84084 Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices 

22 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. 83888 

(August 20, 2018), 83 FR 42954 (August 24, 2018) 

(SR–NASDAQ–2018–069) (‘‘Prior Rule Change’’). In 

the Prior Rule Change the Exchange stated that it 

would issue an Options Trader Alert introducing 

the new OTTO protocol in Q4 of 2018. The rule 

numbers were amended in 2019 when the Rulebook 

was relocated. See Securities Exchange Act Release 

No. 87778 (December 17, 2019), 84 FR 70590 

(December 23, 2019) (SR–NASDAQ–2019–098). 

4As modified by the Prior Rule Change, OTTO is 

an interface that allows Participants and their 

Sponsored Customers to connect, send, and receive 

messages related to orders to and from the 

Exchange. Features include the following: (1) 

Options symbol directory messages (e.g., 

underlying); (2) system event messages (e.g., start of 

trading hours messages and start of opening); (3) 

trading action messages (e.g., halts and resumes); (4) 

execution messages; (5) order messages; and (6) risk 

protection triggers and cancel notifications. See 

NOM Rules at Options 3, Section 7(d)(1)(C). 

5QUO is an interface that allows NOM Market 

Makers to connect, send, and receive messages 

related to single-sided orders to and from the 

Exchange. Order Features include the following: (1) 

Options symbol directory messages (e.g., 

underlying); (2) system event messages (e.g., start of 

trading hours messages and start of opening); (3) 

trading action messages (e.g., halts and resumes); (4) 

execution messages; (5) order messages; and (6) risk 

protection triggers and cancel notifications. Orders 

submitted by NOM Market Makers over this 

interface are treated as quotes. See Options 3, 

Section 7(d)(1)(D). 

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– 

NYSEARCA–2020–108 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–NYSEARCA–2020–108. 

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–NYSEARCA–2020–108, 

and should be submitted on or before 

January 13, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–28314 Filed 12–22–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90697; File No. SR– 

NASDAQ–2020–089] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To No Longer 

Implement the OTTO Protocol 

December 17, 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 December 

15, 2020, The Nasdaq Stock Market LLC 

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

Securities and Exchange Commission 

(‘‘Commission’’) the 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 proposes to remove the 

protocol ‘‘Ouch to Trade Options’’ or 

‘‘OTTO’’ from The Nasdaq Options 

Market LLC (‘‘NOM’’) Rulebook. The 

Exchange previously delayed its 

implementation of the OTTO protocol; 

the Exchange will no longer implement 

the OTTO protocol. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, 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 

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 

NOM’s proposal seeks to remove the 

protocol ‘‘Ouch to Trade Options’’ or 

‘‘OTTO’’ from The Nasdaq Options 

Market LLC (‘‘NOM’’) Rulebook. The 

Exchange previously delayed its 

implementation of the OTTO protocol; 

the Exchange will no longer implement 

the OTTO protocol. 

Background 

Nasdaq filed a rule change 3 which 

adopted a new protocol ‘‘Ouch to Trade 

Options’’ or ‘‘OTTO’’ 4 and proposed to 

rename and modify the current OTTO 

protocol as ‘‘Quote Using Orders’’ or 

‘‘QUO.’’ 5 The Exchange subsequently 

filed a rule change to amend Options 3, 

Section 18, titled ‘‘Detection of Loss of 

Communication’’ which describes the 

impact to NOM protocols in the event 

of a loss of a communication. The 

Exchange accounted for both the new 

OTTO and renamed and modified QUO 

within this rule. Similarly, the Exchange 

amended Options 3, Section 8, ‘‘Nasdaq 

Opening and Halt Cross’’ to account for 

the new OTTO and renamed and 

modified QUO within this rule. Finally, 

the Exchange amended Options 3, 

Section 23, ‘‘Data Feeds and Trade 

Information’’ to amend ‘‘OTTO DROP’’ 

to ‘‘QUO DROP’’ and noted within 

Options 3, Section 15(a)(1) related to 

Order Price Protection rule or ‘‘OPP’’ 


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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices 84085 

6See Securities Exchange Act Release No. 84559 

(November 9, 2018), 83 FR 57774 (November 16, 

2018) (SR–NASDAQ–2018–085) (‘‘Subsequent Rule 

Change’’). 

