81996 Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 

27Applicants are not requesting and the 

Commission is not providing any relief for 

transaction fees received in connection with any 

Co-Investment Transaction. 

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

2 17 CFR 240.19b–4. 

3See Exchange Rule 518, Interpretation and 

Policy .07(a)(1). 

4See Exchange Rule 518, Interpretation and 

Policy .07(a)(3). 

as applicable) 27 received in connection 

with a Co-Investment Transaction will 

be distributed to the participating 

Regulated Entities and Affiliated 

Investors on a pro rata basis based on 

the amount they invested or committed, 

as the case may be, in such CoInvestment Transaction. If any 

transaction fee is to be held by an 

Adviser pending consummation of the 

transaction, the fee will be deposited 

into an account maintained by the 

Adviser at a bank or banks having the 

qualifications prescribed in Section 

26(a)(1) of the 1940 Act, and the account 

will earn a competitive rate of interest 

that will also be divided pro rata among 

the participating Regulated Entities and 

Affiliated Investors based on the amount 

they invest in the Co-Investment 

Transaction. None of the other 

Regulated Entities, Affiliated Investors, 

the applicable Adviser(s) nor any 

affiliated person of the Regulated 

Entities or the Affiliated Investors will 

receive additional compensation or 

remuneration of any kind as a result of 

or in connection with a Co-Investment 

Transaction (other than (a) in the case 

of the Regulated Entities and the 

Affiliated Investors, the pro rata 

transaction fees described above and 

fees or other compensation described in 

condition 2(c)(iii)(B) and (b) in the case 

of the Advisers, investment advisory 

fees paid in accordance with the 

Regulated Entities’ and the Affiliated 

Investors’ investment advisory 

agreements). 

16. The Advisers to the Regulated 

Entities and Affiliated Investors will 

maintain written policies and 

procedures reasonably designed to 

ensure compliance with the foregoing 

conditions. These policies and 

procedures will require, among other 

things, that each of the Advisers to each 

Regulated Entity will be notified of all 

Potential Co-Investment Transactions 

that fall within such Regulated Entity’s 

then-current Objectives and Strategies 

and Board-Established Criteria and will 

be given sufficient information to make 

its independent determination and 

recommendations under conditions 1, 

2(a), 7, 8, 9 and 10. 

17. If the Holders own in the aggregate 

more than 25 percent of the Shares of 

a Regulated Entity, then the Holders 

will vote such Shares in the same 

percentages as the Regulated Entity’s 

other shareholders (not including the 

Holders) when voting on (1) the election 

of directors; (2) the removal of one or 

more directors; or (3) any other matter 

under either the 1940 Act or applicable 

state law affecting the Board’s 

composition, size or manner of election. 

18. Each Regulated Entity’s chief 

compliance officer, as defined in Rule 

38a–1(a)(4), will prepare an annual 

report for its Board each year that 

evaluates (and documents the basis of 

that evaluation) the Regulated Entity’s 

compliance with the terms and 

conditions of the application and the 

procedures established to achieve such 

compliance. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27714 Filed 12–16–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90638; File No. SR–MIAX– 

2020–37] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the Fee Schedule 

December 11, 2020. 

Pursuant to the provisions of 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 1, 2020, Miami 

International Securities Exchange LLC 

(‘‘MIAX Options’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

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 

The Exchange is filing a proposal to 

amend the MIAX Options Fee Schedule 

(‘‘Fee Schedule’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings, at MIAX’s principal office, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to (i) make a 

minor, corrective edit and clarifying 

change to one of the footnotes in Section 

1)b)i) of the Fee Schedule; and (ii) 

amend the exchange groupings of 

options exchanges within the routing 

fee table in Section 1)c) of the Fee 

Schedule. 

Fee Schedule Cleanup 

First, the Exchange proposes to 

amend footnote ‘‘!’’ in Section 1)b)i) of 

the Fee Schedule to make a minor, 

corrective edit and clarifying change. 

