Self-Regulatory Organizations; Cboe Futures Exchange, LLC; Notice of a Filing of a Proposed Rule Change To Update Regulatory Independence Policies, 15279-15280 [2021-05825]

Download as PDF Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Notices Exchange to immediately amend its Reserve Order rule to account for scenarios that may occur today and harmonize its Reserve Order rule with that of Nasdaq.16 The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.17 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 shall 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: Commission (‘‘CFTC’’). CFE filed a written certification with the CFTC under Section 5c(c) of the Commodity Exchange Act (‘‘CEA’’) 2 on March 8, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 J. Matthew DeLesDernier, Assistant Secretary. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CFE 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. CFE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. [FR Doc. 2021–05821 Filed 3–19–21; 8:45 am] • 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– BX–2021–005 on the subject line. BILLING CODE 8011–01–P • 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–BX–2021–005. 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 jbell on DSKJLSW7X2PROD with NOTICES 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–BX–2021–005 and should be submitted on or before April 12, 2021. Electronic Comments Paper Comments 16 See supra note 9. According to the Exchange, given its taker-maker model, the circumstance that the proposal is designed to address applies only to securities priced less than $1. 17 For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). VerDate Sep<11>2014 18:46 Mar 19, 2021 Jkt 253001 15279 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–91333; File No. SR–CFE– 2021–005] Self-Regulatory Organizations; Cboe Futures Exchange, LLC; Notice of a Filing of a Proposed Rule Change To Update Regulatory Independence Policies March 16, 2021. Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on March 8, 2021 Cboe Futures Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which Items have been prepared by CFE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFE also has filed this proposed rule change with the Commodity Futures Trading A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose CFE is a subsidiary of Cboe Global Markets, Inc. (‘‘CGM’’). CGM and its exchange subsidiaries previously adopted the Regulatory Independence Policies and make updates to the Regulatory Independence Policies from time to time. The Regulatory Independence Policies are incorporated into the Policies and Procedures Section of the CFE Rulebook in P&P XIII and P&P XIV. CFE previously had a regulatory services agreement (‘‘RSA’’) in place with National Futures Association (‘‘NFA’’) under which NFA acted as a 18 17 1 PO 00000 CFR 200.30–3(a)(12). 15 U.S.C. 78s(b)(7). I. Self-Regulatory Organization’s Description of the Proposed Rule Change CFE is proposing to update CFE Policy and Procedure XIII (Cboe Global Markets, Inc. and Subsidiaries Regulatory Independence Policy for Regulatory Group Personnel) (‘‘P&P XIII’’) and CFE Policy and Procedure XIV (Cboe Global Markets, Inc. and Subsidiaries Regulatory Independence Policy for Non-Regulatory Group Personnel) (‘‘P&P XIV’’) (collectively, ‘‘Regulatory Independence Policies’’). The scope of this filing is limited solely to the application of the proposed rule change to security futures that may be traded on CFE. Although no security futures are currently listed for trading on CFE, CFE may list security futures for trading in the future. The text of the proposed rule change is attached as Exhibit 4 to the filing but is not attached to the publication of this notice. Frm 00097 Fmt 4703 Sfmt 4703 2 7 U.S.C. 7a–2(c). E:\FR\FM\22MRN1.SGM 22MRN1 15280 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Notices jbell on DSKJLSW7X2PROD with NOTICES regulatory services provider to CFE. The Regulatory Independence Policies provide, in relevant part, that they apply with respect to employees of a regulatory services provider that provides regulatory services to a Cboe Company (as defined in the Regulatory Independence Policies) in the same manner that they apply with respect to regulatory employees of a Cboe Company. The Regulatory Independence Policies also make clear that notwithstanding that a Cboe Company has entered into an RSA with a regulatory services provider, the Cboe Company retains ultimate legal responsibility for, and control of, its self-regulatory responsibilities. The current Regulatory Independence Policies reference the RSA between CFE and NFA in relation to these provisions of the Regulatory Independence Policies. The RSA between CFE and NFA expired at the end of 2020. Accordingly, CGM and CFE are making updates to the Regulatory Independence Policies to remove references to the RSA and to NFA’s previous status as a regulatory services provider to CFE. The proposed rule change proposes to revise P&P XIII and P&P XIV to reflect these updates that CGM and CFE are making to the Regulatory Independence Policies. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,3 in general, and furthers the objectives of Sections 6(b)(1) 4 and 6(b)(5) 5 in particular, in that it is designed: • to enable the Exchange to enforce compliance by its Trading Privilege Holders and persons associated with its Trading Privilege Holders with the provisions of the rules of the Exchange, • to prevent fraudulent and manipulative acts and practices, • to promote just and equitable principles of trade, • 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. The proposed rule change retains the current substantive provisions of the Regulatory Independence Policies within CFE’s rules while updating the Regulatory Independence Policies to remove reference to a regulatory service provider that no longer performs regulatory services for CFE. By retaining 15 U.S.C. 78f(b). 4 15 U.S.C. 78f(b)(1). 5 15 U.S.C. 78f(b)(5). 3 VerDate Sep<11>2014 18:46 Mar 19, 2021 the current substantive provisions of the Regulatory Independence Policies within CFE’s rules, the proposed rule change contributes to minimizing conflicts of interest in the decision making process of CFE and to the preservation of the independence of the Exchange’s regulatory group as it performs regulatory functions for the Exchange. The Exchange believes that the proposed rule change is equitable and not unfairly discriminatory in that the Regulatory Independence Policies apply equally in relation to all CFE Trading Privilege Holders. Electronic Comments B. Self-Regulatory Organization’s Statement on Burden on Competition All submissions should refer to File Number SR–CFE–2021–005. 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–CFE–2021–005, and should be submitted on or before April 12, 2021. CFE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, in that the proposed rule change contributes to CFE’s ability to carry out its responsibilities as a self-regulatory organization. The Exchange believes that the proposed rule change will not impose any undue burden on competition because the Regulatory Independence Policies apply equally in relation to all CFE Trading Privilege Holders. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change will become operative on March 22, 2021. At any time within 60 days of the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance with the provisions of Section 19(b)(1) of the Act.6 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: 6 Jkt 253001 PO 00000 15 U.S.C. 78s(b)(1). Frm 00098 Fmt 4703 • 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– CFE–2021–005 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–05825 Filed 3–19–21; 8:45 am] BILLING CODE 8011–01–P 7 Sfmt 9990 17 CFR 200.30–3(a)(73). E:\FR\FM\22MRN1.SGM 22MRN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Pages 15279-15280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05825]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91333; File No. SR-CFE-2021-005]