7See Securities Exchange Act Release No. 84723 

(December 4, 2018), 83 FR 63692 (December 11, 

2018) (SR–NASDAQ–2018–097). The Exchange 

proposed to immediately implement QUO as of the 

effectiveness of SR–NASDAQ–2018–097 and delay 

the implementation of OTTO by issuing an Options 

Trader Alert announcing the implementation date 

in Q1 2019. The QUO implementation became 

effective upon filing on November 26, 2018. 

8See Securities Exchange Act Release Nos. 85386 

(March 21, 2019), 84 FR 11597 (March 27, 2019) 

(SR–NASDAQ–2019–016); and 87160 (September 

30, 2019), 84 FR 53186 (October 4, 2019) (SR– 

NASDAQ–2019–078). 

9See Securities Exchange Act Release Nos. 89077 

(June 16, 2020), 85 FR 37486 (June 22, 2020) (SR– 

NASDAQ–2020–031). 

10See Securities Exchange Act Release No. 84723 

(December 4, 2018), 83 FR 63692 (December 11, 

2018) (SR–NASDAQ–2018–097). The Exchange 

proposed to immediately implement QUO as of the 

effectiveness of SR–NASDAQ–2018–097 and delay 

the implementation of OTTO by issuing an Options 

Trader Alert announcing the implementation date 

in Q1 2019. The QUO implementation became 

effective upon filing on November 26, 2018. 

11See Securities Exchange Act Release Nos. 

85386 (March 21, 2019), 84 FR 11597 (March 27, 

2019) (SR–NASDAQ–2019–016); and 87160 

(September 30, 2019), 84 FR 53186 (October 4, 

2019) (SR–NASDAQ–2019–078). 

12See Securities Exchange Act Release Nos. 

89077 (June 16, 2020), 85 FR 37486 (June 22, 2020) 

(SR–NASDAQ–2020–031). 

13Of those firms interested in the OTTO protocol 

in 2018, a very low number of firms were nonmarket making firms. As noted in the Prior Rule 

Change, the former OTTO protocol was 

predominately utilized by NOM Market Makers. 

14Further, FIX permits Participants to define their 

orders utilizing industry-wide canonical 

information (e.g. underlying, put/call and strike 

information) as compared to OTTO which would 

require a Participant to read symbol directory 

messages and send orders with Exchange specific 

instrument IDs. 

15See Options 3, Section 23 for descriptions of 

the Nasdaq ITCH to Trade Options (‘‘ITTO’’) and 

Best of Nasdaq Options (‘‘BONO’’) data feeds. 

System event messages (e.g., start of trading hours 

messages and start of opening); and trading action 

messages (e.g., halts and resumes) are available on 

both of these data feeds. 

16Nasdaq Phlx LLC (‘‘Phlx’’) and Nasdaq BX, Inc. 

(‘‘BX’’) only offer the FIX protocol for order entry. 

17 ‘‘Financial Information eXchange’’ or ‘‘FIX’’ is 

an interface that allows Participants and their 

Sponsored Customers to connect, send, and receive 

messages related to orders to and from the 

Exchange. Features include the following: (1) 

Execution messages; (2) order messages; and (3) risk 

protection triggers and cancel notifications. See 

Options 3, Section 7(d)(1)(A). 

18 ‘‘Specialized Quote Feed’’ or ‘‘SQF’’ is an 

interface that allows Market Makers to connect, 

send, and receive messages related to quotes and 

Immediate-or- Cancel Orders into and from the 

Exchange. Features include the following: (1) 

Options symbol directory messages (e.g underlying 

instruments); (2) system event messages (e.g., start 

of trading hours messages and start of opening); (3) 

trading action messages (e.g., halts and resumes); (4) 

execution messages; (5) quote messages; (6) 

Immediate-or-Cancel Order messages; (7) risk 

protection triggers and purge notifications; and (8) 

opening imbalance messages. The SQF Purge 

Interface only receives and notifies of purge request 

from the Market Maker. Market Makers may only 

enter interest into SQF in their assigned options 

series. See Options 3, Section 7(d)(1)(B). 

19 15 U.S.C. 78f(b). 

20 15 U.S.C. 78f(b)(5). 

21See Securities Exchange Act Release No. 84723 

(December 4, 2018), 83 FR 63692 (December 11, 

2018) (SR–NASDAQ–2018–097). The Exchange 

proposed to immediately implement QUO as of the 

effectiveness of SR–NASDAQ–2018–097 and delay 

the implementation of OTTO by issuing an Options 

Trader Alert announcing the implementation date 

in Q1 2019. The QUO implementation became 

effective upon filing on November 26, 2018. 

