82560 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

17 15 U.S.C. 78s(b)(3)(A)(ii). 

18 17 CFR 240.19b–4(f)(2). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 89131 

(June 29, 2020), 85 FR 38951 (‘‘Notice’’). 

4 In Amendment No. 1, the Exchange revised the 

proposal to: (i) Clarify that if the virtual trading 

floor is available in a class, the temporary rules in 

CBOE Rule 5.24(e)(1) will not apply to that class 

and (ii) permit clerks to access the virtual trading 

floor. Amendment No. 1 is available at: https://

www.sec.gov/comments/sr-cboe-2020-055/ 

srcboe2020055-7470763-221281.pdf. 

5See Securities Exchange Act Release No. 89514 

(August 10, 2020), 85 FR 49696 (August 14, 2020). 

6 In Amendment No. 2, the Exchange revised the 

proposal to: (i) Eliminate access to the virtual 

trading floor when the physical trading floor is 

operating in a modified state; (ii) provide additional 

description of several aspects of the proposal, 

including access to the virtual trading floor, 

recordkeeping of all chats in the virtual trading 

floor, regulatory surveillance of the virtual trading 

floor; and (iii) make technical and conforming 

changes. Amendment No. 2 is available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-cboe-2020-055/srcboe2020055- 

7741240-223109.pdf. 

7See Securities Exchange Act Release No. 89931 

(September 21, 2020), 85 FR 60504 (September 25, 

2020). 

8 In Amendment No. 3, the Exchange revised the 

proposal to: (i) Provide additional description on 

several aspects of the proposal, including operation 

of the multiple ‘‘zones’’ in the virtual trading floor, 

interaction of Floor Brokers and Maker Makers in 

the virtual trading floor, distribution and use of 

PAR workstations for purposes of participating in 

the virtual trading floor, market participant 

outreach and testing of the virtual trading floor, use 

of chat functionality in the virtual trading floor, 

regulatory surveillance of the virtual trading floor; 

and (ii) make technical and conforming changes. 

Amendment No. 3 is available on the Commission’s 

website at: https://www.sec.gov/comments/sr-cboe2020-055/srcboe2020055-7967230-225008.pdf. 

9See letter to Secretary, Commission, from Kevin 

Kennedy, Senior Vice President, North American 

Markets, Nasdaq, dated July 10, 2020, available at 

https://www.sec.gov/comments/sr-cboe-2020-055/ 

srcboe2020055-7409704-219196.pdf (‘‘Nasdaq 

Letter’’). The Nasdaq Letter expressed support for 

CBOE’s proposal as described in the Notice, but 

raised questions about whether options classes 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 17 and Rule 

19b–4(f)(2) 18 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–MEMX–2020–15 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–MEMX–2020–15. 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 

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–MEMX–2020–15 and 

should be submitted on or before 

January 8, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27841 Filed 12–17–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90658; File No. SR–CBOE– 

2020–055] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of 

Amendment No. 3 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendment No. 3, To Amend Rule 5.24 

December 14, 2020. 

I. Introduction 

On June 12, 2020, Cboe Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘CBOE’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to adopt Rule 5.24(e)(3) to make 

available an audio and video 

communication program to serve as a 

‘‘virtual trading floor’’ in one or more 

option classes during regular trading 

hours if the physical trading floor is 

inoperable. The proposed rule change 

was published for comment in the 

Federal Register on June 29, 2020.3 On 

July 23, 2020, the Exchange filed 

Amendment No. 1 to the proposed rule 

change.4 On August 10, 2020, the 

Commission designated a longer period 

for Commission action on the proposed 

rule change, until September 27, 2020.5

On August 21, 2020, the Exchange filed 

Amendment No. 2 to the proposed rule 

change, which replaced and superseded 

the proposed rule change, as modified 

by Amendment No. 1.6 On September 

21, 2020, the Commission published 

notice of Amendment No. 2 to the 

proposed rule change and instituted 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change, as modified by Amendment 

No. 2.7 On November 2, 2020, the 

Exchange filed Amendment No. 3 to the 

proposed rule change, which replaced 

and superseded the proposed rule 

change, as modified by Amendment No. 

