Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82557 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b-4. 

3See Exchange Rule 1.5(p). 

4Market share percentage calculated as of 

December 3, 2020. The Exchange receives and 

processes data made available through consolidated 

data feeds (i.e., CTS and UTDF). 

5See Securities Exchange Act Release No. 90555 

(December 3, 2020) (SR–MEMX–2020–13) [sic]. 

6This pricing is referred to by the Exchange on 

the fee schedule under the existing description 

‘‘Removed volume from MEMX Book’’ with a fee 

code of ‘‘RB’’ or ‘‘RrB’’, as applicable, assigned by 

the Exchange. 

7This pricing is referred to by the Exchange on 

the fee schedule under ‘‘Added displayed volume’’, 

‘‘Added non-displayed volume’’ or ‘‘Added 

displayed volume, Retail Order’’, as applicable, 

with a fee code of ‘‘BB’’, ‘‘BrB’’, ‘‘DB’’, ‘‘DrB’’, ‘‘JB’’, 

‘‘JrB’’, ‘‘HB’’, ‘‘HrB’’, ‘‘MB’’ or ‘‘MrB’’, as applicable, 

assigned by the Exchange. 

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–2020–084 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–2020–084. 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–NASDAQ–2020–084 and 

should be submitted on or before 

January 8, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant todelegated 

authority.19

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27837 Filed 12–17–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90660; File No. SR–MEMX– 

2020–15] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change to Amend the Exchange’s Fee 

Schedule 

December 14, 2020. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on December 

4, 2020, MEMX LLC (‘‘MEMX’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the 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 with the 

Commission a proposed rule change to 

amend the fee schedule applicable to 

Members 3 pursuant to Exchange Rules 

15.1(a) and (c) in order to modify its 

pricing for transactions in securities 

priced below $1.00 per share that are 

executed on the Exchange. The text of 

the proposed rule change is provided in 

Exhibit 5. 

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 modify its 

fee schedule to modify the fees and 

rebates applicable to transactions in 

securities priced below $1.00 per share 

(‘‘Sub-Dollar Securities’’) that are 

executed on the Exchange, effective as 

of December 4, 2020. 

The Exchange first notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

16 registered equities exchanges, as well 

as a number of alternative trading 

systems and other off-exchange venues, 

to which market participants may direct 

their order flow. Based on publicly 

available information, no single 

registered equities exchange currently 

has more than approximately 16% of 

the total market share of executed 

volume of equities trading.4 Thus, in 

such a low-concentrated and highly 

competitive market, no single equities 

exchange possesses significant pricing 

power in the execution of order flow. 

The Exchange recently adopted a 

proposal 5 to charge a standard fee of 

0.30% of the total dollar value of any 

transaction in Sub-Dollar Securities that 

removes liquidity from the Exchange 

(‘‘Removed Sub-Dollar Volume’’).6 The 

Exchange also adopted pricing to 

provide a standard rebate of 0.30% of 

the total dollar value of any transaction 

in Sub-Dollar Securities that adds 

liquidity, displayed or non-displayed, to 

the Exchange (‘‘Added Sub-Dollar 

Volume’’).7

The current rebate for executions of 

Added Sub-Dollar Volume was adopted 

to increase order flow in Sub-Dollar 

Securities to the Exchange by 

incentivizing Members to increase the 

liquidity-providing orders in Sub-Dollar 

Securities they submit to the Exchange, 

which would support price discovery 

on the Exchange and provide additional 

liquidity for incoming orders. The 

current fee for executions of Removed 

Sub-Dollar Volume, in turn, was 

intended to be a direct offset of the 


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82558 Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4) and (5). 

10Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

11See the NYSE Arca, Inc. (‘‘NYSE Arca’’) 

equities trading fee schedule on its public website 

(available at https://www.nyse.com/publicdocs/ 

nyse/markets/nyse-arca/NYSE_Arca_Marketplace_

Fees.pdf), which reflects a standard rebate of 

$0.00004 per share for liquidity-adding transactions 

in securities priced below $1.00 per share; the 

NYSE Arca equities trading fee schedule also 

permits participants to qualify for tiered rebates 

reflected as a percentage of the total dollar value of 

such transactions enabling participants to receive a 

rebate of 0.05% of the total dollar value per 

transaction (i.e., the same rebate proposed by the 

Exchange) or higher rebates ranging from 0.10% to 

0.15% of the total dollar value per transaction. 

12See, e.g., the Cboe EDGX Exchange, Inc. 

equities trading fee schedule on its public website 

(available at https://markets.cboe.com/us/equities/

membership/fee_schedule/edgx/), which reflects a 

fee of 0.30% of the total dollar value of the 

transaction for liquidity-removing transactions in 

securities priced below $1.00 per share; the NYSE 

Arca equities trading fee schedule on its public 

website (available at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse-arca/NYSE_Arca_

Marketplace_Fees.pdf), which reflects a fee of 

0.295% of the total dollar value of the transaction 

for liquidity-taking transactions in securities priced 

below $1.00 per share. 

13See, e.g., the Cboe BYX Exchange, Inc. equities 

trading fee schedule on its public website (available 

at https://markets.cboe.com/us/equities/ 

membership/fee_schedule/byx/), which reflects a 

fee of 0.10% of the total dollar value of the 

transaction for liquidity-removing transactions in 

securities priced below $1.00 per share; the Cboe 

EDGA Exchange, Inc. equities trading fee schedule 

on its public website (available at https://

markets.cboe.com/us/equities/membership/fee_

schedule/edga/), which reflects no fee or rebate for 

liquidity-removing transactions in securities priced 

below $1.00 per share; the NYSE National, Inc. 

equities trading fee schedule on its public website 

(available at https://www.nyse.com/publicdocs/

nyse/markets/nyse-arca/NYSE_Arca_Marketplace_

Fees.pdf), which reflects no fee or rebate for 

liquidity-removing transactions in securities priced 

below $1.00 per share. 

rebate provided for Added Sub-Dollar 

Volume so that the Exchange could 

remain revenue neutral with respect to 

such transactions while attempting to 

compete with other venues to attract 

this order flow. While the pricing 

adopted by the Exchange was successful 

in attracting liquidity, based on activity 

that has occurred on the Exchange in 

the first several days of such pricing, the 

Exchange believes that a rebate of 0.30% 

of the total dollar value of any 

transaction might provide an out-sized 

incentive to trade certain high-volume 

Sub-Dollar Securities, particularly those 

with a lower bid-ask spread. 

Accordingly, the Exchange is proposing 

to modify its rebate for Added SubDollar Volume to provide a rebate of 

0.05% of the total dollar value of any 

transaction. The Exchange still believes 

that providing a rebate is important to 

attract displayed liquidity in Added 

Sub-Dollar Volume but is reducing the 

amount of the rebate in order to further 

analyze the optimal way to attract onexchange order flow in Sub-Dollar 

Securities. In connection with this 

change, the Exchange proposes to 

maintain a revenue-neutral fee structure 

for executions in Sub-Dollar Securities, 

and thus proposes to reduce the fee to 

for Removed Sub-Dollar Volume to 

0.05% of the total dollar value of any 

transaction. 

The proposed pricing for Removed 

Sub-Dollar Volume and Added SubDollar Volume would only apply to 

transactions that are executed on the 

Exchange, and as such there would 

continue to be no fee charged or rebate 

provided for transactions in Sub-Dollar 

Securities that are routed to and 

executed at another market center. The 

proposed rule change does not include 

different fees or rebates for Sub-Dollar 

Securities that depend on the amount of 

orders submitted to, and/or transactions 

executed on or through, the Exchange. 

Accordingly, all fees and rebates 

described above are applicable to all 

Members, regardless of the overall 

volume of a Member’s trading activities 

on the Exchange. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) of the 

Act,8 in general, and furthers the 

objectives of Sections 6(b)(4) and (5) of 

the Act,9 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

other persons using its facilities and is 

not designed to unfairly discriminate 

between customers, issuers, brokers, or 

dealers. 