Footnote ‘‘!’’ currently provides as 

follows: ‘‘The SPIKES Combination 

portion of a SPIKES Combination Order 

will be charged at the Combination rate 

and other legs will be charged at the 

Complex rate. All fees are per contract 

per leg.’’ Pursuant to Exchange Rule 

518, Interpretation and Policy .07(a), a 

‘‘SPIKES Combination’’ is a purchase 

(sale) of a SPIKES call option and sale 

(purchase) of a SPIKES put option 

having the same expiration date and 

strike price.3 Further, a ‘‘SPIKES Combo 

Order’’ is an order to purchase or sell 

one or more SPIKES option series and 

the offsetting number of SPIKES 

Combinations defined by the delta.4 The 

Exchange proposes to amend footnote 

‘‘!’’ to delete the word ‘‘Combination’’ in 

the phrase ‘‘SPIKES Combination 

Order’’ and replace it with the word 

‘‘Combo.’’ The purpose of this proposed 

change is to provide the correct name of 

the type of order in footnote ‘‘!’’. 

Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 81997 

5See Securities Exchange Act Release No. 88988 

(June 2, 2020), 85 FR 35153 (June 8, 2020) (SR– 

MIAX–2020–13) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Amend 

Exchange Rule 404, Series of Option Contracts 

Open for Trading, Exchange Rule 510, Minimum 

Price Variations and Minimum Trading Increments, 

and Exchange Rule 516, Order Types Defined, To 

Conform the Rules to Section 3.1 of the Plan for the 

Purpose of Developing and Implementing 

Procedures Designed To Facilitate the Listing and 

Trading of Standardized Options). 

6See Cboe BZX Fee Schedule under ‘‘Fee Codes 

and Associated Fees.’’ 

7The OCC amended its clearing fee from $0.01 

per contract side to $0.02 per contract side. See 

Securities Exchange Act Release No. 71769 (March 

21, 2014), 79 FR 17214 (March 27, 2014) (SR–OCC– 

2014–05). 

8See supra note 6. The Cboe BZX fee schedule 

has exchange groupings, whereby several exchanges 

are grouped into the same category, dependent on 

the order’s Origin type and whether it is a Penny 

or Non-Penny class. For example, Cboe BZX fee 

code RR covers routed customer orders in NonPenny classes to NYSE Arca, Cboe C2, Nasdaq ISE, 

Nasdaq Gemini, MIAX Emerald, MIAX PEARL, or 

NOM, with a single fee of $1.25 per contract. Id. 

Update Group of Certain Options 

Exchanges 

Next, the Exchange proposes to 

amend the exchange groupings of 

options exchanges within the routing 

fee table in Section 1)c) of the Fee 

Schedule to adjust certain groupings of 

options exchanges. 

Currently, the Exchange assesses 

routing fees based upon (i) the origin 

type of the order, (ii) whether or not it 

is an order for standard option classes 

in the Penny Interval Program 5 (‘‘Penny 

classes’’) or an order for standard option 

classes which are not in the Penny 

Interval Program (‘‘Non-Penny classes’’) 

(or other explicitly identified classes), 

and (iii) to which away market it is 

being routed. This assessment practice 

is identical to the routing fees 

assessment practice currently utilized 

by the Exchange’s affiliates, MIAX 

PEARL, LLC (‘‘MIAX PEARL’’) and 

MIAX Emerald, LLC (‘‘MIAX Emerald’’). 