2.8 The Commission has received one 

comment letter on the proposal.9 The 


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should be able to trade in both virtual and floorbased trading environments, whether the virtual 

trading floor should require the presence of a 

minimum number of Market-Makers to ensure 

liquidity, and whether access to the virtual trading 

floor is limited to current members on CBOE’s floor. 

The description in the next section of the proposed 

rule change, as modified by Amendment No. 3, 

addresses the questions raised by the Nasdaq Letter 

by explaining that: (i) The proposal only allows 

access to the virtual trading floor when the physical 

trading floor is inoperable, (ii) there is no minimum 

number of Market-Makers required to be present on 

the virtual trading floor, consistent with the current 

operation on the physical trading floor, and (iii) 

current and future Trading Permit Holders 

(‘‘TPHs’’) may be authorized to receive access to the 

virtual trading floor. 

10See CBOE Rule 5.24(e). 11See id. 12Chapter 5, Section G of the Exchange’s 

rulebook sets forth the rules and procedures for 

manual order handling and open outcry trading on 

the Exchange. 13See CBOE Rule 5.24(e)(1). The Exchange 

recently adopted several rule changes that would 

apply during a time in which the trading floor in 

inoperable, which are effective until December 31, 

2020. See, e.g., Securities Exchange Act Release 

Nos. 88386 (March 13, 2020), 85 FR 15823 (March 

19, 2020) (SR–CBOE–2020–019); 88447 (March 20, 

2020) (SR–CBOE–2020–023); 88490 (March 26, 

2020), 85 FR 18318 (April 1, 2020) (SR–CBOE– 

2020–026); 88530 (March 31, 2020), 85 FR 19182 

(April 6, 2020) (SR–CBOE–2020–031); 88886 (May 

15, 2020), 85 FR 31008 (May 21, 2020) (SR–CBOE– 

2020–047); 89307 (July 14, 2020), 85 FR 43938 (July 

20, 2020) (SR–CBOE–2020–066); 89789 (September 

8, 2020), 85 FR 56658 (September 14, 2020) (SR– 

CBOE–2020–081); and 90174 (October 14,2020), 85 

FR 66617 (October 20, 2020) (SR–CBOE–2020–092). 

14See Amendment No. 3, supra note 8, at 5. 

15See id. 

16Similar to open outcry trading on the physical 

trading floor, open outcry trading on the virtual 

trading floor will be available only during Regular 

Trading Hours. See proposed CBOE Rule 5.24(e)(3). 

17See Amendment No. 3, supra note 8, at 7, n.7. 

18The Exchange states that this is similar to the 

Exchange’s authority with respect to open outcry 

trading on the physical trading floor. See id. at 7. 

19See proposed CBOE Rule 5.24(e)(3)(D). A 

‘‘zone’’ is a virtual room within the communication 

program in which a subset of participants on the 

virtual trading floor will be visible. See Amendment 

No. 3, supra note 8, at 7, n.9. 

20See proposed CBOE Rule 5.24(e)(3)(D)(i). 

21See proposed CBOE Rule 5.24(e)(3)(D)(ii). The 

Exchange states that it plans to have eight zones for 

the SPX pit. See Amendment No. 3, supra note 8, 

at 7. The Exchange represents that, similar to the 

arrangement of a physical trading pit, it will assign 

each Floor Broker to a zone, and each Market-Maker 

may determine in which zone it will be present. See 

id. at 7–8. 