As discussed above, the Exchange 

operates in a highly fragmented and 

competitive market in which market 

participants can readily direct order 

flow to competing venues if they deem 

fee levels at a particular venue to be 

excessive or incentives to be 

insufficient, and the Exchange 

represents only a small percentage of 

the overall market. The Commission and 

the courts have repeatedly expressed 

their preference for competition over 

regulatory intervention in determining 

prices, products, and services in the 

securities markets. In Regulation NMS, 

the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 

and also recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 10

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can shift order flow or discontinue to 

reduce use of certain categories of 

products, in response to new or 

different pricing structures being 

introduced into the market. 

Accordingly, competitive forces 

constrain the Exchange’s transaction 

fees and rebates, including with respect 

to transactions in Sub-Dollar Securities, 

and market participants can readily 

trade on competing venues if they deem 

pricing levels at those other venues to 

be more favorable. The Exchange 

believes the proposed rule change 

reflects a reasonable and competitive 

pricing structure designed to incentivize 

market participants to direct order flow 

to the Exchange, which the Exchange 

believes would enhance market quality 

to the benefit of all Members and 

investors. The Exchange notes that the 

proposal does not include different fees 

or rebates for transactions in Sub-Dollar 

Securities depending on the amount of 

orders submitted to, and/or transactions 

executed on or through, the Exchange. 

Accordingly, the proposed pricing 

structure is applicable to all Members, 

regardless of the overall volume of a 

Member’s trading activities on the 

Exchange. 

The Exchange believes that the 

proposed changes with respect to 

pricing for executions of transactions in 

Sub-Dollar Securities would continue to 

incentivize submission of additional 

liquidity in Sub-Dollar Securities to the 

Exchange through the proposed rebate 

of 0.05% of the total dollar value of any 

Added Sub-Dollar Volume transactions, 

thereby promoting price discovery and 

transparency, and enhancing order 

execution opportunities for all 

Members. The Exchange believes that 

the proposed rebate for Added SubDollar Volume is reasonable because it 

would continue to incentivize Members 

to direct order flow in Sub-Dollar 

Securities to the Exchange. The 

Exchange notes that at least one other 

exchange provides tiered rebates for 

liquidity-adding transactions in SubDollar Securities equal to and better 

than the proposed rebate.11

The Exchange also believes that the 

proposed fee for Removed Sub-Dollar 

Volume is reasonable because it is in 

lower than 12 or within the range of 13

fees charged by other exchanges for 

liquidity-removing transactions in SubDollar Securities. The Exchange believes 

that, given the competitive environment 

in which the Exchange currently 

operates, the proposed pricing structure, 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 244 / Friday, December 18, 2020 / Notices 82559 

14See supra note 10. 

15See supra note 10. 

16NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. 

2010) (quoting Securities Exchange Act Release No. 

59039 (December 2, 2008), 73 FR 74770, 74782–83 

(December 9, 2008) (SR–NYSE–2006–21)). 

with an offsetting fee and rebate with 

respect to executions of transactions in 

Sub-Dollar Securities, is a reasonable 

attempt to encourage liquidity in SubDollar Securities on the Exchange while 

remaining revenue neutral with respect 

to such transactions. 

The Exchange also believes that the 

proposed fee and rebate structure 

applicable to executions of transactions 

in Sub-Dollar Securities is equitably 

allocated and not unfairly 

discriminatory because it applies 

equally to all Members and is 

reasonably related to the value of the 

Exchange’s market quality associated 

with higher volume. A number of 

Members currently transact in SubDollar Securities and they, along with 

additional Members that choose to 

direct order flow in Sub-Dollar 

Securities to the Exchange, would all 

qualify for the proposed fee and rebate. 

