Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices 80207 

8 15 U.S.C. 78s(b)(2). 

9 Id. 

10 17 CFR 200.30–3(a)(57). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5The proposed rule change will automatically 

sunset on March 31, 2021. If the Exchange seeks to 

provide additional temporary relief from the rule 

requirement identified in this proposal beyond 

March 31, 2021, it will submit a separate rule filing 

to further extend the temporary extension of time. 

6The proposed rule change will automatically 

sunset on December 31, 2021. If the Exchange seeks 

to extend the duration of the temporary proposed 

rule beyond December 31, 2021, it will submit a 

separate rule filing to further renew the temporary 

relief. The Exchange notes that SEC staff has stated 

in guidance that inspections must include a 

physical, on-site review component. See SEC 

National Examination Risk Alert, Volume I, Issue 2 

(November 30, 2011); SEC Division of Market 

Regulation, Staff Legal Bulletin No. 17: Remote 

Office Supervision (March 19, 2004) (stating, in 

part, that broker-dealers that conduct business 

through geographically dispersed offices have not 

adequately discharged their supervisory obligations 

where there are no on-site routine or ‘‘for cause’’ 

inspections of those offices). 

7See Centers for Disease Control and Prevention 

(‘‘CDC’’), International Classification of Diseases, 

Tenth Revision, Clinical Modification, https:// 

www.cdc.gov/nchs/data/icd/Announcement-NewICD-code-forcoronavirus-3-18-2020.pdf; WHO 

Director-General, Opening Remarks at the Media 

Briefing on COVID–19 (March 11, 2020), https:// 

www.who.int/dg/speeches/detail/who-directorgeneral-s-opening-remarksat-the-media-briefing-oncovid-19-11-march-2020; and Centers for Disease 

Control and Prevention, How to Protect Yourself & 

Others (last visited November 12, 2020) https:// 

www.cdc.gov/coronavirus/2019-ncov/preventgettingsick/prevention.html. 

comment letters on the proposed rule 

change. 

Section 19(b)(2) of the Act 8 provides 

that, after initiating disapproval 

proceedings, the Commission shall issue 

an order approving or disapproving the 

proposed rule change not later than 180 

days after the date of publication of 

notice of filing of the proposed rule 

change. The Commission may extend 

the period for issuing an order 

approving or disapproving the proposed 

rule change, however, by not more than 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes the reasons for such 

determination. The date of publication 

of notice of filing of the proposed rule 

change was June 22, 2020. December 19, 

2020, is 180 days from that date, and 

February 17, 2021, is 240 days from that 

date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

this proposed rule change. Accordingly, 

the Commission, pursuant to Section 

19(b)(2) of the Act,9 designates February 

17, 2021, as the date by which the 

Commission shall either approve or 

disapprove the proposed rule change 

(File No. SR–NYSEArca–2020–46). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27199 Filed 12–10–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90583; File No. SR–CBOE– 

2020–112] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating To Adopt 

Temporary Rules To Extend the Time 

by Which Trading Permit Holders must 

Complete Their Office Inspections for 

the Calendar Year 2020 and To Provide 

Temporary Remote Inspection Relief 

for Their Office Inspections for 

Calendar Years 2020 and 2021 

December 7, 2020. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

30, 2020, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Exchange filed the proposal as a 

‘‘non-controversial’’ proposed rule 

change pursuant to Section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(6) thereunder.4 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 adopt 

temporary Rules to extend the time by 

which Trading Permit Holders must 

complete their office inspections for the 

calendar year 2020 and to provide 

temporary remote inspection relief for 

their office inspections for calendar 

years 2020 and 2021. 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 (http://www.cboe.com/ 

AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In light of the operational challenges 

that Trading Permit Holders are facing 

due to the outbreak of the coronavirus 

disease (COVID–19), the Exchange 

proposes to extend the time by which 

Trading Permit Holders must complete 

their calendar year 2020 inspection 

obligations under Rule 8.6(f) (Office 

Inspections) and Rule 9.2(d) (Annual 

Branch Inspections) to March 31, 2021,5

and to provide Trading Permit Holders 

with the option to complete their 

calendar year 2020 and calendar year 

2021 inspection obligations under Rules 

8.16(f) and 9.2(d) remotely, without an 

on-site visit to the office or location.6

The Exchange has observed the 

impact of the COVID–19 pandemic on 

its Trading Permit Holders, investors, 

and the industry generally and 

recognizes that Trading Permit Holders 

are experiencing operational challenges 

with much of their personnel working 

from home due to stay-at-home orders, 

restrictions on businesses and social 

activity imposed in various states, and 

adherence to other social distancing 

guidelines consistent with the 

recommendations of public health 

officials.7 In response, like many 

employers across the United States, 

Trading Permit Holder organizations 


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8See e.g., FINRA Regulatory Notice 20–16 (May 

2020) (‘‘Notice 20–16’’) (describing practices 

implemented by small, mid-sized and large firms to 

transition to, and supervise in, remote work 

environment during the COVID–19 pandemic). 

9The Exchange notes that the term Trading 

Permit Holder includes Trading Permit Holder 

organizations. See Eleventh Amended and Restated 

Bylaws of Cboe Exchange, Inc., Section 1.1(f). 

10The Exchange notes that any location that is 

responsible for supervising the activities of persons 

associated with a Trading Permit Holder or TPH 

organization at one or more non-branch locations of 

such Trading Permit Holder or TPH organization is 

considered to be a branch office. See Rule 3.40(c). 

11A Trading Permit Holder may demonstrate to 

the satisfaction of the Exchange that because of 

proximity, special reporting or supervisory practice, 

other arrangements may satisfy this Rule’s 

requirements for a particular branch office, or that, 

based upon the written policies and procedures of 

such Trading Permit Holder organization providing 

for a systematic risk-based surveillance system, the 

Trading Permit Holder organization submits a 

proposal to the Exchange and receives, in writing, 

an exemption from the requirement in 9.2(d), 

pursuant to Rule 9.2(e). 12See e.g., City of Chicago, Emergency Travel 

Order (November 10, 2020) https:// 

www.chicago.gov/city/en/sites/covid-19/home/ 

emergency-travel-order.html (announcing certain 

travel restrictions applicable to different states 

based on the status of the outbreak in the states and 

how the data compares to the situation in Chicago); 

New York Department of Health, Interim Guidance 

for Quarantine Restrictions on Travelers Arriving in 

New York State Following Out of State Travel 

(November 3, 2020). 

13See CDC, Travel During the COVID–19 

Pandemic (updated October 21, 2020) https:// 

www.cdc.gov/coronavirus/2019-ncov/travelers/ 

travel-during-covid19.html (stating, in part, ‘‘[t]ravel 

increases your chance of getting and spreading 

COVID–19. Staying home is the best way to protect 

yourself and others from COVID–19’’). 

14See CDC, COVIDView, Key Updates for Week 

44, ending October 31, 2020 (November 5, 2020) 

https://www.cdc.gov/coronavirus/2019-ncov/coviddata/pdf/covidview-11-06-2020.pdf (stating that 

surveillance indicators tracking levels of SARSCoV–2 virus circulation and associated illnesses 

have been increasing since September). 

15See supra note 8. 

16See supra note 12. 

17See supra note 14. 