22See Securities Exchange Act Release Nos. 

85386 (March 21, 2019), 84 FR 11597 (March 27, 

2019) (SR–NASDAQ–2019–016); and 87160 

(September 30, 2019), 84 FR 53186 (October 4, 

2019) (SR–NASDAQ–2019–078). 

23See Securities Exchange Act Release Nos. 

89077 (June 16, 2020), 85 FR 37486 (June 22, 2020) 

(SR–NASDAQ–2020–031). 

that OPP shall not apply to orders 

entered through QUO.6

Both the Prior Rule Change and the 

Subsequent Rule Change indicated the 

aforementioned rule changes would be 

implemented for QUO and OTTO in Q4 

of 2018 with the date announced via an 

Options Traders Alert. The Exchange 

filed a rule change implementing QUO 

and delaying the introduction of the 

OTTO functionality until Q3 2019 by 

announcing the date of implementation 

via an Options Traders Alert.7 The 

Exchange further delayed the 

implementation of OTTO functionality 

until Q3 2019 and then Q2 2020, 

respectively.8 The last rule change filed 

with the Commission delayed the 

implementation of OTTO functionality 

until Q2 2021 due to market events.9

Proposal 

At this time, NOM has determined not 

to implement the OTTO protocol and 

proposes to remove references to the 

OTTO protocol within its Rulebook. As 

noted above, the Exchange delayed the 

introduction of the OTTO functionality 

initially until Q3 2019.10 The Exchange 

then further delayed the 

implementation of OTTO functionality 

until Q3 2019 and then Q2 2020, 

respectively.11 There were not a 

material amount of non-Market Makers 

interested in the risk enhancements or 

the OTTO protocol after the first two 

delays. The last rule change filed with 

the Commission delayed the 

implementation of OTTO functionality 

until Q2 2021 due to market events.12

Nasdaq was considering enhancing 

OTTO features to provide Participants 

with other capabilities that are currently 

not offered with OTTO, in the area of 

risk enhancements.13 Nasdaq has 

discussed certain enhancements with 

Participants. The Exchange notes that it 

did not have a large number of 

Participants interested in the 

enhancements it was considering. 

There are differences as between the 

current order entry FIX offering and the 

delayed OTTO offering. The OTTO 

offering included options symbol 

directory messages (e.g., underlying); 

system event messages (e.g., start of 

trading hours messages and start of 

opening); and trading action messages 

(e.g., halts and resumes). The options 

symbol directory messages,14 system 

event messages and trading action 

messages may also be obtained through 

market data feeds offered by the 

Exchange.15 Also, OTTO would not 

offer the ability to route, unlike FIX 

which does offer the ability to route 

orders. 

The Exchange notes that other Nasdaq 

markets offer only one order entry 

protocol.16 Both Phlx and BX offer only 

one quoting protocol, SQF, on those 

markets. 

At this time, in light of conversations 

with Participants, Nasdaq proposes to 

remove the OTTO protocol from its 

Rulebook and not implement this 

protocol. NOM will continue to offer 

QUO, in addition to its FIX 17 and 

SQF 18 protocols. The Exchange 

proposes to make conforming changes to 

the Rulebook to eliminate references to 

OTTO. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,19 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,20

in particular, 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. While 

the Exchange will no longer implement 

the OTTO functionality, it will continue 

to offer the FIX, QUO, and SQF 

protocols on NOM. 

As noted above, the Exchange delayed 

the introduction of the OTTO 

functionality initially until Q3 2019.21

The Exchange then further delayed the 

implementation of OTTO functionality 

until Q3 2019 and then Q2 2020, 

respectively.22 There were not a 

material amount of non-Market Makers 

interested in the risk enhancements or 

the OTTO protocol after the first two 

delays. The last rule change filed with 

the Commission delayed the 

implementation of OTTO functionality 

until Q2 2021 due to market events.23

Nasdaq was considering enhancing 

OTTO features to provide Participants 

with other capabilities that are currently 

not offered with OTTO, in the area of 


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84086 Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices 

24Of those firms interested in the OTTO protocol 

in 2018, a very low number of firms were nonmarket making firms. As noted in the Prior Rule 

Change, the former OTTO protocol was 

predominately utilized by NOM Market Makers. 