22See proposed CBOE Rule 5.24(e)(3)(D)(ii). The 

Exchange states that this arrangement is similar to 

the arrangement of a physical trading pit. See 

Amendment No. 3, supra note 8, at 8. 23See proposed CBOE Rule 5.24(e)(3)(D)(iii). The 

Exchange believes that the blotter will benefit 

virtual trading floor participants due to the 

limitations of communication software (such as 

limitations on how many people may be heard at 

the same time in a virtual pit or potential buffering 

or echoing). See Amendment No. 3, supra note 8, 

at 16. Additionally, the information that will be 

displayed in the blotter is already retained as part 

of the PAR order audit trail. See id. at 18, n.26. 

24See id. at 9. 

25See id. 

26See id. 

27See id. 

28See supra note 13 and accompanying text. 

29See supra note 12. 

30See proposed CBOE Rule 5.24(e)(3). 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as modified by Amendment No. 

3, from interested persons and is 

approving the proposed rule change, as 

modified by Amendment No. 3, on an 

accelerated basis. 

II. Description of the Proposed Rule 

Change, as Modified by Amendment 

No. 3 

Rule 5.24(e) currently provides that if 

the Exchange trading floor becomes 

inoperable, the Exchange will continue 

to operate in a screen-based only 

environment using a floorless 

configuration of the system that is 

operational while the trading floor 

facility is inoperable. The Exchange 

would operate using that configuration 

only until the Exchange’s trading floor 

facility became operational.10 Open 

outcry on the physical trading floor 

would not be available in the event the 

trading floor becomes inoperable.11 In 

the event that the trading floor becomes 

inoperable, CBOE Rule 5.24(e)(1) 