closed their offices to the public, 

transitioned their employees to telework 

arrangements to comply with stay-athome orders, and implemented other 

restrictive measures in an effort to slow 

the spread of COVID–19, such as 

curtailing or eliminating non-essential 

business travel and significantly 

limiting or canceling in-person 

activities.8

Exchange Rules require Trading 

Permit Holders 9 to conduct branch 10

and non-branch office and location 

inspections pursuant to certain annual 

cycles. Specifically, pursuant to Rule 

8.16(f), each Trading Permit Holder 

shall inspect every office or location of 

the Trading Permit Holder at least once 

every three calendar years, the cycle of 

which is contingent on the nature and 

complexity of the securities activities 

for which the office or location is 

responsible, the volume of business 

done, and the number of associated 

persons at each office or location. The 

examination schedule and an 

explanation of the factors considered in 

determining the frequency of the 

examinations in the cycle shall be set 

forth in the Trading Permit Holder’s 

written supervisory procedures. Such 

inspection shall be reasonably designed 

to assist in preventing and detecting 

violations of, and achieving compliance 

with, applicable securities laws and 

regulations, and with applicable 

Exchange rules, and each Trading 

Permit Holder shall retain a written 

record of the dates upon which each 

inspection is conducted, the 

participants in the inspection, and the 

results thereof. Pursuant to Rule 9.2(d), 

each branch office that supervises one 

or more non-branch locations must be 

inspected no less often than once each 

calendar year, unless it qualifies for 

certain exemptions.11 Every branch 

office, without exception, must be 

inspected at least once every three 

calendar-years. Trading Permit Holders 

must maintain written reports of such 

inspections. 

As a result of the compelling health 

and welfare concerns stemming from 

the COVID–19 pandemic, Trading 

Permit Holders are facing potentially 

significant disruptions to their normal 

business operations that include staff 

absenteeism, the increased use of 

remote offices or telework arrangements, 

travel or transportation limitations, and 

technology interruptions or slowdowns. 

Pandemic-related operational changes 

have made it impracticable for Trading 

Permit Holders to conduct the on-site 

inspections pursuant to Rules 8.16(f) 

and 9.2(d) at many or most locations for 

calendar year 2020 because this 

compliance function requires firm 

employees to travel to geographically 

dispersed branch and non-branch office 

locations. Such travel not only has been 

restricted by government orders,12 but 

also puts the health and safety of 

employees at great risk of contracting 

and spreading COVID–19.13 By midyear, with many restrictive measures 

still in place, and in some instances 

additional quarantine requirements 

imposed on interstate travel, on-site 

inspections of Trading Permit Holder 

offices or locations scheduled for 

calendar year 2020 remain pending. The 

acute health and safety concerns related 

to COVID–19 persist, with the number 

of confirmed cases of COVID–19 in the 

U.S. continuing to rise through the fall 

of 2020.14 While Trading Permit Holders 

have continued to supervise all offices 

and locations by, among other things, 

implementing remote supervisory 

practices through novel uses of 

technology as well as existing methods 

of supervision (e.g., supervisory 

checklists, surveillance tools, incident 

trackers, email review, and trade 

exception reports),15 they are still 

experiencing logistical challenges 

related to conducting the onsite portion 

of their inspections due to continuing 

business and governmental restrictions 

and public health concerns.16 As a 

result, the Exchange understands that 

Trading Permit Holders have not yet 

been able to conduct on-site inspections 

scheduled for calendar year 2020, and, 

with no certainty as to when pandemicrelated health concerns will subside and 

restrictions recently re-implemented in 

light of the resurgence of cases during 

the fall of 2020,17 Trading Permit 

Holders may have a considerable 

backlog of 2020 inspections that may be 

difficult, if not impossible, to overcome 

on or before calendar year 2020 ends. 

Additionally, the Exchange recognizes 

that planning on-site inspections for 

calendar year 2021 for Trading Permit 

Holder branch and non-branch offices 

and locations in the current 

environment may be impacted as well. 

In light of pandemic-related 

developments and the approaching end 

of calendar year 2020, the Exchange 

believes it is appropriate to provide 

tailored temporary relief for Trading 

Permit Holders to meet their inspection 

obligations under Rule 8.16(f) and Rule 

9.2(d) for calendar years 2020 and 2021. 

