Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Fees Schedule, 77295-77297 [2020-26403]
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Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
reflected in NSCC’s Rules and therefore
publicly available to NSCC’s Members
and prospective members for
application to their own portfolios.
Specifically, the proposed rule text
would reflect the two sets of changes in
the proposal. First, the proposed rule
text would define the types of securities
that would constitute ‘‘Illiquid
Securities’’ as three particular categories
of securities, as described in Section
I.C(i), (ii), and (iii). By reviewing the
definitions of an Illiquid Security,
NSCC’s members should be able to
understand the types of factors that
would cause a security to be considered
an Illiquid Security, all of which are
ascertainable, such as its trading history
(including whether it is traded on an
exchange or not and, if so, on which
exchange), its market capitalization, and
the type of security (i.e., whether it is an
ADR). The specific parameters of the
illiquidity ratio test would also be
reflected in NSCC’s Rules, thereby
enabling a Member to determine
whether a security that is an ADR or has
a micro-capitalization of less than $300
million would be an Illiquid Security.
Second, the proposed rule text would
provide that NSCC would apply a
haircut to Illiquid Securities to
determine the appropriate volatility
component, with Illiquid Securities
grouped by price level to determine the
appropriate haircut to apply to a
particular security. The proposed rule
text would further specify that the
haircut percentage would be the highest
of the three percentages as provided in
Section I.D(i), and would be determined
at least annually. Additionally, if a
Member had questions with respect to a
particular security, it could use the
various client-facing tools described
above to determine whether a security
would be considered an Illiquid
Security. Taken together, the
Commission believes that the proposal,
which would be reflected in NSCC’s
Rules, in conjunction with the various
client-facing tools, provides sufficient
information to Members to understand
the operation of the haircut-based
volatility charges and how such charges
would apply to particular transactions.
The Commission further believes that
NSCC provided sufficient information to
Members to identify and evaluate the
risks and other material costs they
would incur due to securities with
illiquid characteristics under the
proposal.
For these reasons, the Commission
disagrees with the comments stating
that the proposal lacks details and does
not explain how the haircut-based
volatility charge will be calculated, and
that the proposal does not allow
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18:11 Nov 30, 2020
Jkt 253001
Members to predict the impact on their
activities. The Commission
acknowledges that, as some commenters
have noted, the proposal does not
provide or specify the actual models or
calculations that NSCC would use to
determine the appropriate haircut or
what constitutes an Illiquid Security.
However, when adopting the CCA
Standards,140 the Commission declined
to adopt a commenter’s view that a
covered clearing agency should be
required to provide, at least quarterly,
its methodology for determining initial
margin requirements at a level of detail
adequate to enable participants to
replicate the covered clearing agency’s
calculations, or, in the alternative, that
the covered clearing agency should be
required to provide a computational
method with the ability to determine the
initial margin associated with changes
to each respective participant’s portfolio
or hypothetical portfolio, participant
defaults and other relevant information.
The Commission stated that
‘‘[m]andating disclosure of this
frequency and granularity would be
inconsistent with the principles-based
approach the Commission is taking in
Rule 17Ad–22(e).’’ 141 Consistent with
that approach, the Commission does not
believe that Rule 17Ad–22(e)(23)(ii)
would require NSCC to disclose its
actual margin methodology, so long as
NSCC has provided sufficient
information for its Members to
understand the potential costs and risks
associated with participating in NSCC
for clearing Illiquid Securities.
For the reasons discussed above, the
Commission believes that the proposals
in the Proposed Rule Change would
enable NSCC to establish, implement,
maintain, and enforce written policies
and procedures reasonably designed to
provide sufficient information to enable
Members to identify and evaluate the
risks, fees, and other material costs they
incur as NSCC’s Members, consistent
with Rule 17Ad–22(e)(23)(ii).142
III. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular with the requirements of
Section 17A of the Act 143 and the rules
and regulations promulgated
thereunder.
140 17
CFR 240.17Ad–22(e).
CCA Standards Adopting Release, supra
note 64, 81 FR at 70845.