provides that trading will be conducted 

pursuant to all applicable system rules, 

except that open outcry rules would not 

be in force, including but not limited to 

the rules (or applicable portions) in 

Chapter 5, Section G,12 and that all nontrading rules of the Exchange would 

continue to apply.13

On March 16, 2020, the Exchange 

suspended open outcry trading to help 

prevent the spread of COVID–19.14 The 

Exchange operated in an all-electronic 

configuration until it reopened its 

trading floor on June 15, 2020, at which 

time the Exchange returned to operating 

as a hybrid exchange with electronic 

and open outcry trading.15 However, 

given the uncertainty related to the 

ongoing pandemic, which includes the 

possibility of the Exchange having to 

close its trading floor again, and given 

the possibility that the Exchange’s 

trading floor may be inoperable for other 

reasons in the future, the Exchange now 

has proposed to adopt Rule 5.24(e)(3) to 

permit it to make available an audio and 

video communication program to serve 

as a ‘‘virtual trading floor’’ in one or 

more option classes 16 if the physical 

trading floor is inoperable. The 

Exchange represents that if it were to 

determine to use the virtual trading 

floor in a more permanent manner for 

reasons other than business continuity 

purposes, the Exchange would submit a 

separate rule filing to the Commission.17

In the program, the Exchange would 

create ‘‘virtual trading pits,’’ in each of 

which the Exchange would determine 

which options class(es) would be 

available for trading.18 TPHs would 

access virtual trading pits via 

‘‘zones.’’ 19 Multiple classes may trade 

in a single virtual trading pit, available 

for trading in a single zone.20 The 

Exchange may determine to divide a 

virtual trading pit for a single class into 

multiple zones given the number of 

TPHs generally present in the trading 

pit for that class on the physical trading 

floor.21 The Exchange will assign each 

Floor Broker to a zone, and each MarketMaker may determine in which zone it 

will be present.22 In each zone, the 

Exchange will make visible an 

electronic blotter containing a running 

list of unexecuted orders that have been 

represented by Floor Brokers in that 

zone.23 The Exchange believes that the 

proposed configuration of the virtual 

trading pit is a practical replication of 

the structure of the physical trading 

floor that will allow market participants 

to interact in nearly the same manner as 

they do on the physical trading floor.24

In a virtual trading pit, each TPH 

authorized to access the virtual trading 

floor (as described below) that enters the 

virtual trading pit would be visible to all 

other TPHs in that virtual trading pit.25

Additionally, all TPHs in a virtual 

trading pit may speak to each other 

through the proposed communication 

program.26 The Exchange states that this 

will provide the same communication 

capabilities TPHs generally have on the 

physical trading floor so that they may 

conduct open outcry trading on the 

virtual trading floor in the same manner 

as they do on the physical trading 

floor.27

Proposed Rule 5.24(e)(3) states that if 

the Exchange makes a virtual trading 

floor available in a class, the rules in 

Rule 5.24(e)(1) will not apply to that 

class.28 All rules related to open outcry 

trading, including those in Chapter 5, 

Section G,29 will apply to open outcry 

trading on the virtual trading floor in 

the same manner as they apply to open 

outcry trading on the physical trading 

floor, except as the context otherwise 

requires and as set forth in proposed 

subparagraph (e)(3).30 Proposed 

subparagraph (e)(3)(A) lists certain 

terms in the rules related to open outcry 

trading on the physical trading floor that 

would be deemed to refer to 

corresponding terms related to open 

outcry trading on the virtual trading 

floor. Specifically: 

• References in the rules to the 

‘‘floor,’’ ‘‘trading floor,’’ and ‘‘Exchange 

floor’’ (and any other terms with the 

same meaning) will be deemed to refer 

to the ‘‘virtual trading floor.’’ 


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31See Amendment No. 3, supra note 8, at 11. The 

Exchange states that, currently, admission to the 

physical trading floor is limited to TPHs, Exchange 

employees, clerks employed by TPHs and registered 

with the Exchange, service personnel, Exchange 

visitors that receive authorized admission to the 

trading floor pursuant to Exchange policy, and any 

other persons that the Exchange authorizes 

admission to the trading floor. See id. The proposed 

rule change excludes service personnel and visitors 

from accessing the virtual trading floor. See id. at 

12. 

32TPHs and clerks will not be required to display 

badges on the virtual trading floor. See proposed 

CBOE Rule 5.24(e)(3)(B). The virtual trading floor 

program will identify the TPH organization of each 

participant in a virtual trading pit. See Amendment 

No. 3, supra note 8, at 13, n.19. 

33The Exchange states that it does not anticipate 

granting any other individuals with access to the 

virtual trading floor outside of TPHs and Exchange 

personnel; however, the Exchange believes the 

flexibility to permit Exchange personnel to access 

the virtual trading floor is appropriate, such as to 

permit access to make updates to the 

communication program. See id. at 12, n.15. 

34See proposed CBOE Rule 5.24(e)(3)(B). This 

includes TPHs (and individuals that represent TPH 

organizations) that are currently authorized to 

perform trading floor functions, as well as any TPHs 

that receive such authorization in the future. See 

Amendment No. 3, supra note 8, at 12. 

35See proposed CBOE Rule 5.24(e)(3)(B). The 

Exchange will track which individuals participate 

in the virtual trading floor, including when they log 

in and log out. See id. 

36See Amendment No. 3, supra note 8, at 12. 

37See id. at 15. 

38The Exchange states that it has already 

distributed to TPHs the necessary equipment for 

accessing PAR for purposes of the virtual trading 

floor. See id. at 13–14. The Exchange represents that 

the PAR will be used and work in the same manner 

for the virtual trading floor as it is on the physical 

trading floor. See id. at 14. For more detail on the 

ways in which a Floor Broker may use a PAR 

workstation for the virtual trading floor in the same 

manner as it would on the physical trading floor, 

see pages 14–15 of Amendment No. 3. 

39The Exchange states that this would include 

requirements related to audit trail and record 

retention, prohibition on using any device for the 

purpose of recording activities in the virtual trading 

pit or maintaining an open line of continuous 

communication whereby a non-associated person 

not located in the trading crowd may continuously 

monitor the activities in the trading crowd, and the 

prohibition on using devices to disseminate quotes 

or last sale reports. See id. at 15. 

