Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fee Schedule To Correct Drafting Error in a Footnote, 73540-73541 [2020-25384]
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73540
Federal Register / Vol. 85, No. 223 / Wednesday, November 18, 2020 / Notices
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–NASDAQ–2020–075, and
should be submitted on or before
December 9, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–25380 Filed 11–17–20; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90403; File No. SR–
CboeBZX–2020–084]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend the
Fee Schedule To Correct Drafting Error
in a Footnote
khammond on DSKJM1Z7X2PROD with NOTICES
November 12, 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 November
9, 2020, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17:59 Nov 17, 2020
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.
1. Purpose
The Exchange proposes to amend its
fee schedule to correct an inadvertent
drafting error. Specifically, the
Exchange submitted a rule filing on
September 11, 2020 to amend the Fee
Schedule,3 which, among other things,
amended the standard rates for orders
that add liquidity in securities priced
under $1.00 by providing for a standard
rebate of $0.00009 per share
(‘‘September Filing’’). As discussed in
the September Filing, this change was
intended to apply solely to orders
yielding fee codes B, V and Y that add
liquidity to the Exchange. Indeed, the
filing specifically provided that this
new standard rebate for orders in
3 See Securities Exchange Act Release No. 89974
(September 23, 2020), 85 FR 61071 (September 29,
2020) (SR–CboeBZX–2020–071).
1 15
VerDate Sep<11>2014
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to amend the fee schedule. 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://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
13 17
(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.
Jkt 253001
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
securities priced below $1.00 would be
applied to ‘‘corresponding fee codes that
add liquidity (i.e., B, V and Y)’’.
However, the proposed fee change
incorrectly reflected the proposed
$0.00009 subdollar rebate in footnote 7
of the Fee Schedule, which is appended
not only to fee codes B, V and Y, but
also to fee codes HB, HI, HV, HY, RP
and ZA. As a result of this drafting
error, the Fee Schedule incorrectly
indicates that the $0.00009 subdollar
rebate that was introduced for orders
yielding fee codes B, V and Y in the
September Filing also applies to fee
codes HB, HI, HV, HY, RP and ZA.
Therefore, the Exchange proposes to
correct this inadvertent drafting error by
removing footnote 7 from fee codes B,
V and Y and adopting new footnote 19,
appended to fee codes B, V and Y, to
reflect the $0.00009 rebate for orders in
securities priced below $1.00, as well as
revising footnote 7 to provide, as it did
prior to the September Filing, that no
charge or rebate will be applied to
orders in securities priced below $1.00
that yield the fee codes to which
footnote 7 remains appended (HB, HI,
HV, HY, RP and ZA). The Exchange
notes that the proposed rule change is
merely corrective in nature and does not
change any rates that are currently
applied to orders that yield fee codes B,
V, Y, HB, HI, HV, HY, RP and ZA.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,4
in general, and furthers the objectives of
Section 6(b)(4),5 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
issuers and other persons using its
facilities. The Exchange also believes
that the proposed rule change is
consistent with the objectives of Section
6(b)(5) 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, and,
particularly, is not designed to permit
4 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
6 15 U.S.C. 78f.(b)(5).
5 15
E:\FR\FM\18NON1.SGM
18NON1
Federal Register / Vol. 85, No. 223 / Wednesday, November 18, 2020 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed change is reasonable,
equitable and not unfairly
discriminatory as it does not change the
fees or rebates assessed by the
Exchange, but rather corrects an
inadvertent drafting error that amended
a footnote in the Fee Schedule
appended to fee codes for which the
Exchange did not intend the rebate
change proposed in the September
Filing to apply. As an unintended result
of a drafting error in the September
Filing to change language in footnote 7
to reflect updated rebates applicable
only to orders that yield fee codes B, V
and Y, the Fee Schedule is missing
rebate-related language that applies to
orders that yield fee codes HB, HI, HV,
HY, RP and ZA, to which footnote 7 is
also appended. The Exchange believes
that adopting footnote 19 to instead
reflect the recently adopted rates for
orders in securities priced below $1.00
that yield fee codes B, V and Y and
revising footnote 7 to again reflect the
correct rates for the fee codes to which
it is appended (HB, HI, HV, HY, RP and
ZA) would reduce confusion around the
Exchange’s current rates and ensure that
these fees are appropriately referenced
in the Fee Schedule. The rates described
in the proposed language in footnote 7
are the same as the rates identified for
fee codes HB, HI, HV, HY, RP and ZA
prior to the inadvertent change to this
language in the September Filing, and
the Fee Schedule is also being amended
to explicitly provide for the new rates
applicable to fee codes B, V and Y,
pursuant to the September Filing, in
proposed footnote 19. The Exchange
believes that these steps will help
ensure that its Fee Schedule fully and
accurately represents the rates assessed
for orders in securities priced below
$1.00 that yield fee codes HB, HI, HV,
HY, RP and ZA, as well as B, V and Y,
as previously filed with the
Commission. The Exchange again notes
that the proposed rule change is merely
corrective in nature and does not change
any rates that are currently applied to
orders that yield fee codes B, V, Y, HB,
HI, HV, HY, RP and ZA.
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 intramarket or
intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because the
proposed rule change merely corrects an
inadvertent drafting error and is
designed to reduce potential confusion
VerDate Sep<11>2014
17:59 Nov 17, 2020
Jkt 253001
regarding the appropriate subdollar
rates referenced in the footnotes in the
Fee Schedule. The Exchange believes
that this change would add clarity and
increase transparency to the benefit of
Members and investors without having
any impact on competition.
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 7 and paragraph (f) of Rule
19b–4 thereunder.8 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.