Self-Regulatory Organizations; Cboe Futures Exchange, LLC; Notice 
of a Filing of a Proposed Rule Change To Update Regulatory Independence 
Policies

March 16, 2021.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 8, 2021 Cboe Futures 
Exchange, LLC (``CFE'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change described 
in Items I, II, and III below, which Items have been prepared by CFE. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons. CFE also has filed this 
proposed rule change with the Commodity Futures Trading Commission 
(``CFTC''). CFE filed a written certification with the CFTC under 
Section 5c(c) of the Commodity Exchange Act (``CEA'') \2\ on March 8, 
2021.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 7 U.S.C. 7a-2(c).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    CFE is proposing to update CFE Policy and Procedure XIII (Cboe 
Global Markets, Inc. and Subsidiaries Regulatory Independence Policy 
for Regulatory Group Personnel) (``P&P XIII'') and CFE Policy and 
Procedure XIV (Cboe Global Markets, Inc. and Subsidiaries Regulatory 
Independence Policy for Non-Regulatory Group Personnel) (``P&P XIV'') 
(collectively, ``Regulatory Independence Policies'').
    The scope of this filing is limited solely to the application of 
the proposed rule change to security futures that may be traded on CFE. 
Although no security futures are currently listed for trading on CFE, 
CFE may list security futures for trading in the future. The text of 
the proposed rule change is attached as Exhibit 4 to the filing but is 
not attached to the publication of this notice.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CFE 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. CFE 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
    CFE is a subsidiary of Cboe Global Markets, Inc. (``CGM''). CGM and 
its exchange subsidiaries previously adopted the Regulatory 
Independence Policies and make updates to the Regulatory Independence 
Policies from time to time. The Regulatory Independence Policies are 
incorporated into the Policies and Procedures Section of the CFE 
Rulebook in P&P XIII and P&P XIV.
    CFE previously had a regulatory services agreement (``RSA'') in 
place with National Futures Association (``NFA'') under which NFA acted 
as a