40The Exchange states that it will announce with 

sufficient advance notice to all TPHs any 

determination to require bids and offers to be 

expressed in a chat within the communication 

program pursuant to Rule 1.5 (such as by Exchange 

notice or regulatory circular). See id. at 16, n.25. 

41The Exchange will retain records of all chats, 

participant logs, and any other records related to 

the virtual trading floor that are subject to the 

Exchange’s record retention obligations under the 

Act. See proposed CBOE Rule 5.24(e)(3)(F). The 

Exchange states that it does not currently plan to 

make video recordings of the virtual trading floor; 

however, if the Exchange determines to make such 

recordings, it would retain those video recordings 

in accordance with its record retention obligations. 

See Amendment No. 3, supra note 8, at 18. 

Moreover, the Exchange represents that it will 

disable the ability of TPHs to record the virtual 

trading floor through the communication program. 

See id. at 18, n.28. 

42See id. at 18–19. 

43 15 U.S.C. 78f. 

44 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

45 15 U.S.C. 78f(b)(5). 

• References in the rules to ‘‘pit,’’ 

‘‘trading station,’’ and ‘‘trading post’’ 

(and any other terms with the same 

meaning) will be deemed to refer to a 

‘‘virtual trading pit.’’ 

• References in the rules to ‘‘physical 

presence’’ (any other terms with the 

same meaning) in a pit or on the trading 

floor will be deemed to refer to 

‘‘presence’’ in a virtual trading pit or on 

the virtual trading floor, respectively. 

• The terms ‘‘in-crowd market 

participant’’ and ‘‘ICMP’’ mean a 

Market-Maker, a Designated Primary 

Market-Maker (‘‘DPM’’) or Lead MarketMaker (‘‘LMM’’) with an allocation in a 

class, or a Floor Broker or PAR Official 

representing an order in a virtual pit on 

the virtual trading floor. 

• References to an ‘‘on-floor DPM’’ or 

‘‘on -floor LMM’’ will be deemed to 

refer to a DPM or LMM, respectively, in 

a virtual pit for its allocated class(es). 

In addition, proposed Rule 5.24(e) 

states that the temporary rules set forth 

in Rule 5.24(e)(1) will not be applicable 

to trading in classes in which the 

Exchange makes a virtual trading floor 

available when the physical trading 

floor is inoperable. As noted above, the 

temporary rules in Rule 5.24(e)(1) are 

intended to make electronic trading 

more similar to open outcry trading 

when open outcry trading is not 

available by replicating certain features 

of open outcry trading in an electronic 

environment. However, the virtual 

trading floor will permit open outcry 

trading to continue in a separate 

environment if the physical trading 

floor becomes inoperable. Therefore, 

trading opportunities that are generally 

only available in open outcry trading 

will continue to be available on the 

virtual trading floor, making the 

temporary rules in Rule 5.24(e)(1) 

unnecessary when the virtual trading 

floor is available. 