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 rule-comments@
sec.gov. Please include File Number SR–
CboeBZX–2020–084 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–CboeBZX–2020–084. 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
7 15
8 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00087
Fmt 4703
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–CboeBZX–2020–084 and
should be submitted on or before
December 9, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–25384 Filed 11–17–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90396; File No. SR–FINRA–
2020–029]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Approving
Proposed Rule Change Relating to
Granularity of Timestamps in Trade
Reports Submitted to FINRA’s Equity
Trade Reporting Facilities
November 12, 2020.
I. Introduction
On September 17, 2020, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
9 17
Sfmt 4703
73541
CFR 200.30–3(a)(12).
E:\FR\FM\18NON1.SGM
18NON1
]]>Agencies
[Federal Register Volume 85, Number 223 (Wednesday, November 18, 2020)]
[Notices]
[Pages 73540-73541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25384]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90403; File No. SR-CboeBZX-2020-084]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Fee Schedule To Correct Drafting Error in a Footnote
November 12, 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 November 9, 2020, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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 BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to amend the fee schedule. 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://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), 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 fee schedule to correct an
inadvertent drafting error. Specifically, the Exchange submitted a rule
filing on September 11, 2020 to amend the Fee Schedule,\3\ which, among
other things, amended the standard rates for orders that add liquidity
in securities priced under $1.00 by providing for a standard rebate of
$0.00009 per share (``September Filing''). As discussed in the
September Filing, this change was intended to apply solely to orders
yielding fee codes B, V and Y that add liquidity to the Exchange.
Indeed, the filing specifically provided that this new standard rebate
for orders in securities priced below $1.00 would be applied to
``corresponding fee codes that add liquidity (i.e., B, V and Y)''.
However, the proposed fee change incorrectly reflected the proposed
$0.00009 subdollar rebate in footnote 7 of the Fee Schedule, which is
appended not only to fee codes B, V and Y, but also to fee codes HB,
HI, HV, HY, RP and ZA. As a result of this drafting error, the Fee
Schedule incorrectly indicates that the $0.00009 subdollar rebate that
was introduced for orders yielding fee codes B, V and Y in the
September Filing also applies to fee codes HB, HI, HV, HY, RP and ZA.
Therefore, the Exchange proposes to correct this inadvertent drafting
error by removing footnote 7 from fee codes B, V and Y and adopting new
footnote 19, appended to fee codes B, V and Y, to reflect the $0.00009
rebate for orders in securities priced below $1.00, as well as revising
footnote 7 to provide, as it did prior to the September Filing, that no
charge or rebate will be applied to orders in securities priced below
$1.00 that yield the fee codes to which footnote 7 remains appended
(HB, HI, HV, HY, RP and ZA). The Exchange notes that the proposed rule
change is merely corrective in nature and does not change any rates
that are currently applied to orders that yield fee codes B, V, Y, HB,
HI, HV, HY, RP and ZA.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 89974 (September 23,
2020), 85 FR 61071 (September 29, 2020) (SR-CboeBZX-2020-071).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\4\ in general, and
furthers the objectives of Section 6(b)(4),\5\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and issuers and other persons
using its facilities. The Exchange also believes that the proposed rule
change is consistent with the objectives of Section 6(b)(5) \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, and, particularly, is not
designed to permit
[[Page 73541]]
unfair discrimination between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
\6\ 15 U.S.C. 78f.(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change is reasonable,
equitable and not unfairly discriminatory as it does not change the
fees or rebates assessed by the Exchange, but rather corrects an
inadvertent drafting error that amended a footnote in the Fee Schedule
appended to fee codes for which the Exchange did not intend the rebate
change proposed in the September Filing to apply. As an unintended
result of a drafting error in the September Filing to change language
in footnote 7 to reflect updated rebates applicable only to orders that
yield fee codes B, V and Y, the Fee Schedule is missing rebate-related
language that applies to orders that yield fee codes HB, HI, HV, HY, RP
and ZA, to which footnote 7 is also appended. The Exchange believes
that adopting footnote 19 to instead reflect the recently adopted rates
for orders in securities priced below $1.00 that yield fee codes B, V
and Y and revising footnote 7 to again reflect the correct rates for
the fee codes to which it is appended (HB, HI, HV, HY, RP and ZA) would
reduce confusion around the Exchange's current rates and ensure that
these fees are appropriately referenced in the Fee Schedule. The rates
described in the proposed language in footnote 7 are the same as the
rates identified for fee codes HB, HI, HV, HY, RP and ZA prior to the
inadvertent change to this language in the September Filing, and the
Fee Schedule is also being amended to explicitly provide for the new
rates applicable to fee codes B, V and Y, pursuant to the September
Filing, in proposed footnote 19. The Exchange believes that these steps
will help ensure that its Fee Schedule fully and accurately represents
the rates assessed for orders in securities priced below $1.00 that
yield fee codes HB, HI, HV, HY, RP and ZA, as well as B, V and Y, as
previously filed with the Commission. The Exchange again notes that the
proposed rule change is merely corrective in nature and does not change
any rates that are currently applied to orders that yield fee codes B,
V, Y, HB, HI, HV, HY, RP and ZA.
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 intramarket or intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act
because the proposed rule change merely corrects an inadvertent
drafting error and is designed to reduce potential confusion regarding
the appropriate subdollar rates referenced in the footnotes in the Fee
Schedule. The Exchange believes that this change would add clarity and
increase transparency to the benefit of Members and investors without
having any impact on competition.
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 \7\ and paragraph (f) of Rule 19b-4
thereunder.\8\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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-CboeBZX-2020-084 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-CboeBZX-2020-084. 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-CboeBZX-2020-084 and should be submitted
on or before December 9, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-25384 Filed 11-17-20; 8:45 am]
BILLING CODE 8011-01-P
