Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Fees Schedule With Respect to Its Strategy Fee Cap, 65099-65100 [2020-22629]
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Federal Register / Vol. 85, No. 199 / Wednesday, October 14, 2020 / Notices
that the proposed rule (SR–FINRA–
2020–020) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.49
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–22636 Filed 10–13–20; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90103; File No. SR–CBOE–
2020–089]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Amend Its
Fees Schedule With Respect to Its
Strategy Fee Cap
October 7, 2020.
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 30, 2020, 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.
jbell on DSKJLSW7X2PROD with NOTICES
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
its Fees Schedule with respect to its
strategy fee cap. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
49 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
19:15 Oct 13, 2020
Jkt 253001
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.
1. Purpose
The Exchange proposes to amend its
Fees Schedule in connection with its
strategy order fee cap, effective
September 30, 2020.
Effective September 1, 2020, the
Exchange amended Footnote 13 to
provide that market-maker, Clearing
Trading Permit Holder, JBO participant,
broker-dealer and non-Trading Permit
Holder market-maker transaction fees
are capped at $0.00 for all merger, short
stock interest, reversal, conversion and
jelly roll strategies executed in open
outcry on the same trading day in the
same option class across all symbols.3
Essentially, that rule change removed
three previous strategy fee cap amounts,
and, instead, adopted a $0.00 cap for
strategies executed in open outcry in all
classes (i.e., all strategies transacted on
the trading floor will be free). The
Exchange proposes to explicitly clarify
in Footnote 13 that in order for a
strategy transaction to be eligible for the
fee cap (i.e., not be assessed transaction
fees), TPHs must mark such strategy
orders with a code approved by the
Exchange identifying the orders as
eligible for the fee cap.4 The Exchange
also proposes to provide that strategy
orders executed during September 2020
will be eligible for the fee cap
notwithstanding not being marked,
provided that a TPH submits a rebate
request with supporting documentation
for such orders to the Exchange within
3 business days of September 30, 2020
(i.e., October 5, 2020).
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
3 See Securities Exchange Act Release No. 89831
(September 11, 2020) 85 FR 58096 (September 17,
2020) (SR–CBOE–2020–084).
4 The Exchange notes that its billing system is
unable to recognize that an order is a strategy order
absent such order being explicitly marked as a
strategy order.
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
65099
Section 6(b) of the Act.5 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 6 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
Section 6(b)(4) of the Act,7 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Trading Permit Holders and other
persons using its facilities.
The Exchange believes making it clear
and explicit in its fees schedule that
TPHs must mark strategy orders with a
code approved by the Exchange in order
to receive the fee cap is reasonable as it
reduces the risk of orders not receiving
the current fee cap that would otherwise
be entitled to it by ensuring TPHs are
aware of the marking requirement.
Additionally, the clarification provides
transparency in the fees schedule and
alleviates potential confusion, thereby
removing impediments to and
perfecting the mechanism of a free and
open market and a national market
system and protecting investors and the
public interest. The Exchange also
believes the marking requirement is
equitable and not unfairly
discriminatory as it applies uniformly to
all TPHs.
The Exchange also believes it’s
reasonable to provide TPHs the option
of submitting a written rebate request to
qualify strategy orders executed in
September 2020 for the fee cap as it
provides TPHs who did not know to
mark their orders an opportunity to
receive the fee cap for strategies that
would otherwise qualify. Particularly,
the Exchange notes it operates in highly
competitive market. To respond to this
competitive marketplace, the Exchange
adopted a fee cap of $0.00 for all
strategy orders, effective September 1,
2020, which was designed to incentivize
Trading Permit Holders to increase their
strategy orders submitted to and
executed on the Exchange’s trading
floor, which can benefit all markets
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78f(b)(4).
6 15
E:\FR\FM\14OCN1.SGM
14OCN1
65100
Federal Register / Vol. 85, No. 199 / Wednesday, October 14, 2020 / Notices
participants. The Exchange believes that
as a result of that change, TPHs did in
fact send more strategy orders to the
Exchange. However, due to the
Exchange’s inadvertent omission to
explicitly state in the fees schedule that
such orders must be marked to qualify
for the fee cap, some TPHs were not
aware of the requirement and did not
mark their orders as strategy orders at
the time of entry. As such, absent the
proposed rule change, such orders
submitted this month would not be
eligible to receive the fee cap,
notwithstanding the fact that such
orders were strategy orders that
otherwise could have qualified. The
Exchange lastly believes allowing TPHs
to submit documentation in order to
qualify for the strategy order is equitable
and not unfairly discriminatory as it
applies uniformly to all TPHs who
submitted strategy orders this month.
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 because the
proposed change applies uniformly to
all TPHs and still provides for TPHs an
opportunity to receive the above
described fee cap. The Exchange
believes that the proposed rule change
will not cause an unnecessary burden
on intermarket competition because it
only applies to trading on Cboe Options.
To the extent that the proposed changes
make Cboe Options a more attractive
marketplace for market participants at
other exchanges, such market
participants are welcome to become
Cboe Options market participants.
jbell on DSKJLSW7X2PROD with NOTICES
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and paragraph (f) of Rule
19b–4 9 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
8 15
9 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
19:15 Oct 13, 2020
Jkt 253001
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.