This is also similar to the methodologies 

utilized by other competing options 

exchanges, such as the Cboe BZX 

Exchange, Inc. (‘‘Cboe BZX’’), in 

assessing routing fees. Cboe BZX has 

exchange groupings in its fee schedule, 

similar to those of the Exchange, 

whereby several exchanges are grouped 

into the same category, dependent on 

the order’s origin type and whether it is 

a Penny or Non-Penny class.6

As a result of conducting a periodic 

review of the current transaction fees 

and rebates charged by away markets, 

the Exchange has determined to amend 

the exchange groupings of options 

exchanges within the routing fee table to 

better reflect the associated costs of 

routing customer orders to those options 

exchanges for execution. In particular, 

the Exchange proposes to amend the 

seventh ‘‘Routed, Public Customer that 

is not a Priority Customer, Non-Penny 

Program’’ exchange grouping to move 

Nasdaq MRX from the seventh exchange 

grouping into the eighth ‘‘Routed, 

Public Customer that is not a Priority 

Customer, Non-Penny Program’’ 

exchange grouping. The impact of this 

proposed change will be that the routing 

fee for Public Customer orders that are 

not Priority Customer orders in the 

Penny Program, that are routed to 

Nasdaq MRX, LLC (‘‘Nasdaq MRX’’), 

will increase from $1.15 to $1.25. The 

Exchange notes that no options 

exchanges were removed from the 

routing fee table entirely, with the only 

change being the change in 

categorization for Nasdaq MRX. The 

purpose of the proposed rule change is 

to adjust the routing fee for certain 

orders routed to Nasdaq MRX to reflect 

the associated costs for that routed 

execution. 

Accordingly, with the proposed 

change, the routing fee table will be as 

follows: 

Description Fees 

Routed, Priority Customer, Penny Program, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq MRX, Nasdaq PHLX 

(except SPY), Nasdaq BX Options .......................................................................................................................................................... $0.15 

Routed, Priority Customer, Penny Program, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, Nasdaq ISE, 

NOM, Nasdaq PHLX (SPY only), MIAX Emerald, MIAX PEARL ............................................................................................................ 0.65 

Routed, Priority Customer, Non-Penny Program, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq ISE, Nasdaq MRX, 

Nasdaq PHLX, Nasdaq BX Options ........................................................................................................................................................ 0.15 

Routed, Priority Customer, Non-Penny Program, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, MIAX PEARL, MIAX Emerald, Nasdaq GEMX, NOM ........................................................................................................................................................................ 1.00 

Routed, Public Customer that is not a Priority Customer, Penny Program, to: NYSE American, NYSE Arca Options, Cboe BZX Options, BOX, Cboe, Cboe C2, Cboe EDGX Options, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX, MIAX PEARL, MIAX Emerald, 

NOM, Nasdaq PHLX, Nasdaq BX Options .............................................................................................................................................. 0.65 

Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: NYSE American, Cboe, Nasdaq PHLX, Nasdaq 

ISE, Cboe EDGX Options ........................................................................................................................................................................ 1.00 

Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: Cboe C2, BOX, Nasdaq BX Options, NOM, MIAX 

PEARL, MIAX Emerald ............................................................................................................................................................................ 1.15 

Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: Cboe BZX Options, NYSE Arca Options, Nasdaq 

GEMX, Nasdaq MRX ............................................................................................................................................................................... 1.25 

In determining to amend its Routing 

Fees, the Exchange took into account 

transaction fees and rebates assessed by 

the away markets to which the 

Exchange routes orders, as well as the 

Exchange’s clearing costs,7

administrative, regulatory, and technical 

costs associated with routing orders to 

an away market. The Exchange uses 

unaffiliated routing brokers to route 

orders to the away markets; the costs 

associated with the use of these services 

are included in the routing fees 

specified in the Fee Schedule. This 

routing fees structure is not only similar 

to the Exchange’s affiliates, MIAX 

PEARL and MIAX Emerald, but is also 

comparable to the structures in place at 

other competing options exchanges, 

such as Cboe BZX.8 The Exchange’s 

routing fee structure approximates the 

Exchange’s costs associated with routing 

orders to away markets. The percontract transaction fee amount 

associated with each grouping closely 

approximates the Exchange’s all-in cost 

(plus an additional, non-material 

amount) to execute that corresponding 

contract at that corresponding exchange. 