142 17 CFR 240.17Ad–22(e)(23)(ii).
143 15 U.S.C. 78q–1.
141 See
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77295
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 144 that
proposed rule change SR–NSCC–2020–
003, be, and hereby is, approved.145
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.146
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–26401 Filed 11–30–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90504; File No. SR–CBOE–
2020–111]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Amend Its
Fees Schedule
November 24, 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
16, 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.
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. 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/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
144 15
U.S.C. 78s(b)(2).
approving the proposed rule change, the
Commission considered the proposals’ impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f). See also Section II.B.
146 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
145 In
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Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
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
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1. Purpose
The Exchange proposes to adopt a
new COVID–19 Test Fee in connection
with the COVID–19 pandemic. By way
of background, on March 16, 2020, the
Exchange suspended open outcry
trading to help prevent the spread of
COVID–19 3 and was operating in an allelectronic configuration until June 15,
2020. On June 15, 2020, the Exchange
reopened its trading floor, but 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. In order to
further protect the safety and welfare of
individuals accessing the trading floor
during the COVID–19 pandemic, the
Exchange has determined to implement
on-site COVID–19 testing for all trading
floor personnel, beginning November
16, 2020. The Exchange has contracted
with an independent health care
provider who will conduct the tests,
which the Exchange anticipates will be
conducted twice weekly. The Exchange
proposes to adopt a pass-through fee of
$150 per test for each TPH or associated
person of a TPH 4 that is tested. The
proposed COVID–19 Test Fee allows the
Exchange to offset the costs incurred
with on-site testing. The Exchange also
notes that since the reopening of the
3 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 socialdistancing measures, placed significant limitations
on large gatherings, limited travel, and closed nonessential businesses.
4 For example, a TPH may have personnel other
than Nominees on the floor that need to access the
trading floor. Such persons will also be subject to
testing requirements and will be assessed the
proposed fee.
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18:11 Nov 30, 2020
Jkt 253001
trading floor, the Exchange has, and
continues to, incur other COVID–19
related costs that it has not passed
through in connection with protecting
the health and safety of TPHs and
exchange personnel, including costs
related to daily-deep cleaning. The
Exchange represents that the proposed
fee is a pass-through of the costs to the
Exchange and that the Exchange will
not generate any revenue in excess of
those costs.
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.
The Exchange believes the proposed
COVID–19 Test Fee is reasonable as the
amount of the proposed fee is the same
amount that is assessed to the Exchange
by the independent health care provider
that will be administering the tests. As
noted above, the revenue generated from
the proposed fee will not be more than
the cost to the Exchange for
administering the tests. The Exchange
also notes that to date, it has absorbed
all the costs incurred in connection with
the safety and health protocols it has
taken to ensure the safety and welfare of
individuals access the trading floor,
including daily deep-cleaning of its
facilities. The Exchange believes
administering COVID–19 tests will help
further protect the safety and welfare of
individuals accessing its trading floor.
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78f(b)(4).
The Exchange believes the proposed fee
is equitable and not unfairly
discriminatory because such fee will be
assessed to any TPH or associated
person of a TPH that is tested and
accesses the trading floor. The Exchange
also notes that implementing on-site
COVID–19 testing would benefit all
persons accessing the trading floor as it
is an additional precautionary measure
intended to limit their exposure to
COVID–19 and better ensure their safety
and welfare.
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 that are not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange notes the proposed fee is not
intended to address any competitive
issue, but rather to recoup costs
associated with COVID–19 testing in
order to help protect the safety and
welfare of individuals access the trading
floor. The Exchange does not believe
that the proposed rule change will
impose any burden on intramarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed changes apply equally to all
similarly situated market participants.
The Exchange does not believe that the
proposed rule changes will impose any
burden on intermarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because the proposed changes only
affect trading on the Exchange in
limited circumstances.
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
5 15
6 15
PO 00000
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Fmt 4703
8 15
9 17
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E:\FR\FM\01DEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
01DEN1
Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
IV. Solicitation of Comments
BILLING CODE 8011–01–P
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–
CBOE–2020–111 on the subject line.
