Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Withdrawal of a Proposed Rule Change To Accommodate Exchange Listing and Trading of Options-Linked Securities, 163-164 [2020-29019]
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Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices
developed based on discussions with
Participants to enable them to bilaterally
match and settle cash claim transactions
at DTC.14 Pursuant to this proposed rule
change, DTC is establishing an aggregate
fee of $3.50 per-matched claim. DTC
believes the fee is equitably allocated
because, as described above, the fee will
be divided evenly between the two
counterparties to a claim, such that each
side of the claim will be charge $1.75
per-matched claim, which reflects the
counterparties’ shared usage of the
service in settling a claim.
DTC believes the fee is reasonable
because, as described above, (i) it is
consistent with DTC’s cost plus lowmargin markup pricing policy; (ii) it is
expected to produce a four-year return
on DTC’s investment in developing
ClaimConnect, compared to a higher fee
that would produce a quicker return,
while helping cover continued
operating expenses for the service; (iii)
it is structured so that both parties to a
claim pay the same amount; (iv) it is
structured to align charges for the
service with actual usage of the service;
and (v) it was set in consideration of a
similar, existing fee (i.e., the Adjustment
Service Fee) but knowing that parties to
a claim will not need to submit
additional claims and pay additional
ClaimConnect fees to reach agreement
on a claim, given the service’s
validation and matching process.
(B) Clearing Agency’s Statement on
Burden on Competition
DTC does not believe that the
ClaimConnect fee will have any impact
on competition.
As described above, DTC believes that
the proposed fee is equitable,
reasonable, and on par with fees for
other DTC services (e.g., the Adjustment
Service Fee) already used by
Participants. As such, there is no
expectation that this particular fee
would cause any competitive
advantages or disadvantages among
Participants. Moreover, although there
is no service in direct competition with
ClaimConnect, Participants are able to
settle their cash claims without using
ClaimConnect, as they did prior to DTC
establishing the service. As such, it will
be up to Participants to decide whether
settling claims via the ClaimConnect
service is worth the cost. If a Participant
concludes that the manner in which it
was settling claims prior to
ClaimConnect (e.g., using internal/
proprietary systems, a third-party
software, or some combination thereof)
is preferable (whether due to cost,
functionality, or some other factor), then
the Participant can simply choose not to
use ClaimConnect and continue to settle
claims away from DTC. Given this
optionality, DTC believes that the
proposed fee should not place any
Participants at a relative disadvantage
compared to other Participants.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
Written comments relating to this
proposed rule change have not been
solicited or received. DTC will notify
the Commission of any written
comments received by DTC.
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) 15 of the Act and paragraph
(f) 16 of Rule 19b–4 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.
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–
DTC–2020–020 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–DTC–2020–020. 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/
14 See
Approval Order, supra note 7.
VerDate Sep<11>2014
17:28 Dec 31, 2020
Jkt 253001
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 DTC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). 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–DTC–
2020–020 and should be submitted on
or before January 25, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–29022 Filed 12–31–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90802; File No. SR–
CboeBZX–2020–042]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Accommodate Exchange Listing
and Trading of Options-Linked
Securities
December 28, 2020.
On May 15, 2020, Cboe BZX
Exchange, Inc. (‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to permit Exchange listing and
trading of Options-Linked Securities.
The proposed rule change was
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15 15
U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b–4(f).
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Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices
published for comment in the Federal
Register on June 3, 2020.3 On July 9,
2020, pursuant to Section 19(b)(2) of the
Act,4 the Commission designated a
longer period within which to approve
the proposed rule change, disapprove
the proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.5
On September 1, 2020, the Commission
instituted proceedings under Section
19(b)(2)(B) of the Act 6 to determine
whether to approve or disapprove the
proposed rule change.7 On November
17, 2020, the Commission designated a
longer period within which to issue an
order approving or disapproving the
proposed rule change.8 The Commission
received no comment letters on the
proposed rule change. On December 23,
2020, the Exchange withdrew the
proposed rule change (SR–CboeBZX–
2020–042).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–29019 Filed 12–31–20; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90809; File No. SR–LTSE–
2020–24]
Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Rule Series 11.600
December 28, 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 December
18, 2020, Long-Term Stock Exchange,
Inc. (‘‘LTSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
3 See Securities Exchange Act Release No. 88968
(May 28, 2020), 85 FR 34270.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 89267,
85 FR 42933 (July 15, 2020).
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No. 89722,
85 FR 55337 (September 4, 2020).
8 See Securities Exchange Act Release No. 90444,
85 FR 74777 (November 23, 2020). The Commission
designated January 29, 2021, as the date by which
the Commission shall either approve or disapprove
the proposed rule change.