The Exchange represents that access 

to the virtual trading floor will be 

substantially similar to access to the 

physical trading floor.31 Proposed Rule 

5.24(e)(3)(B) states that admission to the 

virtual trading floor is limited to TPHs, 

clerks,32 Exchange employees, and any 

other persons the Exchange authorizes 

admission to the virtual trading floor.33

The Exchange will provide access to the 

virtual trading floor to TPHs the 

Exchange has approved to perform a 

trading floor function (including Floor 

Brokers and Market-Makers).34 Each 

authorized individual will receive one 

log-in to the virtual trading floor and 

may be present in only one virtual 

trading pit/zone at one time.35 The 

Exchange will not require a minimum 

number of Market-Makers to be present 

for the virtual trading floor, which is 

consistent with the manner of operation 

on the physical trading floor.36

Proposed Rule 5.24(e)(3)(C) states that 

TPHs may use any equipment (e.g., any 

hardware or software related to a phone, 

system, or other device, including an 

instant messaging system, email system, 

or similar device) to access the virtual 

trading floor and do not need to register 

devices they use while on the virtual 

trading floor.37 TPHs must use 

Exchange-provided equipment to access 

PAR workstations while transacting on 

the virtual trading floor.38 The Exchange 

states that the requirements in Rule 

5.81(a) would otherwise apply in the 

same manner to the virtual trading floor 

as it does to the physical trading floor 

(to the extent the context requires).39

Proposed Rule 5.24(e)(3)(E) provides 

that the Exchange may determine to 

require any Market-Maker or Floor 

Broker in a virtual trading pit/zone that 

wants to trade against an order 

represented for execution to express its 

bid or offer in a chat available in the 

virtual trading pit.40 Additionally, chats 

will be visible to all participants in a 

zone and will not be permitted directly 

between individual participants.41

Finally, if the virtual trading floor 

encounters issues that cause it to 

become unavailable, the Exchange will 

operate in an all-electronic 

configuration, pursuant to CBOE Rule 

5.24(e), until the communication 

program is available again.42

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change, as 

modified by Amendment No. 3, is 

consistent with the requirements of the 

Act,43 and the rules and regulations 

thereunder applicable to a national 

securities exchange.44 In particular, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 3, is consistent with Section 6(b)(5) 

of the Act,45 which requires, among 

other things, that the rules of a national 

securities exchange be designed 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. 


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46The Exchange states that, while the recent 

amendments to Rule 5.24(e)(1) allowed allelectronic trading to occur more similarly to open 

outcry trading, an all-electronic trading 

environment cannot fully replicate open outcry 

trading. See Amendment No. 3, supra note 8, at 5. 

The Exchange states that from January 2 through 

March 13, 2020 (the last day on which the trading 

floor was open), complex orders for SPX options 

with more than six legs represented approximately 

5.3% of the total SPX complex order average daily 

volume (‘‘ADV’’) during that timeframe. See id. at 

6. However, from March 16, 2020 (the first day on 

which the trading floor was closed) through April 

30, 2020, complex orders for SPX options with 

more than six legs represented only approximately 

2.2% of the total SPX complex order ADV during 

that similar timeframe. See id. Similarly, the 

corresponding ADV percentages for VIX options 

complex orders were approximately 6.2% (prior to 

the trading floor closing) and 1.8% (after the trading 

floor closing), respectively. See id. 

47See id. at 19. 

48See Amendment No. 3, supra note 8, at 9. 

49See id. at 19. 

50See id. at 20 

51See id. 

52See id. 

53See id. at 18. The Exchange represents that an 

Exchange employee will be available in each zone 

to provide technical and operational support (in 

addition to regular Exchange support staff for floor 

operations) if participants in the virtual trading 

floor need assistance. See id. 

As discussed above, CBOE proposes 

to adopt rules for a virtual trading floor 

for when the physical trading floor is 

inoperable. Currently, Rule 5.24(e) 

provides that, if the physical trading 

floor becomes inoperable, the Exchange 

will operate in all-electronic screenbased only environment. The proposed 

virtual trading floor is designed to 

facilitate open outcry trading on the 

Exchange when the physical trading 

floor is inoperable, which would allow 

trading on the Exchange to occur more 

similarly to physical floor trading than 

the current rules for all-electronic 

trading. Among other things, the 

Exchange believes that the proposed 

enhancement to its business continuity 

plans through the implementation of a 

virtual trading floor environment would 

ameliorate some of the features in open 

outcry trading that are difficult to 

replicate in an all-electronic 

environment, particularly the small 

segment of trading strategies that benefit 

from human interactions to negotiate 

pricing and to facilitate executions of 

large orders and high-risk and 

complicated trading strategies.46 The 

Exchange believes that the proposed 

rule change may facilitate continued 

trading of these orders if and when the 

trading floor is inoperable. As a result, 

the Exchange believes that providing 

continuous access to open outcry 

trading when the physical trading floor 

becomes inoperable will remove 

impediments to a free and open market 

and will ultimately benefit investors, 

particularly those executing high-risk 

and complex trading strategies. 

