82008 Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 

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

15 17 CFR 240.19b–4(f). 

16 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. 88992 

(June 2, 2020), 85 FR 35142 (June 8, 2020) (SR– 

PEARL–2020–06) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Amend 

Exchange Rule 404, Series of Option Contracts 

Open for Trading, and Rule 510, Minimum Price 

Variations and Minimum Trading Increments, 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). 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

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) 

of the Act 14 and paragraph (f) of Rule 

19b–4 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 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–2020–115 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–2020–115. 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. 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– 

2020–115 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. 2020–27723 Filed 12–16–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90640; File No. SR– 

PEARL–2020–31] 

Self-Regulatory Organizations; MIAX 

PEARL, 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, MIAX PEARL, 

LLC (‘‘MIAX PEARL’’ 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 PEARL Fee Schedule 

(the ‘‘Fee Schedule’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’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 for the Exchange’s options 

market to amend the exchange 

groupings of options exchanges within 

the routing fee table in Section 1)b) of 

the Fee Schedule. 

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 3 (‘‘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, Miami 

International Securities Exchange, LLC 

Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 82009 

4See Cboe BZX Fee Schedule under ‘‘Fee Codes 

and Associated Fees.’’ 

5The 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). 

6See supra note 4. 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. 

7The term ‘‘Member’’ means an individual or 

organization that is registered with the Exchange 

pursuant to Chapter II of Exchange Rules for 

purposes of trading on the Exchange as an 

‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’ 

Members are deemed ‘‘members’’ under the 

Exchange Act. See the Definitions section of the Fee 

Schedule and Exchange Rule 100. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78f(b)(5). 

(‘‘MIAX’’) 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.4

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, MIAX, 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 .................................................................................................................................... 0.65 

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

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

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

Emerald .................................................................................................................................................................................................... 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 Emerald, MIAX, NOM, 

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

Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: NYSE American, MIAX, 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, NOM, BOX, Nasdaq BX Options, 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,5

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 and 

MIAX Emerald, but is also comparable 

to the structures in place at other 

competing options exchanges, such as 

Cboe BZX.6 The Exchange’s routing fee 

structure approximates the Exchange’s 

costs associated with routing orders to 

away markets. The per-contract 

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 and MIAX 

Emerald, the Exchange’s Members 7 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 

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 8

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 9 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 10 in that it is designed to 

82010 Federal Register / Vol. 85, No. 243 / Thursday, December 17, 2020 / Notices 

11See supra note 6. 

12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 240.19b–4(f)(2). 14 17 CFR 200.30–3(a)(12). 

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 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 believes its proposed recategorization 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.11

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,12 and Rule 

19b–4(f)(2) 13 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– 

PEARL–2020–31 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–2020–31. 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–2020–31, and 

should be submitted on or before 

January 7, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27721 Filed 12–16–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. IA–5646] 

Notice of Intention to Cancel 

Registration Pursuant to section 

203(H) of the Investment Advisers Act 

of 1940 

December 14, 2020. 

Notice is given that the Securities and 

Exchange Commission (the 

‘‘Commission’’) intends to issue an 

order, pursuant to section 203(h) of the 

Investment Advisers Act of 1940 (the 

‘‘Act’’), cancelling the registration of 

Family Office Partners, Inc. [File No. 

801–110022], hereinafter referred to as 

the ‘‘registrant.’’ 

Section 203(h) of the Act provides, in 

pertinent part, that if the Commission 

finds that any person registered under 

section 203 of the Act, or who has 

pending an application for registration 

filed under that section, is no longer in 

existence, is not engaged in business as 

an investment adviser, or is prohibited 

from registering as an investment