The Exchange notes that in determining 

whether to adjust certain groupings of 

options exchanges in the routing fee 

table, the Exchange considered the 

transaction fees and rebates assessed by 

away markets, and determined to amend 

the grouping of exchanges that assess 

transaction fees for routed orders within 

a similar range. This same logic and 

structure applies to all of the groupings 

in the routing fees table. By utilizing the 

same structure that is utilized by the 

Exchange’s affiliates, MIAX PEARL and 

81998 Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 

9The term ‘‘Member’’ means an individual or 

organization approved to exercise the trading rights 

associated with a Trading Permit. Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(4). 

12 15 U.S.C. 78f(b)(5). 13See supra note 6. 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 17 CFR 240.19b–4(f)(2). 

MIAX Emerald, the Exchange’s 

Members 9 will be assessed routing fees 

in a similar manner. The Exchange 

believes that this structure will 

minimize any confusion as to the 

method of assessing routing fees 

between the three exchanges. The 

Exchange notes that its affiliates, MIAX 

PEARL and MIAX Emerald, will file to 

make the same proposed routing fee 

change for Nasdaq MRX. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 10

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 11 in 

particular, in that it is an equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

issuers and other persons using its 

facilities. The Exchange also believes 

the proposal furthers the objectives of 

Section 6(b)(5) of the Act 12 in that it is 

designed 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 and is not designed to 

permit unfair discrimination between 

customers, issuers, brokers and dealers. 

The Exchange believes the proposed 

change to make a minor, corrective edit 

and clarifying change to footnote ‘‘!’’ in 

Section 1)b)i) of the Fee Schedule 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanism of a free 

and open market and a national market 

system because the proposed change 

will provide greater clarity to Members 

and the public regarding the Exchange’s 

Fee Schedule. The Exchange believes 

that it is in the public interest for the 

Fee Schedule to be accurate and concise 

so as to eliminate the potential for 

confusion. 

The Exchange believes the proposed 

change to the exchange groupings of 

options exchanges within the routing 

fee table furthers the objectives of 

Section 6(b)(4) of the Act and is 

reasonable, equitable and not unfairly 

discriminatory because the proposed 

change will continue to apply in the 

same manner to all Members that are 

subject to routing fees. The Exchange 

believes the proposed change to the 

routing fee table exchange groupings 

furthers the objectives of Section 6(b)(5) 

of the Act and is designed to promote 

just and equitable principles of trade 

and is not unfairly discriminatory 

because the proposed change seeks to 

recoup costs that are incurred by the 

Exchange when routing customer orders 

to away markets on behalf of Members 

and does so in the same manner to all 

Members that are subject to routing fees. 

The costs to the Exchange to route 

orders to away markets for execution 

primarily includes transaction fees and 

rebates assessed by the away markets to 

which the Exchange routes orders, in 

addition to the Exchange’s clearing 

costs, administrative, regulatory and 

technical costs. The Exchange believes 

that the proposed re-categorization of 

certain exchange groupings would 

enable the Exchange to recover the costs 

it incurs to route orders to Nasdaq MRX. 

The per-contract transaction fee amount 

associated with each grouping 

approximates the Exchange’s all-in cost 

(plus an additional, non-material 

amount) to execute the corresponding 

contract at the corresponding exchange. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange’s proposal to make a minor, 

corrective edit and clarifying change to 

footnote ‘‘!’’ in Section 1)b)i) of the Fee 

Schedule is not a competitive change 

but rather is designed to remedy a minor 

non-substantive issue and provide 

added clarity to the Fee Schedule in 

order to avoid potential confusion on 

the part of market participants. In 

addition, the Exchange does not believe 

the proposal will impose any burden on 

inter-market competition as the 

proposal does not address any 

competitive issues and is intended to 

protect investors by providing further 

transparency regarding the Exchange’s 

Fee Schedule. 