The Commission finds that the 

proposed implementation of the virtual 

trading floor for business continuity 

purposes is consistent with the Act. The 

Commission believes that the proposed 

virtual trading floor will allow the 

Exchange to provide a trading 

environment to TPHs that is reasonably 

designed to facilitate open outcry 

trading when circumstances prevent 

physical human interaction. The 

Commission notes that the Exchange 

has conducted several town halls with 

TPHs on the virtual trading floor and 

made the functionality available for 

testing so that the Exchange will be 

ready to implement it if necessary. The 

Exchange states that it has received 

positive feedback from TPHs regarding 

the tool and will continue to make 

updates as necessary and appropriate in 

response to member feedback.47 As a 

result, the Commission finds that the 

virtual trading floor is reasonably 

designed to allow continuous access to 

open outcry trading, which will remove 

impediments to a free and open market 

and will ultimately benefit investors, 

particularly those facilitating executions 

of large orders and complex trading 

strategies. 

Additionally, the design of the virtual 

trading zones to closely replicate the 

arrangement of the physical trading 

floor will facilitate the rollout of the 

virtual trading floor to TPHs and help 

remove impediments to a free and open 

market when the physical trading floor 

is inoperable. Virtual trading zones will 

provide flexibility for a Market-Maker to 

enter and exit zones for particular 

trading interest, which may make it 

easier for a Market-Maker to trade with 

Floor Brokers that are otherwise too far 

away on the physical trading floor for 

them to trade (as movement inside a 

trading pit is practically not possible, 

and is currently not permitted while the 

physical trading floor operates in a 

modified state). 

Furthermore, the Commission finds 

that the design of the virtual trading 

floor will help prevent fraudulent and 

manipulative acts and practices, and 

promote just and equitable principles of 

trade by requiring that the Rules and 

regulatory requirements apply in the 

substantially the same manner as open 

outcry of the physical trading floor. 

Specifically, the Exchange represents 

that all Rules related to open outcry 

trading, including those in Chapter 5, 

Section G, will apply to open outcry 

trading on the virtual trading floor.48 In 

addition, all risk controls and price 

protection mechanisms in Rule 5.34 that 

currently apply to open outcry trading 

will apply in the same manner on the 

virtual trading floor.49 TPHs 

participating on the virtual trading floor 

will be subject to the same regulatory 

requirements on the virtual trading floor 

as they are on the physical trading floor, 

including those set forth in Chapters 8 

and 9 of the Rules.50 Orders on the 

virtual trading floor will be 

systematized and represented, and 

transactions reported, in the same 

manner as on the physical trading 

floor.51 CBOE’s Regulatory Division staff 

will continue to utilize preexisting floor 

surveillances to surveil for the activity 

occurring on the virtual trading floor 

and will access the virtual trading floor 

as necessary and appropriate, including 

records of any chats, participant logs, 

and any other records related to the 

virtual trading floor consistent with the 

Exchange’s record retention obligations 

under the Act.52 Finally, Floor Officials 

will also have access to all zones in the 

virtual trading floor and will retain the 

same authority to act in the virtual 

trading floor as they do on the physical 

trading floor.53

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether Amendment No. 3 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–2020–055 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–2020–055. 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 


khammond on DSKJM1Z7X2PROD with NOTICES
82564 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

54See Amendment No. 3, supra note 8. 

55 15 U.S.C. 78s(b)(2). 

56 Id. 

57 17 CFR 200.30–3(a)(57) and (58). 

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–CBOE–2020–055 and 

should be submitted by January 8, 2021. 

