Federal Register / Vol. 85, No. 240 / Monday, December 14, 2020 / Notices 80863 

28 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. 89063 

(June 12, 2020), 85 FR 36923. Comments received 

on the proposed rule change are available on the 

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

comments/sr-cboe-2020-052/srcboe2020052.htm. 

4 In Amendment No. 1, the Exchange amended 

the proposal to: (1) To add that, when the proposed 

stop price dissemination in auction notification 

messages is enabled for AIM, C–AIM, or FLEX AIM 

auctions in SPX, it would apply to all such AIM, 

C–AIM, or FLEX AIM auctions; (2) specify that the 

proposed minimum increment modification would 

apply to Index Combo Orders in SPX, and to correct 

an internal cross-reference in the proposed rules; (3) 

provide additional detail to the description and 

examples of the proposed modification to the 

minimum increment for Index Combo Orders in 

SPX; and (4) provide additional justification and 

support for the proposed rule change. The full text 

of Amendment No. 1 is available on the 

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

comments/sr-cboe-2020-052/srcboe2020052- 

7464403-221166.pdf. 

5 15 U.S.C. 78s(b)(2). 

6See Securities Exchange Act Release No. 89400, 

85 FR 46202 (July 31, 2020). The Commission 

designated September 16, 2020 as the date by which 

the Commission shall approve or disapprove, or 

institute proceedings to determine whether to 

disapprove, the proposed rule change. 

7 15 U.S.C. 78s(b)(2)(B). 

8See Securities Exchange Act Release No. 89638, 

85 FR 53045 (August 27, 2020). 

9 15 U.S.C. 78s(b)(2). 

10 Id. 

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– 

PEARL–2020–34 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–PEARL–2020–34. 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–PEARL–2020–34, and 

should be submitted on or before 

January 4, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27386 Filed 12–11–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90592; File No. SR–CBOE– 

2020–052] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Designation 

of a Longer Period for Commission 

Action on Proceedings To Determine 

Whether To Approve or Disapprove a 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Amend Rules 

5.37, 5.38, and 5.73 Related to Auction 

Notification Messages and Index 

Combo Orders in SPX in the 

Automated Improvement Mechanism, 

Complex Automated Improvement 

Mechanism, and FLEX Automated 

Improvement Mechanism 

December 8, 2020. 

On June 3, 2020, Cboe Exchange, Inc. 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Rules 5.37, 5.38, and 5.73 to (1) 

allow the Exchange to determine to 

disseminate the stop price in auction 

notification messages for Automated 

Improvement Mechanism (‘‘AIM’’), 

Complex Automated Improvement 

Mechanism (‘‘C–AIM’’), and FLEX AIM 

auctions in S&P 500® Index options 

(‘‘SPX’’); and (2) modify the minimum 

increment for C–AIM and FLEX AIM 

auction responses for Index Combo 

Orders in SPX. The proposed rule 

change was published for comment in 

the Federal Register on June 18, 2020.3

On July 22, 2020, the Exchange 

submitted Amendment No. 1 to the 

proposed rule change, which replaced 

and superseded the proposed rule 

change in its entirety.4 On July 27, 2020, 

pursuant to Section 19(b)(2) of the Act,5

the Commission designated a longer 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.6

On August 21, 2020, the Commission 

published notice of Amendment No. 1 

and instituted proceedings under 

Section 19(b)(2)(B) of the Act 7 to 

determine whether to approve or 

disapprove the proposed rule change, as 

modified by Amendment No. 1.8

Section 19(b)(2) of the Act 9 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 18, 2020. December 15, 

2020, is 180 days from that date, and 

February 13, 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,10 designates 

February 13, 2021, as the date by which 

the Commission shall either approve or 

disapprove the proposed rule change, as 

modified by Amendment No. 1 (File No. 

SR–CBOE–2020–052). 


jbell on DSKJLSW7X2PROD with NOTICES
80864 Federal Register / Vol. 85, No. 240 / Monday, December 14, 2020 / Notices 

11 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b-4. 

3The term ‘‘Trading Permit’’ means a permit 

issued by the Exchange that confers the ability to 

transact on the Exchange. See Exchange Rule 100. 

4The 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 and the Definitions Section of 

the Fee Schedule. 

5 ‘‘Electronic Exchange Member’’ or ‘‘EEM’’ 

means the holder of a Trading Permit who is not 

a Market Maker. Electronic Exchange Members are 

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

Exchange Rule 100 and the Definitions Section of 

the Fee Schedule. 

6The term ‘‘Market Makers’’ refers to ‘‘Lead 

Market Makers’’, ‘‘Primary Lead Market Makers’’ 

and ‘‘Registered Market Makers’’ collectively. See 

Exchange Rule 100 and the Definitions Section of 

the Fee Schedule. 

7 15 U.S.C. 78f. 

8See Securities Exchange Act Release No. 84891 

(December 20, 2018), 83 FR 67421 (December 28, 

2018) (File No. 10–233) (order approving 

application of MIAX Emerald, LLC for registration 

as a national securities exchange). 