The Exchange believes its proposed 

re-categorization of certain exchange 

groupings is intended to enable the 

Exchange to recover the costs it incurs 

to route orders to away markets, 

particularly Nasdaq MRX. The Exchange 

does not believe that this proposal 

imposes any unnecessary burden on 

competition because it seeks to recoup 

costs incurred by the Exchange when 

routing orders to away markets on 

behalf of Members and other exchanges 

have similar routing fee structures.13

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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)(ii) of the Act,14 and Rule 

19b–4(f)(2) 15 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 shall 

institute proceedings to determine 

whether the proposed rule 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– 

MIAX–2020–37 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–MIAX–2020–37. 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 (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 

Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 81999 

16 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange originally filed to amend the Fee 

Schedule on December 1, 2020 (SR–NYSEAMER– 

2020–82) and withdrew such filing on December 7, 

2020. 

5See generally Rule 971.2NY (regarding Complex 

CUBE Auctions). Unless otherwise specified, 

capitalized terms have the same meaning as the 

defined terms in Rule 971.2NY. 

6See Fee Schedule, Section I.G., CUBE Auction 

Fees & Credits. 

7See id., Complex CUBE Auction, note 2 (setting 

forth both the ACE Initiating Participant Rebate and 

the Alternative Initiating Participant Rebate). 

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–MIAX–2020–37, and 

should be submitted on or before 

January 7, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27719 Filed 12–16–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENTS: 85 FR 80875, 

December 14, 2020. 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETINGS: Wednesday, December 

16, 2020 at 10:00 a.m. 

CHANGES IN THE MEETING: The following 

item will not be considered during the 

Open Meeting on Wednesday, December 

16, 2020: 

2. The Commission will consider 

whether to adopt amendments under 

the Investment Advisers Act of 1940 

(the ‘‘Advisers Act’’) to update rules that 

govern investment adviser marketing to 

accommodate the continual evolution 

and interplay of technology and advice, 

while preserving investor protections. 

The Commission will also consider 

whether to adopt amendments to Form 

ADV to provide the Commission with 

additional information about advisers’ 

marketing practices, and corresponding 

amendments to the books and records 

rule under the Advisers Act. 

In addition, the following previously 

scheduled matter will be considered on 

December 21, 2020, during the Open 

Meeting: 

3. The Commission will consider 

whether to approve a proposed rule 

change by New York Stock Exchange 

LLC to amend Chapter One of the Listed 

Company Manual to modify the 

provisions relating to direct listings. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed, please contact the 

Office of the Secretary at (202) 551– 

5400. 

Dated: December 14, 2020. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2020–27867 Filed 12–15–20; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90650; File No. SR– 

NYSEAMER–2020–84] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the NYSE 

American Options Fee Schedule 

December 11, 2020. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on December 

7, 2020, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) 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 selfregulatory organization. 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 

The Exchange proposes to amend the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’) regarding credits and 

incentives relating to Complex 

Customer Best Execution Auctions. The 

Exchange proposes to implement the fee 

changes effective December 7, 2020.4

The proposed change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, 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 

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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to modify 

the Fee Schedule to (1) amend the 

criteria to qualify for a credit available 

to Initiating Participants in a Complex 

Customer Best Execution (‘‘CUBE’’) 

Auction,5 and (2) eliminate an unused 

incentive that had been designed to 

encourage the use of Complex CUBE 

Auctions. The Exchange proposes to 

implement the rule changes on 

December 7, 2020. 

Proposed Modifications to the Fee 

Schedule 

Volume Qualification for Alternative 

Initiating Participant Rebate 

Section I.G. of the Fee Schedule sets 

forth the rates for per contract fees and 

credits for executions associated with 

Single-Leg and Complex CUBE 

Auctions.6 To encourage participants to 

utilize Complex CUBE Auctions, the 

Exchange offers rebates and credits on 

certain initiating Complex CUBE 

volume. Currently, the Exchange offers 

Initiating Participant Rebates for the 

first 1,000 contracts per leg of a 

Complex CUBE Order executed in a 

Complex CUBE Auction.7 The Exchange 

offers an ACE Initiating Participant 

Rebate to ATP Holders that qualify for 

the American Customer Engagement