Rebuttal comments should be submitted 

by January 22, 2021. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 3 

The Commission finds good cause for 

approving the proposed rule change, as 

amended by Amendment No. 3, prior to 

the 30th day after the date of 

publication of notice in the Federal 

Register. Amendment No. 3 provided 

additional detail and clarity on several 

points.54 Specifically, the Exchange 

revised the proposal to provide 

additional description on several 

aspects of the proposal, including 

operation of the multiple ‘‘zones’’ in the 

virtual trading floor, interaction of Floor 

Brokers and Maker Makers in the virtual 

trading floor, distribution and use of 

PAR workstations for purposes of 

participating in the virtual trading floor, 

market participant outreach and testing 

of the virtual trading floor, use of chat 

functionality in the virtual trading floor, 

regulatory surveillance of the virtual 

trading floor, and make technical and 

conforming changes. Amendment No. 3 

does not change the substance of the 

proposed rule change, but merely adds 

detail and clarification to several items 

of the proposal. Accordingly, the 

Commission finds good cause for 

approving the proposed rule change, as 

amended, on an accelerated basis, 

pursuant to Section 19(b)(2) of the 

Act.55

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,56 that the 

proposed rule change, as modified by 

Amendment No. 3 (SR–CBOE–2020– 

055), be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.57

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27839 Filed 12–17–20; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #16710 and #16711; 

Oregon Disaster Number OR–00111] 

Presidential Declaration Amendment of 

a Major Disaster for Public Assistance 

Only for the State of Oregon 

AGENCY: Small Business Administration. 

ACTION: Amendment 2. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of OREGON (FEMA–4562–DR), 

dated 10/20/2020. Incident: Wildfires 

and Straight-line Winds. Incident 

Period: 09/07/2020 through 11/03/2020. 

DATES: Issued on 12/11/2020. 

Physical Loan Application Deadline 

Date: 01/13/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 07/20/2021. 

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: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of Oregon, 

dated 10/20/2020, is hereby amended to 

extend the deadline for filing 

applications for physical damage as a 

result of this disaster to 01/13/2021. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Cynthia Pitts, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2020–27920 Filed 12–17–20; 8:45 am] 

BILLING CODE 8026–03–P 

DEPARTMENT OF STATE 

[Public Notice: 11282] 

Designation of Saraya al-Mukhtar as a 

Specially Designated Global Terrorist 

Acting under the authority of and in 

accordance with sections 1(a)(ii)(A) of 

Executive Order 13224 of September 23, 

2001, as amended by Executive Order 

13268 of July 2, 2002, Executive Order 

13284 of January 23, 2003, and 

Executive Order 13886 of September 9, 

2019, I hereby determine that the person 

known as Saraya al-Mukhtar, also 

known as Saraya al-Mokhtar, also 

known as SaM, also known as alMukhtar Brigades, also known as AMB, 

also known as Al-Mukhtar Companies, 

also known as Bahraini Islamic 

Resistance Al-Mukhtar Companies, also 

known as Bahraini Islamic Resistance, 

also known as Al-Muqawama alIslamiyya al-Bahrania, is a foreign 

person who poses a significant risk of 

committing acts of terrorism that 

threaten the security of U.S. nationals or 

the national security, foreign policy, or 

economy of the United States. 

Consistent with the determination in 

section 10 of Executive Order 13224 that 

prior notice to persons determined to be 

subject to the Order who might have a 

constitutional presence in the United 

States would render ineffectual the 

blocking and other measures authorized 

in the Order because of the ability to 

transfer funds instantaneously, I 

determine that no prior notice needs to 

be provided to any person subject to this 

determination who might have a 

constitutional presence in the United 

States, because to do so would render 

ineffectual the measures authorized in 

the Order. 

This notice shall be published in the 

Federal Register. 

Dated: December 9, 2020. 

Michael R. Pompeo, 

Secretary of State. 

[FR Doc. 2020–27849 Filed 12–17–20; 8:45 am] 

BILLING CODE 4710–AD–P 


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