Federal Register / Vol. 85, No. 248 / Monday, December 28, 2020 / Notices 84431 

382See PKA Law Letter, supra note 175, at 2. 

383See PKA Law Letter, supra note 175, at 1. 

384See IEX Letter, supra note 77, at 6; PKA Law 

Letter, supra note 175, at 1. 

385See Nasdaq Letter, supra note 77, at 3. 

386See Eversheds Letter, supra note 91, at 2. 

387See IEX Letter, supra note 77, at 6. 

388See Eversheds Letter, supra note 91, at 2; 

Nasdaq Letter, supra note 77, at 3. 

389See Nasdaq Letter, supra note 77, at 3; PKA 

Law Letter, supra note 175, at 1. 

390See Eversheds Letter, supra note 91, at 2. 

391See Eversheds Letter, supra note 91, at 2–3; 

IEX Letter, supra note 77, at 3–4. One commenter 

also discussed aspects of requirements might be 

placed on a national securities exchange extending 

UTP to BSTX-listed Securities that the Exchange 

modified in Amendment No. 2 to SR–BOX–2019– 

19. See Eversheds Letter, supra note 91, at 3. 

392 In the Amended BSTX Governance Proposal, 

the Exchange states that Overstock, which is a 

publicly held corporation, wholly owns Medici 

Ventures, Inc., which owns 80.07% of tZERO. See 

Amended BSTX Governance Proposal, supra note 

17, 85 FR at 50851. 

393See PKA Law Letter, supra note 175, at 2. 

394See IEX Letter, supra note 77, at 5. 

395See IEX Letter, supra note 77, at 6. 

396 15 U.S.C. 78f(b)(5). 

397 15 U.S.C. 78s(b)(2). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 90363 

(Nov. 5, 2020), 85 FR 71964 (Nov. 12, 2020). 

4 15 U.S.C. 78s(b)(2). 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

proposal’s compatibility with DTC and 

NSCC infrastructure; 382 the liquidity of 

Securities; 383 how the end-of-day 

Security ownership balance reporting 

mechanism would affect short sales, 

including the locate process, clearing, 

settling, and market maker compliance 

with short sale rules; 384 how end-of-day 

Security ownership balances would 

affect the margin methodology for 

member self-calculation; 385 the 

potential liability of custodians for 

differences between DTC records and 

end-of-day Security ownership 

balances; 386 the proposed listing 

requirements’ compliance with penny 

stock rules; 387 the proposal’s 

compliance with the anti-fraud or 

customer protection provisions of the 

Exchange Act or other Commission 

regulations; 388 Security ownership 

verification, including for purposes of 

compliance with know-your-customer 

and anti-money laundering rules; 389

access to the end-of-day Security 

ownership balance records and the 

safeguarding of customer non-public 

information; 390 the requirements of 

Exchange Act Rule 12f-5 relating to the 

extension of UTP by other national 

securities exchanges to BSTX-listed 

Securities; 391 the relationship among 

tZERO, Overstock.com, Inc. 

(‘‘Overstock’’),392 and entities related to 

the Exchange; 393 whether any registered 

broker-dealer has indicated its intention 

to become a BSTX Participant; 394 and 

whether the Exchange is still working 

with FINRA regarding end-of-day 

Security ownership balance reporting 

requirements for FINRA members.395

Additional discussion on these topics is 

unnecessary, as they do not bear on the 

basis for the Commission’s decision to 

disapprove this proposal. 

IV. Conclusion 

For the reasons set forth above, the 

Commission does not find, pursuant to 

Section 19(b)(2) of the Exchange Act, 

that the proposed rule change, as 

modified by Amendment No. 1, is 

consistent with the requirements of the 

Exchange Act and the rules and 

regulations thereunder applicable to a 

national securities exchange, and, in 

particular, with Sections 6(b)(1), 6(b)(5), 

and 6(b)(8) of the Exchange Act.396

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,397

that the proposed rule change (SR– 

BOX–2020–14), as modified by 

Amendment No. 1, be, and hereby is, 

disapproved. 

By the Commission. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2020–28536 Filed 12–23–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90726; File No. SR–NYSE– 

2020–89] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To Amend Rule 7.35C 

December 18, 2020. 

On October 23, 2020, New York Stock 

Exchange LLC (‘‘NYSE’’ or ‘‘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: (1) Provide the Exchange the 

authority to facilitate a Trading Halt 

Auction if a security has not reopened 

following a Level 1 or Level 2 trading 

halt due to extraordinary market 

volatility under Rule 7.12 (‘‘MWCB 

Halt’’) by 3:30 p.m.; (2) widen the 

Auction Collar for an Exchangefacilitated Trading Halt Auction 

following an MWCB Halt; (3) provide 

that certain DMM Interest would not be 

cancelled following an Exchangefacilitated Auction; and (4) change the 

Auction Reference Price for Exchangefacilitated Core Open Auctions. The 

proposed rule change was published for 

comment in the Federal Register on 

November 12 2020.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is December 27, 

2020. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

Accordingly, the Commission, pursuant 

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

designates February 10, 2021, as the 

date by which the Commission shall 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove, the proposed 

rule change (File No. SR–NYSE–2020– 

89). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–28511 Filed 12–23–20; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90730; File No. SR–NYSE– 

2020–87] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Amendment No. 1 and Order 

Granting Accelerated Approval of a 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Amend Rule 7.31 

December 18, 2020. 

I. Introduction 

On October 20, 2020, New York Stock 

Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 


tkelley on DSKBCP9HB2PROD with NOTICES