9 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17:28 Dec 31, 2020
Jkt 253001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
LTSE proposes a rule change to
amend the Rule Series 11.600, the
Exchange’s compliance rule
(‘‘Compliance Rule’’) regarding the
National Market System Plan Governing
the Consolidated Audit Trail (the ‘‘CAT
NMS Plan’’ or ‘‘Plan’’) 3 to be consistent
with a conditional exemption granted
by the Commission from certain
allocation reporting requirements set
forth in Sections 6.4(d)(ii)(A)(1) and (2)
of the CAT NMS Plan (‘‘Allocation
Exemption’’).4
The text of the proposed rule change
is available at the Exchange’s website at
https://longtermstockexchange.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement on the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
VerDate Sep<11>2014
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization 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 on the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend the Rule Series
11.600 to be consistent with the
Allocation Exemption. The Commission
granted the relief conditioned upon the
Participants’ adoption of Compliance
Rules that implement the alternative
approach to reporting allocations to the
Central Repository described in the
Allocation Exemption (referred to as the
‘‘Allocation Alternative’’).
3 Unless otherwise specified, capitalized terms
used in this rule filing are defined as set forth in
the Compliance Rule.
4 See Securities Exchange Act Rel. No. 90223
(October 19, 2020), 85 FR 67576 (October 23, 2020)
(‘‘Allocation Exemptive Order’’).
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(1) Request for Exemptive Relief
Pursuant to Section 6.4(d)(ii)(A) of the
CAT NMS Plan, each Participant must,
through its Compliance Rule, require its
Industry Members to record and report
to the Central Repository, if the order is
executed, in whole or in part: (1) An
Allocation Report; 5 (2) the SROAssigned Market Participant Identifier
of the clearing broker or prime broker,
if applicable; and the (3) CAT-Order-ID
of any contra-side order(s). Accordingly,
the Exchange and the other Participants
implemented Compliance Rules that
require their Industry Members that are
executing brokers to submit to the
Central Repository, among other things,
Allocation Reports and the SROAssigned Market Participant Identifier
of the clearing broker or prime broker,
if applicable.
On August 27, 2020, the Participants
submitted to the Commission a request
for an exemption from certain allocation
reporting requirements set forth in
Sections 6.4(d)(ii)(A)(1) and (2) of the
CAT NMS Plan (‘‘Exemption
Request’’).6 In the Exemption Request,
the Participants requested that they be
permitted to implement the Allocation
Alternative, which, as noted above, is an
alternative approach to reporting
allocations to the Central Repository.
Under the Allocation Alternative, any
Industry Member that performs an
allocation to a client account would be
required under the Compliance Rule to
submit an Allocation Report to the
Central Repository when shares/
contracts are allocated to a client
account regardless of whether the
Industry Member was involved in
executing the underlying order(s).
Under the Allocation Alternative, a
‘‘client account’’ would be any account
that is not owned or controlled by the
Industry Member.
In addition, under the Allocation
Alternative, an ‘‘Allocation’’ would be
defined as: (1) The placement of shares/
contracts into the same account for
which an order was originally placed; or
(2) the placement of shares/contracts
into an account based on allocation
5 Section 1.1 of the CAT NMS Plan defines an
‘‘Allocation Report’’ as ‘‘a report made to the
Central Repository by an Industry Member that
identifies the Firm Designated ID for any account(s),
including subaccount(s), to which executed shares
are allocated and provides the security that has
been allocated, the identifier of the firm reporting
the allocation, the price per share of shares
allocated, the side of shares allocated, the number
of shares allocated to each account, and the time of
the allocation; provided for the avoidance of doubt,
any such Allocation Report shall not be required to
be linked to particular orders or executions.’’
6 See Letter from the Participants to Vanessa
Countryman, Secretary, Commission, dated August
27, 2020 (the ‘‘Exemption Request’’).
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]]>Agencies
[Federal Register Volume 86, Number 1 (Monday, January 4, 2021)]
[Notices]
[Pages 163-164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29019]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90802; File No. SR-CboeBZX-2020-042]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change To Accommodate Exchange Listing
and Trading of Options-Linked Securities
December 28, 2020.
On May 15, 2020, Cboe BZX Exchange, Inc. (``Exchange'') filed with
the Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to permit Exchange
listing and trading of Options-Linked Securities. The proposed rule
change was
[[Page 164]]
published for comment in the Federal Register on June 3, 2020.\3\ On
July 9, 2020, pursuant to Section 19(b)(2) of the Act,\4\ the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ On September 1, 2020, the Commission instituted proceedings
under Section 19(b)(2)(B) of the Act \6\ to determine whether to
approve or disapprove the proposed rule change.\7\ On November 17,
2020, the Commission designated a longer period within which to issue
an order approving or disapproving the proposed rule change.\8\ The
Commission received no comment letters on the proposed rule change. On
December 23, 2020, the Exchange withdrew the proposed rule change (SR-
CboeBZX-2020-042).
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 88968 (May 28,
2020), 85 FR 34270.
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 89267, 85 FR 42933
(July 15, 2020).
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ See Securities Exchange Act Release No. 89722, 85 FR 55337
(September 4, 2020).
\8\ See Securities Exchange Act Release No. 90444, 85 FR 74777
(November 23, 2020). The Commission designated January 29, 2021, as
the date by which the Commission shall either approve or disapprove
the proposed rule change.
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. 2020-29019 Filed 12-31-20; 8:45 am]
BILLING CODE 8011-01-P