9See Securities Exchange Act Release No. 85393 

(March 21, 2019), 84 FR 11599 (March 27, 2019) 

(SR–EMERALD–2019–15) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Establish the MIAX Emerald Fee Schedule). 

10 ‘‘Waiver Period’’ means, for each applicable 

fee, the period of time from the initial effective date 

of the MIAX Emerald Fee Schedule until such time 

that the Exchange has an effective fee filing 

establishing the applicable fee. The Exchange will 

issue a Regulatory Circular announcing the 

establishment of an applicable fee that was subject 

to a Waiver Period at least fifteen (15) days prior 

to the termination of the Waiver Period and 

effective date of any such applicable fee. See the 

Definitions Section of the Fee Schedule. 

11See MIAX Emerald Regulatory Circular 2020– 

41 available at https://www.miaxoptions.com/sites/ 

default/files/circular-files/MIAX_Emerald_RC_

2020_41.pdf. 

12See Securities Exchange Act Release Nos. 

90196 (October 15, 2020), 85 FR 67064 (October 21, 

2020) (SR–EMERALD–2020–11) (Notice of Filing 

and Immediate Effectiveness of a Proposed Rule 

Change To Amend Its Fee Schedule To Adopt OneTime Membership Application Fees and Monthly 

Trading Permit Fees) (the ‘‘First Proposed Rule 

Change’’). The Exchange notes that it will refile its 

proposal to establish the one-time membership 

application fee in a separate filing. 

13See id. 

14See Comment Letter from Joseph W. Ferraro III, 

SVP, Deputy General Counsel, the Exchange, dated 

November 20, 2020, notifying the Commission that 

the Exchange will withdraw the First Proposed Rule 

Change. 

15See the MIAX Fee Schedule, Section 3)b). 

16 ‘‘FIX Port’’ means an interface with MIAX 

Emerald systems that enables the Port user to 

submit simple and complex orders electronically to 

MIAX Emerald. See the Definitions Section of the 

Fee Schedule. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27387 Filed 12–11–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90601; File No. SR– 

EMERALD–2020–18] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Amend Its Fee 

Schedule To Adopt a Monthly Trading 

Permit Fees 

December 8, 2020. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on November 

27, 2020, MIAX Emerald, LLC (‘‘MIAX 

Emerald’’ 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 Emerald Fee Schedule 

(the ‘‘Fee Schedule’’) to establish 

monthly Trading Permit 3 fees for 

Exchange Members.4

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/emerald, 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 amend the 

Fee Schedule to adopt monthly Trading 

Permit fees (the ‘‘Proposed Access 

Fees’’) depending on the Member’s 

status as either an Electronic Exchange 

Member (‘‘EEM’’) 5 or as a Market 

Maker.6 MIAX Emerald commenced 

operations as a national securities 

exchange registered under Section 6 of 

the Act 7 on March 1, 2019.8 The 

Exchange adopted its transaction fees 

and certain of its non-transaction fees in 

its filing SR–EMERALD–2019–15.9 In 

that filing, the Exchange expressly 

waived, among other fees, the Proposed 

Access Fees, to provide an incentive to 

prospective EEMs and Market Makers to 

become Members of the Exchange. 

Accordingly, since the launch of the 

Exchange, all such membership fees 

have been waived for the Waiver 

Period.10 When the Exchange adopted 

the framework for its fees, it stated that 

it would provide notice to market 

participants when the Exchange 

intended to terminate the Waiver Period 

for the Proposed Access Fees. 

Accordingly, on September 15, 2020, 

the Exchange issued a Regulatory 

Circular which announced that the 

Exchange would be ending the Waiver 

Period for the Proposed Access Fees, 

among other non-transaction fees, 

beginning October 1, 2020.11

The Exchange initially filed its 

proposal to establish the Proposed 

Access Fees on October 1, 2020.12 The 

First Proposed Rule Change was 

published for comment in the Federal 

Register on October 21, 2020.13 On 

November 25, 2020, the Exchange 

withdrew the First Proposed Rule 

Change and refiled its proposal to 

establish monthly Trading Permit fees.14

Trading Permits are issued to 

Members who are either EEMs or 

Market Makers. The Exchange proposes 

to assess the Proposed Access Fees 

depending upon the category of Member 

that is issued a Trading Permit. 

Members issued Trading Permits during 

a calendar month will be assessed 

monthly Trading Permit Fees. The 

Exchange notes that the Exchange’s 

affiliate, Miami International Securities 

Exchange, LLC (‘‘MIAX’’), charges a 

similar, fixed trading permit fee to its 

EEMs, and a similar, varying trading 

permit fee to its Market Makers, based 

upon the number of assignments of 

option classes or the percentage of 

volume in option classes.15

The Exchange proposes that monthly 

Trading Permit fees will be assessed, 

with respect to the calculation of such 

fee to EEMs (other than clearing firms), 

in any month the EEM is certified in the 

membership system and is credentialed 

to use one or more Financial 

Information Exchange (‘‘FIX’’) 16 ports 


jbell on DSKJLSW7X2PROD with NOTICES