Specifically, the Exchange proposes to 

adopt temporary language in Rule 

8.16(f), and to adopt temporary Rule 

9.2(d)(4), to provide that each Trading 

Permit Holder obligated to complete an 

office inspection pursuant to Rule 

8.16(f) and Rule 9.2(d), respectively, in 

calendar year 2020 will be deemed to 

have satisfied such obligation if the 

applicable inspection is completed on 

or before March 31, 2021. The Exchange 

believes that this proposed temporary 

extension of time is tailored to address 

the needs and constraints on a Trading 

Permit Holder’s operations during the 

COVID–19 pandemic, without 

significantly compromising critical 

investor protection, as potential risks 

that may arise from providing firms 

additional time to comply with their 

inspection obligations due in calendar 

year 2020 are mitigated by their ongoing 

supervisory obligations, off-site 

monitoring, and the temporary nature of 

the extension. The proposed extension 

will provide Trading Permit Holders 

with an opportunity to better manage 

the operational challenges resulting 

from the COVID–19 pandemic and the 


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18The proposed rule change adds language to 

Rule 8.16(f), which provides that the temporary 

remote inspection relief provided in Rule 9.2(d)(5) 

will apply to each Trading Permit Holder obligated 

to complete an office inspection pursuant to Rule 

8.16(f) in calendar year 2020 or calendar year 2021. 

19See Rule 3.40(f). 

20See Rule 8.16(e). 

21Red flags that suggest the increased risk or 

occurrence of violations may include, among other 

events: customer complaints; an unexplained 

increase or change in the types of investments or 

trading concentration that a representative is 

recommending or trading; an unexpected 

improvement in a representative’s production, 

lifestyle, or wealth; questionable or frequent 

transfers of cash or securities between customer or 

third party accounts, or to or from the 

representative; a representative that serves as a 

power of attorney, trustee or in a similar capacity 

for a customer or has discretionary control over a 

customer’s account(s); representative with 

disciplinary records; customer investments in one 

or a few securities or class of securities that is 

inconsistent with firm policies related to such 

investments; churning; trading that is inconsistent 

with customer objectives; numerous trade 

corrections, extensions, liquidations; or significant 

switching activity of mutual funds or variable 

products held for short time periods. See generally 

SEC Division of Market Regulation, Staff Legal 

Bulletin 17: Remote Office Supervision (March 19, 

2004). 

22See generally Rule 8.16; and see Rule 

9.2(g)(5)(A). 

resources needed to fulfill these 

supervisory obligations during the 

pandemic. 

In addition to this, the Exchange 

proposes to extend temporary remote 

inspection relief for calendar year 2020 

and 2021. In particular, the Exchange 

proposes to adopt temporary Rule 

9.2(d)(5), which provides that each 

Trading Permit Holder obligated to 

conduct an inspection of a branch office 

or non-branch location in calendar year 

2020 and calendar year 2021 pursuant 

to Rule 8.16(f) 18 and Rule 9.2(d), as 

applicable, may, subject to the 

requirements of this Rule 9.2.(d)(5), 

satisfy such obligation by conducting 

the applicable inspection remotely, 

without an on-site visit to the office or 

location. In accordance with Rules 

8.16(f) and 9.2(d)(4), inspections for 

calendar year 2020 must be completed 

on or before March 31, 2021. 

Inspections for calendar year 2021 must 

be completed on or before December 31, 

2021. Notwithstanding proposed Rule 

9.2(d)(5), a Trading Permit Holder 

remains subject to the other 

requirements of Rules 8.16(f) and 9.2(d). 

The proposed rule change also adopts 

written supervisory procedures for 

remote inspections in proposed Rule 

9.2(d)(5)(A), which provides that, 

consistent with a Trading Permit 

Holder’s obligations under Rule 8.16(f) 

and Rule 9.2(d), a Trading Permit 

Holder that elects to conduct each of its 

calendar year 2020 or calendar year 

2021 inspections remotely must amend 

or supplement its written supervisory 

procedures to provide for remote 

inspections that are reasonably designed 

to assist in detecting and preventing 

violations of and achieving compliance 

with applicable securities laws and 

regulations, and with applicable 

Exchange Rules. Reasonably designed 

procedures for conducting remote 

inspections of offices or locations 

should include, among other things: (i) 