Number SR–CBOE–2020–089 and
should be submitted on or before
November 4, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
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:
[FR Doc. 2020–22629 Filed 10–13–20; 8:45 am]
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–2020–089 on the subject line.
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Pilot
Related to the Market-Wide Circuit
Breaker in Rule 7.12E
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–2020–089. 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
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on October
6, 2020, NYSE American LLC (‘‘NYSE
American’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90135; File No. SR–
NYSEAMER–2020–74]
October 8, 2020.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
pilot related to the market-wide circuit
breaker in Rule 7.12E. The proposed
rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, 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
self-regulatory organization 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 those statements may be examined at
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\14OCN1.SGM
14OCN1
Agencies
[Federal Register Volume 85, Number 199 (Wednesday, October 14, 2020)]
[Notices]
[Pages 65099-65100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22629]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90103; File No. SR-CBOE-2020-089]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Its Fees Schedule With Respect to Its Strategy Fee Cap
October 7, 2020.
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 30, 2020, 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 amend its Fees Schedule with respect to its strategy fee cap. The
text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule in connection with
its strategy order fee cap, effective September 30, 2020.
Effective September 1, 2020, the Exchange amended Footnote 13 to
provide that market-maker, Clearing Trading Permit Holder, JBO
participant, broker-dealer and non-Trading Permit Holder market-maker
transaction fees are capped at $0.00 for all merger, short stock
interest, reversal, conversion and jelly roll strategies executed in
open outcry on the same trading day in the same option class across all
symbols.\3\ Essentially, that rule change removed three previous
strategy fee cap amounts, and, instead, adopted a $0.00 cap for
strategies executed in open outcry in all classes (i.e., all strategies
transacted on the trading floor will be free). The Exchange proposes to
explicitly clarify in Footnote 13 that in order for a strategy
transaction to be eligible for the fee cap (i.e., not be assessed
transaction fees), TPHs must mark such strategy orders with a code
approved by the Exchange identifying the orders as eligible for the fee
cap.\4\ The Exchange also proposes to provide that strategy orders
executed during September 2020 will be eligible for the fee cap
notwithstanding not being marked, provided that a TPH submits a rebate
request with supporting documentation for such orders to the Exchange
within 3 business days of September 30, 2020 (i.e., October 5, 2020).
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 89831 (September 11,
2020) 85 FR 58096 (September 17, 2020) (SR-CBOE-2020-084).
\4\ The Exchange notes that its billing system is unable to
recognize that an order is a strategy order absent such order being
explicitly marked as a strategy order.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ 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. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\7\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes making it clear and explicit in its fees
schedule that TPHs must mark strategy orders with a code approved by
the Exchange in order to receive the fee cap is reasonable as it
reduces the risk of orders not receiving the current fee cap that would
otherwise be entitled to it by ensuring TPHs are aware of the marking
requirement. Additionally, the clarification provides transparency in
the fees schedule and alleviates potential confusion, thereby removing
impediments to and perfecting the mechanism of a free and open market
and a national market system and protecting investors and the public
interest. The Exchange also believes the marking requirement is
equitable and not unfairly discriminatory as it applies uniformly to
all TPHs.
The Exchange also believes it's reasonable to provide TPHs the
option of submitting a written rebate request to qualify strategy
orders executed in September 2020 for the fee cap as it provides TPHs
who did not know to mark their orders an opportunity to receive the fee
cap for strategies that would otherwise qualify. Particularly, the
Exchange notes it operates in highly competitive market. To respond to
this competitive marketplace, the Exchange adopted a fee cap of $0.00
for all strategy orders, effective September 1, 2020, which was
designed to incentivize Trading Permit Holders to increase their
strategy orders submitted to and executed on the Exchange's trading
floor, which can benefit all markets
[[Page 65100]]
participants. The Exchange believes that as a result of that change,
TPHs did in fact send more strategy orders to the Exchange. However,
due to the Exchange's inadvertent omission to explicitly state in the
fees schedule that such orders must be marked to qualify for the fee
cap, some TPHs were not aware of the requirement and did not mark their
orders as strategy orders at the time of entry. As such, absent the
proposed rule change, such orders submitted this month would not be
eligible to receive the fee cap, notwithstanding the fact that such
orders were strategy orders that otherwise could have qualified. The
Exchange lastly believes allowing TPHs to submit documentation in order
to qualify for the strategy order is equitable and not unfairly
discriminatory as it applies uniformly to all TPHs who submitted
strategy orders this month.
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 because the proposed change
applies uniformly to all TPHs and still provides for TPHs an
opportunity to receive the above described fee cap. The Exchange
believes that the proposed rule change will not cause an unnecessary
burden on intermarket competition because it only applies to trading on
Cboe Options. To the extent that the proposed changes make Cboe Options
a more attractive marketplace for market participants at other
exchanges, such market participants are welcome to become Cboe Options
market participants.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please
include File Number SR-CBOE-2020-089 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-2020-089. 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-2020-089 and should be submitted on
or before November 4, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-22629 Filed 10-13-20; 8:45 am]
BILLING CODE 8011-01-P