[[Page 15280]]

regulatory services provider to CFE. The Regulatory Independence 
Policies provide, in relevant part, that they apply with respect to 
employees of a regulatory services provider that provides regulatory 
services to a Cboe Company (as defined in the Regulatory Independence 
Policies) in the same manner that they apply with respect to regulatory 
employees of a Cboe Company. The Regulatory Independence Policies also 
make clear that notwithstanding that a Cboe Company has entered into an 
RSA with a regulatory services provider, the Cboe Company retains 
ultimate legal responsibility for, and control of, its self-regulatory 
responsibilities. The current Regulatory Independence Policies 
reference the RSA between CFE and NFA in relation to these provisions 
of the Regulatory Independence Policies.
    The RSA between CFE and NFA expired at the end of 2020. 
Accordingly, CGM and CFE are making updates to the Regulatory 
Independence Policies to remove references to the RSA and to NFA's 
previous status as a regulatory services provider to CFE. The proposed 
rule change proposes to revise P&P XIII and P&P XIV to reflect these 
updates that CGM and CFE are making to the Regulatory Independence 
Policies.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\3\ in general, and furthers the 
objectives of Sections 6(b)(1) \4\ and 6(b)(5) \5\ in particular, in 
that it is designed:
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(1).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

     to enable the Exchange to enforce compliance by its 
Trading Privilege Holders and persons associated with its Trading 
Privilege Holders with the provisions of the rules of the Exchange,
     to prevent fraudulent and manipulative acts and practices,
     to promote just and equitable principles of trade,
     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.
    The proposed rule change retains the current substantive provisions 
of the Regulatory Independence Policies within CFE's rules while 
updating the Regulatory Independence Policies to remove reference to a 
regulatory service provider that no longer performs regulatory services 
for CFE. By retaining the current substantive provisions of the 
Regulatory Independence Policies within CFE's rules, the proposed rule 
change contributes to minimizing conflicts of interest in the decision 
making process of CFE and to the preservation of the independence of 
the Exchange's regulatory group as it performs regulatory functions for 
the Exchange. The Exchange believes that the proposed rule change is 
equitable and not unfairly discriminatory in that the Regulatory 
Independence Policies apply equally in relation to all CFE Trading 
Privilege Holders.

B. Self-Regulatory Organization's Statement on Burden on Competition

    CFE does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act, in that the proposed rule change contributes 
to CFE's ability to carry out its responsibilities as a self-regulatory 
organization. The Exchange believes that the proposed rule change will 
not impose any undue burden on competition because the Regulatory 
Independence Policies apply equally in relation to all CFE Trading 
Privilege Holders.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change will become operative on March 22, 2021. 
At any time within 60 days of the date of effectiveness of the proposed 
rule change, the Commission, after consultation with the CFTC, may 
summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) of the Act.\6\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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-CFE-2021-005 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-CFE-2021-005. 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-CFE-2021-005, and should be submitted on 
or before April 12, 2021.
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(73).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-05825 Filed 3-19-21; 8:45 am]
BILLING CODE 8011-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.