Paper Comments
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All submissions should refer to File
Number SR–CBOE–2020–111. 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. All submissions
should refer to File Number SR–CBOE–
2020–111 and should be submitted on
or before December 22, 2020.
18:11 Nov 30, 2020
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90510]
Order Granting Conditional Exemptive
Relief, Pursuant to Section 36 of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) With Respect to
Futures Contracts on the SPIKESTM
Index
November 24, 2020.
Securities and Exchange
Commission.
ACTION: Exemptive order.
AGENCY:
The Minneapolis Grain
Exchange, Inc. (or any successor thereto)
(‘‘MGEX’’) has expressed an interest in
listing and trading contracts for sale for
future delivery on the SPIKESTM Index
(‘‘SPIKES’’) (such futures contracts (and
any options thereon) hereinafter referred
to as the ‘‘Product’’). After careful
consideration, the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) believes that the
Product has the potential to offer
competition with the only comparable
incumbent volatility product in the
market, and is therefore conditionally
exempting the Product from the
definition of ‘‘security future’’ for all
purposes other than as follows: First,
the anti-fraud and anti-manipulation
provisions under the Exchange Act will
continue to apply; second, MGEX will
continue to be subject to the
requirement to register with the
Commission as a national securities
exchange (which may be done pursuant
to a notice filing) and comply with
related amendment and supplemental
filing requirements; and third, MGEX
will continue to be required, in its
capacity as a national securities
exchange, to make available to the
Commission (or its representatives)
books and records relating to
transactions in the Product, upon
request, and to make itself available to
inspection and examination by the
Commission (or its representatives),
upon request. However, because
registration as a notice-registered
national securities exchange is intended
only as a means to facilitate the
Commission’s ability to exercise its
SUMMARY:
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
VerDate Sep<11>2014
[FR Doc. 2020–26403 Filed 11–30–20; 8:45 am]
Jkt 253001
10 17
PO 00000
books and records and examination
authority over the Product, MGEX will
be exempt from compliance with all
other requirements applicable to
national securities exchanges. Taken
together, these actions will allow the
Product to trade as a futures contract on
MGEX, a designated contract market
(‘‘DCM’’) and derivatives clearing
organization (‘‘DCO’’) that is subject to
the jurisdiction of the Commodity
Futures Trading Commission (‘‘CFTC’’),
consistent with the terms and
conditions set forth below.
DATES: This exemptive order is effective
as of December 1, 2020.
FOR FURTHER INFORMATION CONTACT:
Carol McGee, Assistant Director, or
Andrew Bernstein, Senior Special
Counsel, at (202) 551–5870, Office of
Derivatives Policy, Division of Trading
and Markets, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–8010.
I. Introduction
A. Overview of the SPIKES Index
On October 12, 2018, the Commission
issued an order granting approval of a
proposed rule change to allow the
Miami International Securities
Exchange LLC (‘‘MIAX’’) to list and
trade options on SPIKES.1 Although that
order permits MIAX to treat SPIKES as
a broad-based index, as defined under
MIAX’s rules, solely for purposes of
determining the position limits, exercise
limits, and margin requirements that
apply to each options trade, the
Commission stated explicitly that it was
not determining whether SPIKES is a
‘‘narrow-based security index,’’ as
defined in Section 3(a)(55)(B) of the
Exchange Act.2
SPIKES measures the expected 30-day
volatility of the SPDR® S&P 500® ETF
Trust (‘‘SPY’’), and is calculated using a
variance swap methodology that
includes live prices of existing
exchange-traded options on the SPY to
calculate volatility. Specifically, the
SPIKES formula relies on the prices of
standard monthly SPY options that
expire on the third Friday of each
calendar month.3 The formula uses
1 See Order Granting Approval of a Proposed Rule
Change by Miami International Securities
Exchange, LLC to List and Trade on the Exchange
Options on the SPIKESTM Index, Exchange Act
Release No. 84417 (Oct. 12, 2018), 83 FR 52865
(Oct. 18, 2018) (SR–MIAX–2018–14) (‘‘SPIKES
Options Approval Order’’).
