadline for Certain
Supervision-Related Reports
July 8, 2020.
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 July 1,
2020, Cboe Exchange, Inc. (‘‘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
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
Rule 8.16 and Rule 9.2 to temporarily
extend the filing requirements for
certain supervision-related reports,
currently given an extension through
June 30, 2020, to July 31, 2020. The text
of the proposed rule change is provided
in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
17:58 Jul 13, 2020
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Given current market conditions, the
Exchange proposes to provide its
Trading Permit Holders (‘‘TPHs’’)
temporary relief from filing certain
supervision-related reports pursuant to
Rule 8.16 (Supervision) and Rule 9.2
(Supervision of Accounts).
The Exchange has been closely
monitoring the current situation
regarding the novel coronavirus
(‘‘COVID–19’’) pandemic. The Exchange
understands COVID–19 has placed
stress on market participants’
information technology infrastructure
and the required deployment of
significant resources, including to
implement and continuously adapt
business continuity plans. On March 11,
2020, the World Health Organization
characterized COVID–19 as a pandemic
and to slow the spread of the disease,
federal and state officials implemented
social-distancing measures, placed
significant limitations on large
gatherings, limited travel, and closed
non-essential businesses, all of which
are largely still in place for the
foreseeable future. Indeed, in response
to the pandemic, the Exchange has
taken various actions to allow it to
maintain fair and orderly markets,
including the closure of its trading floor,
which remained inoperable into June
2020, and is currently operating in a
modified manner due to the ongoing
pandemic.5 The Exchange also notes
5 See Tradedesk Update No. C2020031204 (March
12, 2020) Novel Coronavirus Update, Trading Floor
Closure; and Tradedesk Update No. C2020060300
(June 3, 2020) Cboe Options Trading Floor ReOpening. The trading floor is operating currently
1 15
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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.
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42453
that in response to COVID–19, the
Financial Industry Reporting Authority
(‘‘FINRA’’) recently reissued temporary
relief for member firms by, among other
things, extending the deadline for
submitting their supervision-related
reports (FINRA Rule 3120 Report and
FINRA Rule 3130 certification) from
their prior extension deadlines of June
30, 2020 6 to July 31, 2020.7
By way of background, (1) Rule
8.16(g)(2) provides that by April 1 of
each year each Trading Permit Holder
shall submit to the Exchange written
report on the Trading Permit Holder’s
supervision and compliance effort
during the preceding year and on the
adequacy of the Trading Permit Holder’s
ongoing compliance processes and
procedures; (2) Rule 9.2(g) provides that
by April 1 of each year each TPH
organization that conducts a nonTrading Permit Holder customer
business shall submit to the Exchange a
written report on the TPH organization’s
supervision and compliance effort
during the preceding year and on the
adequacy of the TPH organization’s
ongoing compliance processes and
procedures; and (3) Rule 9.2(h) provides
that by April 1 of each year, each TPH
organization shall submit a copy of the
report that paragraph (g) (of Rule 9.2)
requires the TPH organization to
prepare to its one or more control
persons or, if the TPH organization has
no control person, to the audit
committee of its board of directors or its
equivalent committee or group. Both
Rules currently provide relief to TPHs
and their employees by extending these
deadlines to June 30, 2020.8 However,
as COVID–19 remains an ongoing
pandemic, to meet the current June 30
deadlines in Rules 8.16 and 9.2, TPH
personnel would have to divide their
efforts and resources that are otherwise
necessary to address continued
disruptions and stresses as a result of
the ongoing COVID–19 pandemic.
Therefore, the Exchange proposes to
extend the filing deadline through July
with a modified configuration of trading crowds in
order to implement social distancing and other
measures consistent with local and state health and
safety guidelines to help protect the safety and
welfare of individuals accessing the trading floor.
6 See FINRA Regulatory Notice 20–08, FAQs,
Supervision (updated May 19, 2020) available at
https://www.finra.org/rules-guidance/key-topics/
covid-19/faq#supe; see also FINRA Regulatory
Notice 20–08 (March 9, 2020) available at https://
www.finra.org/rules-guidance/notices/20-08.
7 See FINRA Regulatory Notice 20–08, FAQs,
Supervision (updated June 29, 2020) available at
https://www.finra.org/rules-guidance/key-topics/
covid-19/faq#supe.
8 See Securities Exchange Act Nos. 88978 (June 1,
2020), 85 FR 34688 (June 5, 2020) (SR–CBOE–2020–
049); and 88528 (March 31, 2020), 85 FR 19196
(April 6, 2020) (SR–CBOE–2020–029).
E:\FR\FM\14JYN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 135 (Tuesday, July 14, 2020)]
[Notices]
[Pages 42452-42453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15114]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89258; File No. SR-CboeEDGA-2020-003]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Withdrawal of a Proposed Rule Change To Amend Certain Rules Within
Rules 4.5 Through 4.16, Which Contains the Exchange's Compliance Rule
Regarding the National Market System Plan Governing the Consolidated
Audit Trail (``CAT NMS 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
July 8, 2020.
On January 22, 2020, Cboe EDGA Exchange, Inc. (``Exchange'' or
``EDGA'') 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 rule regarding
the National Market System Plan Governing the Consolidated Audit Trail.
The proposed rule change was published for comment in the Federal
Register on February 5, 2020.\3\ 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.\4\ On April 29, 2020, the Commission issued an order
instituting proceedings under Section 19(b)(2)(B) of the Act \5\ to
determine whether to approve or disapprove the proposed rule change.\6\
The Commission received
[[Page 42453]]
no comment letters regarding the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 88102 (January 30,
2020), 85 FR 6659.
\4\ See Securities Exchange Act Release No. 88446, 85 FR 17151
(March 26, 2020).
\5\ 15 U.S.C. 78s(b)(2)(B).
\6\ See Securities Exchange Act Release No. 88772, 85 FR 26762
(May 5, 2020).
---------------------------------------------------------------------------
On June 18, 2020, the Exchange withdrew the proposed rule change
(SR-CboeEDGA-2020-003).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-15114 Filed 7-13-20; 8:45 am]
BILLING CODE 8011-01-P