A description of the methodology, 

including technologies permitted by the 

Trading Permit Holder, that may be 

used to conduct remote inspections; and 

(ii) the use of other risk-based systems 

employed generally by the Trading 

Permit Holder to identify and prioritize 

for review those areas that pose the 

greatest risk of potential violations of 

applicable securities laws and 

regulations, and of applicable Exchange 

Rules. The Exchange believes the 

proposed rule change is consistent with 

a Trading Permit Holder’s existing 

supervisory obligations to establish and 

maintain written supervisory 

procedures for branch office reviews 19

and reviews of non-branch offices and 

locations.20

Proposed temporary Rule 9.2(d)(5)(B) 

provides that the requirement to 

conduct inspections of offices and 

locations is one part of a Trading Permit 

Holder’s overall obligation to have an 

effective supervisory system and, 

therefore, a Trading Permit Holder must 

continue with its ongoing review of the 

activities and functions occurring at all 

offices and locations, whether or not the 

Trading Permit Holder conducts 

inspections remotely. A Trading Permit 

Holder’s use of a remote inspection of 

an office or location will be held to the 

same standards for review as set forth 

under Rule 8.16(f) and Rule 9.2(d). 

Where a Trading Permit Holder’s remote 

inspection of an office or location 

identifies any indicators of irregularities 

or misconduct (i.e., ‘‘red flags’’), 21 the 

Trading Permit Holder may need to 

impose additional supervisory 

procedures for that office or location or 

may need to provide for more frequent 

monitoring or oversight of that office or 

location, or both, including potentially 

a subsequent physical, on-site visit on 

an announced or unannounced basis 

when the Trading Permit Holder’s 

operational difficulties associated with 

COVID–19 abate, nationally or locally as 

relevant, and the challenges a Trading 

Permit Holder is facing in light of the 

public health and safety concerns make 

such on-site visits feasible using 

reasonable best efforts. The temporary 

relief provided by this Rule 9.2(d)(5) 

does not extend to a Trading Permit 

Holder’s inspection requirements 

beyond calendar year 2021 and such 

inspections must be conducted in 

compliance with Rule 9.2(d)(1) through 

(3). The Exchange believes that the 

proposed rule is consistent with a 

Trading Permit Holder’s existing 

supervisory obligations to maintain 

policies and procedures, and a system 

for applying such procedures, 

reasonably designed to achieve 

compliance with, as well as assist in 

preventing and detecting violations of, 

applicable securities laws and 

regulations and Exchange Rules.22

Finally, proposed temporary Rule 

9.2(d)(5)(C) provides for a 

documentation requirement and 

specifically provides that a Trading 

Permit Holder must maintain and 

preserve a centralized record for each of 

calendar year 2020 and calendar year 

2021 that separately identifies: (i) All 

offices or locations that had inspections 

that were conducted remotely; and (ii) 

any offices or locations for which the 

Trading Permit Holder determined to 

impose additional supervisory 

procedures or more frequent 

monitoring, as provided in Rule 

9.2(d)(5)(B) above. A Trading Permit 

Holder’s documentation of the results of 

a remote inspection for an office or 

location must identify any additional 

supervisory procedures or more 

frequent monitoring for that office or 

location that were imposed as a result 

of the remote inspection. The Exchange 

believes that this documentation 

requirement would help readily 

distinguish the offices and locations that 

underwent remote inspections and their 

attendant supervisory procedures, and 

their more frequent monitoring, as 

applicable. 

As noted above, even in the current 

environment, Trading Permit Holders 

have an ongoing obligation to establish 

and maintain a system to supervise the 

activities of their associated persons that 

is reasonably designed to achieve 

compliance with applicable securities 

laws and regulations, and with 

applicable Exchange Rules. The 

proposed amendments to Rule 8.16(f) 

and proposed Rule 9.2(d)(4) and (d)(5) 

are not intended to lessen the 

supervisory obligations prescribed 

under the Exchange Rules. The 

Exchange believes that the proposed 

temporary rule changes, which address 

the needs and constraints on a Trading 

Permit Holder’s operations during the 

COVID–19 pandemic by extending the 

time to conduct inspections for calendar 

year 2020 and permitting firms to 

remotely inspect, subject to specified 

requirements described above, their 


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23See supra notes 5 and 6. 