25The Exchange notes that it did not have a large 

number of Participants interested in the 

enhancements it was considering. 

26Orders that NOM Market Makers send through 

QUO count toward market maker quoting 

obligations. 

27See Options 2, Section 6(b). 

28Further, FIX permits Participants to define their 

orders utilizing industry-wide canonical 

information (e.g. underlying, put/call and strike 

information) as compared to OTTO which would 

require a Participant to read symbol directory 

messages and send orders with Exchange specific 

instrument IDs. 

29See Options 3, Section 23 for descriptions of 

the ITTO and BONO data feeds. 

30See note 16 above. 

31Orders that NOM Market Makers send through 

QUO count toward market maker quoting 

obligations. 

32See Options 2, Section 4. 

33See Options 2, Section 5. 

34See note 16 above. 

35 15 U.S.C. 78s(b)(3)(A)(iii). 

36 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

risk enhancements.24 Nasdaq has 

discussed certain enhancements with 

Participants.25 The Exchange notes that 

it did not have a large number of 

Participants interested in the 

enhancements it was considering. At 

this time, in light of conversations with 

Participants, Nasdaq proposes to remove 

the OTTO protocol from its Rulebook 

and not implement this protocol. 

As noted in the Prior Rule Change, the 

former OTTO protocol was 

predominately utilized by NOM Market 

Makers. NOM Market Makers may elect 

to utilize either the SQF or QUO 26

quoting protocols to quote on NOM. 

NOM Market Makers may enter orders 

to the extent they do not exceed 25 

percent of the total number of all 

contracts executed by the Market Maker 

in any calendar quarter in options in 

which the NOM Market Maker is not 

registered as a Market Maker.27 As 

Market Makers primarily make markets 

on NOM, utilizing the quoting 

protocols, the FIX offering is primarily 

utilized for non-market making 

activities by NOM Market Makers. 

Further, all NOM Participants have 

utilized FIX since the inception of NOM 

to enter orders. The differences as 

between the current order entry FIX 

offering and the delayed OTTO offering 

are not impactful in that the options 

symbol directory messages (e.g., 

underlying); 28 system event messages 

(e.g., start of trading hours messages and 

start of opening); and trading action 

messages (e.g., halts and resumes) may 

also be obtained through market data 

feeds offered by the Exchange.29 Today, 

NOM Participants subscribe to the 

market data feeds to obtain order book 

information. Finally, unlike FIX, OTTO 

would not offer the ability to route to 

away markets. The Exchange notes that 

other Nasdaq markets offer only one 

order entry protocol.30 Both Phlx and 

BX offer only one quoting protocol, 

SQF, on those markets. 

Nasdaq will continue its 

conversations with Participants to 

understand Participant needs so that it 

may continue to consider changes to 

protocols offered on NOM in the future. 

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. With this 

proposal, the Exchange will not 

implement the OTTO protocol to any 

NOM Participant. Any Participant may 

utilize the FIX protocol for order entry 

on NOM. The Exchange does not believe 

the proposal imposes an undue burden 

on intra-market competition. There were 

not a material amount of non-Market 

Makers interested in the risk 

enhancements or the OTTO protocol 

after the first two delays. 

As noted in the Prior Rule Change, the 

former OTTO protocol was 

predominately utilized by NOM Market 

Makers. Non-Market Makers could have 

elected to utilize OTTO, however it 

would not offer routing capabilities. 

While NOM Market Makers may elect to 

utilize either the SQF or the QUO 31

quoting protocol, non-Market Makers 

must utilize the FIX protocol. NOM 

Market Makers, unlike other market 

participants, are required to provide 

liquidity to the market and are subject 

to certain obligations,32 including a 

requirement to provide continuous twosided quotes on a daily basis.33

Providing multiple protocols for NOM 

Market Makers to provide liquidity on 

NOM benefits all market participants 

through the quality of order interaction. 

The Exchange does not believe the 

proposal imposes an undue burden on 

inter-market competition because the 

protocols described herein permit 

market participants to enter quotes and 

orders on NOM. Other options 

exchanges may similarly develop 

protocols specific to order and quote 

entry on their markets which are similar 

to the offerings on NOM. The Exchange 

notes that other Nasdaq markets offer 

only one order entry protocol.34 Both 

Phlx and BX offer only one quoting 

protocol, SQF, on those markets. 