2 See SPIKES Options Approval Order, 82 FR at
52867 n. 36.
3 See The SPIKES Volatility Index: Methodology
Guide (available at: https://www.miaxoptions.com/
sites/default/files/spikes-files/SPIKES_
Methodology_Guide.pdf) (‘‘SPIKES Methodology’’).
CFR 200.30–3(a)(12).
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Continued
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]]>Agencies
[Federal Register Volume 85, Number 231 (Tuesday, December 1, 2020)]
[Notices]
[Pages 77295-77297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26403]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90504; File No. SR-CBOE-2020-111]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Its Fees Schedule
November 24, 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 16, 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. 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.
[[Page 77296]]
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 adopt a new COVID-19 Test Fee in
connection with the COVID-19 pandemic. By way of background, on March
16, 2020, the Exchange suspended open outcry trading to help prevent
the spread of COVID-19 \3\ and was operating in an all-electronic
configuration until June 15, 2020. On June 15, 2020, the Exchange
reopened its trading floor, but 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. In order to further protect the safety and welfare of
individuals accessing the trading floor during the COVID-19 pandemic,
the Exchange has determined to implement on-site COVID-19 testing for
all trading floor personnel, beginning November 16, 2020. The Exchange
has contracted with an independent health care provider who will
conduct the tests, which the Exchange anticipates will be conducted
twice weekly. The Exchange proposes to adopt a pass-through fee of $150
per test for each TPH or associated person of a TPH \4\ that is tested.
The proposed COVID-19 Test Fee allows the Exchange to offset the costs
incurred with on-site testing. The Exchange also notes that since the
reopening of the trading floor, the Exchange has, and continues to,
incur other COVID-19 related costs that it has not passed through in
connection with protecting the health and safety of TPHs and exchange
personnel, including costs related to daily-deep cleaning. The Exchange
represents that the proposed fee is a pass-through of the costs to the
Exchange and that the Exchange will not generate any revenue in excess
of those costs.
---------------------------------------------------------------------------
\3\ 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.
\4\ For example, a TPH may have personnel other than Nominees on
the floor that need to access the trading floor. Such persons will
also be subject to testing requirements and will be assessed the
proposed fee.
---------------------------------------------------------------------------
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 the proposed COVID-19 Test Fee is reasonable
as the amount of the proposed fee is the same amount that is assessed
to the Exchange by the independent health care provider that will be
administering the tests. As noted above, the revenue generated from the
proposed fee will not be more than the cost to the Exchange for
administering the tests. The Exchange also notes that to date, it has
absorbed all the costs incurred in connection with the safety and
health protocols it has taken to ensure the safety and welfare of
individuals access the trading floor, including daily deep-cleaning of
its facilities. The Exchange believes administering COVID-19 tests will
help further protect the safety and welfare of individuals accessing
its trading floor. The Exchange believes the proposed fee is equitable
and not unfairly discriminatory because such fee will be assessed to
any TPH or associated person of a TPH that is tested and accesses the
trading floor. The Exchange also notes that implementing on-site COVID-
19 testing would benefit all persons accessing the trading floor as it
is an additional precautionary measure intended to limit their exposure
to COVID-19 and better ensure their safety and welfare.
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 that are not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange notes the
proposed fee is not intended to address any competitive issue, but
rather to recoup costs associated with COVID-19 testing in order to
help protect the safety and welfare of individuals access the trading
floor. The Exchange does not believe that the proposed rule change will
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed changes apply equally to all similarly situated market
participants. The Exchange does not believe that the proposed rule
changes will impose any burden on intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act
because the proposed changes only affect trading on the Exchange in
limited circumstances.
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
[[Page 77297]]
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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2020-111 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-2020-111. 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. All submissions should refer to
File Number SR-CBOE-2020-111 and should be submitted on or before
December 22, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-26403 Filed 11-30-20; 8:45 am]
BILLING CODE 8011-01-P