24See FINRA Rule 3110.16; Securities and 

Exchange Act Release No. 89188 (June 30, 2020), 85 

FR 40713 (July 7, 2020) (SR–FINRA–2020–019); and 

SR–FINRA–2020–040 (filed November 6, 2020) 

available at https://www.finra.org/sites/default/ 

files/2020-11/SR-FINRA-2020-040.pdf. 

25 15 U.S.C. 78f(b). 

26 15 U.S.C. 78f(b)(5). 27 Id. 

28 15 U.S.C. 78s(b)(3)(A). 

29 17 CFR 240.19b–4(f)(6). 

offices and locations for calendar years 

2020 and 2021, would provide Trading 

Permit Holders a way to comply with 

Rules 8.16(f) and 9.2(d) that would not 

materially diminish, and is reasonably 

designed to achieve, the investor 

protection objectives of the inspection 

requirements under these unique 

circumstances. The Exchange notes that 

potential risks that may arise from 

providing Trading Permit Holders 

extended time to conduct their 2020 

inspections and the option to conduct 

their inspections remotely are mitigated 

by their use of technology to meet their 

supervisory obligations on an ongoing 

basis, the unique circumstances under 

which they are operating, and the 

temporary nature of the proposed rules, 

which would expire on March 31, 2021 

and December 31, 2021, respectively.23

The Exchange notes that the proposed 

temporary rules are substantively 

identical to the temporary inspection 

extension and remote relief rules 

recently filed by the Financial Industry 

Regulatory Authority (‘‘FINRA’’).24 The 

Exchange notes too that it will continue 

to monitor the situation and engage with 

Trading Permit Holders, other financial 

regulators, and governmental authorities 

to determine whether further regulatory 

relief or guidance related to Rules 8.16 

and 9.2 may be appropriate. 

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.25 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 26 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 

the Section 6(b)(5) 27 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

that, in light of the impact of COVID– 

19 on the performance of on-site office 

and location inspections pursuant to 

Rules 8.16(f) and 9.2(d), the proposed 

temporary rule changes are intended to 

provide Trading Permit Holders 

additional time to comply with their 

Rule 8.16(f) and 9.2(d) inspection 

obligations due in calendar year 2020 

and a temporary regulatory option to 

conduct inspections of offices and 

locations remotely for calendar years 

2020 and 2021. The proposed temporary 

rule changes do not relieve firms from 

meeting their existing regulatory 

obligations to establish and maintain a 

supervisory system that is reasonably 

designed to achieve compliance with 

applicable securities laws and 

regulations, and with applicable 

Exchange Rules, which directly serve 

investor protection. In a time when 

faced with unique challenges resulting 

from the COVID–19 pandemic, the 

Exchange believes that the proposed 

temporary rule changes provide 

appropriately tailored relief that will 

afford Trading Permit Holders the 

ability to observe the recommendations 

of public health officials to provide for 

the health and safety of their personnel, 

while continuing to serve and promote 

the protection of investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe the proposed 

temporary rule changes will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the Act, because the 

extension for inspections and the 

remote inspection relief will apply 

equally to all Trading Permit Holders 

required to conduct office and location 

inspections in calendar year 2020 and 

2021. The Exchange further does not 

believe that the proposed temporary 

rule changes will impose any burden on 

intermarket competition because it 

relates only to the extension of time for 

2020 inspections and the manner in 

which inspections for 2020 and 2021 

may be conducted. Additionally, and as 

stated above, FINRA has recently 

submitted filings to adopt substantively 

identical temporary inspection relief 

rules for its members. 

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 

Because the foregoing proposed rule 

change does not: 

A. Significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. become operative for 30 days from 

the date on which it was filed, or such 

shorter time as the Commission may 

designate, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 28 and Rule 19b–4(f)(6) 29

thereunder. At any time within 60 days 

of the filing of the proposed rule change, 

the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2020–112 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-2020–112. This file 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices 80211 

30 17 CFR 200.30–3(a)(12). 