Further, today, all options markets 

utilize the FIX protocol for order entry. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 35 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.36

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– 

NASDAQ–2020–089 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–NASDAQ–2020–089. This 


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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices 84087 

37 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78a. 

2 17 CFR 240.19b–4. 

3Unless otherwise specified, capitalized terms 

used in this rule filing are defined as set forth in 

the Compliance Rule. 

4See Securities Exchange Act Rel. No. 90223 

(October 19, 2020), 85 FR 67576 (October 23, 2020) 

(‘‘Allocation Exemptive Order’’). 

5Section 1.1 of the CAT NMS Plan defines an 

‘‘Allocation Report’’ as ‘‘a report made to the 

Central Repository by an Industry Member that 

identifies the Firm Designated ID for any account(s), 

including subaccount(s), to which executed shares 

are allocated and provides the security that has 

been allocated, the identifier of the firm reporting 

the allocation, the price per share of shares 

allocated, the side of shares allocated, the number 

of shares allocated to each account, and the time of 

the allocation; provided for the avoidance of doubt, 

any such Allocation Report shall not be required to 

be linked to particular orders or executions.’’ 

6See letter from the Participants to Vanessa 

Countryman, Secretary, Commission, dated August 

27, 2020 (the ‘‘Exemption Request’’). 

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–NASDAQ–2020–089 and 

should be submitted on or before 

January 13, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.37

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–28304 Filed 12–22–20; 8:45 am] 

BILLING CODE 0811–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90706; File No. SR–NYSE– 

2020–100] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Rule 6800 Series 

December 17, 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 December 

4, 2020, New York Stock Exchange LLC 

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

the Securities and Exchange 

Commission (‘‘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 

Rule 6800 Series, the Exchange’s 

compliance rule (‘‘Compliance Rule’’) 

regarding the National Market System 

Plan Governing the Consolidated Audit 

Trail (the ‘‘CAT NMS Plan’’ or ‘‘Plan’’) 3

to be consistent with a conditional 

exemption granted by the Commission 

from certain allocation reporting 

requirements set forth in Sections 

6.4(d)(ii)(A)(1) and (2) of the CAT NMS 

Plan (‘‘Allocation Exemption’’).4 The 

proposed rule 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 proposed rule 

change is to amend the Rule 6800 Series 

to be consistent with the Allocation 

Exemption. The Commission granted 

the relief conditioned upon the 

Participants’ adoption of Compliance 

Rules that implement the alternative 

approach to reporting allocations to the 

Central Repository described in the 

Allocation Exemption (referred to as the 

‘‘Allocation Alternative’’). 

(1) Request for Exemptive Relief 

Pursuant to Section 6.4(d)(ii)(A) of the 

CAT NMS Plan, each Participant must, 

through its Compliance Rule, require its 

Industry Members to record and report 

to the Central Repository, if the order is 

executed, in whole or in part: (1) An 

Allocation Report; 5 (2) the SROAssigned Market Participant Identifier 

of the clearing broker or prime broker, 

if applicable; and the (3) CAT-Order-ID 

of any contra-side order(s). Accordingly, 

the Exchange and the other Participants 

implemented Compliance Rules that 

require their Industry Members that are 

executing brokers to submit to the 

Central Repository, among other things, 

Allocation Reports and the SROAssigned Market Participant Identifier 

of the clearing broker or prime broker, 

if applicable. 

On August 27, 2020, the Participants 

submitted to the Commission a request 

for an exemption from certain allocation 

reporting requirements set forth in 

Sections 6.4(d)(ii)(A)(1) and (2) of the 

CAT NMS Plan (‘‘Exemption 

Request’’).6 In the Exemption Request, 

the Participants requested that they be 

permitted to implement the Allocation 

Alternative, which, as noted above, is an 

alternative approach to reporting 

allocations to the Central Repository. 

Under the Allocation Alternative, any 

Industry Member that performs an 

allocation to a client account would be 

required under the Compliance Rule to 

submit an Allocation Report to the 

Central Repository when shares/ 

contracts are allocated to a client 

account regardless of whether the 

Industry Member was involved in 

executing the underlying order(s). 

Under the Allocation Alternative, a 

‘‘client account’’ would be any account 

that is not owned or controlled by the 

Industry Member. 

In addition, under the Allocation 

Alternative, an ‘‘Allocation’’ would be 

defined as: (1) The placement of shares/ 

contracts into the same account for 


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