The Exchange still believes that 

providing a rebate is important to attract 

displayed liquidity in Added Sub-Dollar 

Volume but is reducing the amount of 

the rebate in order to further analyze the 

optimal way to attract on-exchange 

order flow in Sub-Dollar Securities. The 

Exchange believes that maintaining 

competitive pricing for transactions in 

Sub-Dollar Securities would benefit all 

investors by deepening the Exchange’s 

liquidity pool, which would support 

price discovery, promote market 

transparency and improve investor 

protection, further rendering the 

proposed changes reasonable and 

equitable. 

In conclusion, the Exchange also 

submits that its proposed fee structure 

satisfies the requirements of Sections 

6(b)(4) and 6(b)(5) of the Act for the 

reasons discussed above in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among its Members and other persons 

using its facilities and is not designed to 

unfairly discriminate between 

customers, issuers, brokers, or dealers. 

As described more fully below in the 

Exchange’s statement regarding the 

burden on competition, the Exchange 

believes that its transaction pricing, 

including with respect to transactions in 

Sub-Dollar Securities, is subject to 

significant competitive forces, and that 

the proposed fees and rebates described 

herein are appropriate to address such 

forces. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Instead, as 

discussed above, the Exchange believes 

that the proposed change would 

encourage the continued submission of 

orders in Sub-Dollar Securities to the 

Exchange, thereby promoting market 

depth, enhanced execution 

opportunities, as well as price discovery 

and transparency for all Members. 

Furthermore, the Exchange believes that 

the proposed changes would allow the 

Exchange to continue to compete with 

other execution venues by providing 

competitive pricing for transactions in 

Sub-Dollar Securities, thereby making it 

a desirable destination venue for its 

customers. As a result, the Exchange 

believes that the proposed change 

furthers the Commission’s goal in 

adopting Regulation NMS of fostering 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 14

Intramarket Competition 

The Exchange believes that the 

proposed changes would continue to 

incentivize market participants to direct 

order flow to the Exchange. Greater 

liquidity benefits all Members by 

providing more trading opportunities 

and encourages Members to send orders 

to the Exchange, thereby contributing to 

robust levels of liquidity, which benefits 

all Members. The proposed fees and 

rebates for transactions in Sub-Dollar 

Securities would be available to all 

market participants, and, as such, the 

proposed change would not impose a 

disparate burden on competition among 

market participants on the Exchange. As 

such, the Exchange believes the 

proposed changes would not impose 

any burden on intramarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

Intermarket Competition 

The Exchange operates in a highly 

competitive market. Members have 

numerous alternative venues that they 

may participate on and direct their 

order flow to, including 15 other 

equities exchanges and numerous 

alternative trading systems and other 

off-exchange venues. As noted above, no 

single registered equities exchange 

currently has more than approximately 

16% of the total market share of 

executed volume of equities trading. 

Thus, in such a low-concentrated and 

highly competitive market, no single 

equities exchange possesses significant 

pricing power in the execution of order 

flow. Moreover, the Exchange believes 

that the ever-shifting market share 

among the exchanges from month to 

month demonstrates that market 

participants can shift order flow or 

discontinue to reduce use of certain 

categories of products, in response to 

new or different pricing structures being 

introduced into the market. 

Accordingly, competitive forces 

constrain the Exchange’s transaction 

fees and rebates, including with respect 

to transactions in Sub-Dollar Securities, 

and market participants can readily 

choose to send their orders to other 

exchange and off-exchange venues if 

they deem fee levels at those other 

venues to be more favorable. As 

described above, the proposed changes 

are competitive proposals through 

which the Exchange is seeking to 

encourage certain order flow to be sent 

to the Exchange. 

Additionally, the Commission has 

repeatedly expressed its preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 

and, also, recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 15 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. SEC, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . ..’’.16 Accordingly, the 

Exchange does not believe its proposed 

fee change imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 


khammond on DSKJM1Z7X2PROD with NOTICES
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 


khammond on DSKJM1Z7X2PROD with NOTICES