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 (http://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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE2020–112 and should be submitted on 

or before January 4, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27202 Filed 12–10–20; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 16805 and # 16806; 

North Carolina Disaster Number NC–00120] 

Administrative Declaration of a 

Disaster for the State of North Carolina 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of North Carolina dated 12/ 

4/2020. 

Incident: Tropical Storm Eta. 

Incident Period: 11/12/2020. 

DATES: Issued on 12/04/2020. 

Physical Loan Application Deadline 

Date: 02/02/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 09/07/2021. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: 

A. Escobar, Office of Disaster 

Assistance, U.S. Small Business 

Administration, 409 3rd Street SW, 

Suite 6050, Washington, DC 20416, 

(202) 205–6734. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. The 

following areas have been determined to 

be adversely affected by the disaster: 

Primary Counties: Alexander 

Contiguous Counties: 

North Carolina: Caldwell, Catawba, 

Iredell, Wilkes 

The Interest Rates are: 

Percednt 

For Physical Damage: 

Homeowners With Credit Available Elsewhere ...................... 2.250 

Homeowners Without Credit 

Available Elsewhere .............. 1.125 

Businesses With Credit Available Elsewhere ...................... 6.000 

Businesses Without Credit 

Available Elsewhere .............. 3.000 

Non-Profit Organizations With 

Credit Available Elsewhere ... 2.000 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 2.000 

For Economic Injury: 

Businesses & Small Agricultural 

Cooperatives Without Credit 

Available Elsewhere .............. 3.000 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 2.000 

The number assigned to this disaster 

for physical damage is 16805 8 and for 

economic injury is 16806 0. 

The State which received an EIDL 

Declaration # is North Carolina. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Jovita Carranza, 

Administrator. 

[FR Doc. 2020–27196 Filed 12–10–20; 8:45 am] 

BILLING CODE 8026–03–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA–2018–0012] 

Privacy Act of 1974; System of 

Records 

AGENCY: Office of Analytics, Review, 

and Oversight, Social Security 

Administration (SSA). 

ACTION: Notice of a modified system of 

records. 

SUMMARY: In accordance with the 

Privacy Act, we are issuing public 

notice of our intent to modify an 

existing system of records entitled, AntiFraud Enterprise Solution (AFES) (60– 

0388), last published on May 3, 2018. 

This notice publishes details of the 

modified system as set forth under the 

caption, SUPPLEMENTARY INFORMATION. 

DATES: The system of records notice 

(SORN) is applicable upon its 

publication in today’s Federal Register. 

We invite public comment on the 

routine uses or other aspects of this 

SORN. In accordance with 5 U.S.C. 

552a(e)(4) and (e)(11), the public is 

given a 30-day period in which to 

submit comments. Therefore, please 

submit any comments by January 11, 

2021. 

ADDRESSES: The public, Office of 

Management and Budget (OMB), and 

Congress may comment on this 

publication by writing to the Executive 

Director, Office of Privacy and 

Disclosure, Office of the General 

Counsel, SSA, Room G–401 West High 

Rise, 6401 Security Boulevard, 

Baltimore, Maryland 21235–6401, or 

through the Federal e-Rulemaking Portal 

at http://www.regulations.gov. Please 

reference docket number SSA–2018– 

0012. All comments we receive will be 

available for public inspection at the 

above address and we will post them to 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Neil 

Etter, Government Information 

Specialist, Privacy Implementation 

Division, Office of Privacy and 

Disclosure, Office of the General 

Counsel, SSA, Room G–401 West High 

Rise, 6401 Security Boulevard, 

Baltimore, Maryland 21235–6401, 

telephone: (410) 966–5855, email: 

Neil.Etter@ssa.gov. 

SUPPLEMENTARY INFORMATION: We are 

modifying the system of records name 

from ‘‘Anti-Fraud Enterprise Solution’’ 

to ‘‘Anti-Fraud (AF) System’’ to reflect 

the system accurately. The AF System is 

an agency-wide and overarching system 

that we use to detect, prevent, and 

mitigate fraud in SSA’s programs. The 

AF System collects and maintains 

personally identifiable information (PII) 


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