Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 85765 

49 15 U.S.C. 78s(b)(3)(A). 

50 17 CFR 240.19b–4(f)(6). 51 17 CFR 200.30–3(a)(12). 

Rules governing customer accounts, 

margin requirements and trading halt 

procedures. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

as options on the Mini-RUT Index 

satisfy initial listing standards set forth 

in the Rules, and MRUT options will be 

equally available to all market 

participants who wish to trade such 

options. The proposed number and type 

of expirations (i.e., standard, 

Nonstandard, and QIXs), settlement 

(standard A.M.), exercise style, 

application of no position and exercise 

limits, minimum increments, and strike 

price intervals and limitations will 

apply in the same manner to all options 

traded on the Mini-RUT Index. In 

addition to this, the Exchange notes that 

the proposed initial low Market-Maker 

appointment cost for Mini-RUT Index 

options will apply equally to all MarketMakers with an appointment in MRUT 

options and will promote competition 

by incentivizing more Market-Makers to 

obtain an appointment in the newly 

listed class, resulting in liquidity and 

competitive pricing within the class. 

The Exchange does not believe that 

the proposal to list and trade options on 

the Mini-RUT Index, and the proposed 

rules governing the trading of MRUT 

options on the Exchange, will impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because options on the RUT Index, 

including reduced-value options as 

proposed, are proprietary Exchange 

products. To the extent that the advent 

of MRUT options trading on the 

Exchange may make the Exchange a 

more attractive marketplace to market 

participants at other exchanges, such 

market participants are free to elect to 

become market participants on the 

Exchange. As noted above, other option 

products related to the RUT Index, such 

as ETFs based on the RUT Index (e.g., 

IWM and VTWO) and E-mini RUT 

Index futures products, are listed for 

trading on other exchanges. 

The Exchange believes that the 

proposal to list and trade MRUT options 

and the proposed rules that will govern 

the trading of MRUT options on the 

Exchange will promote competition by 

providing investors with a relatively 

low-cost means to hedge their portfolios 

with a smaller outlay of capital and may 

facilitate overall participation in the 

market for RUT options, which may 

help to maintain the depth and liquidity 

of the market for RUT options, to the 

benefit of all investors. 

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 

Because the foregoing proposed rule 

change does not: 

A. Significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. 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) of the 

Act 49 and Rule 19b–4(f)(6) 50

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–2020–118 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–2020–118. 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–CBOE–2020–118 and 

should be submitted on or before 

January 19, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.51

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–28681 Filed 12–28–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90747; File No. SR–DTC– 

2020–019] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing of Proposed Rule Change To 

Update the Distributions Service Guide 

December 21, 2020. 

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

Securities Exchange Act of 1934 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
85766 Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 

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

2 17 CFR 240.19b–4. 

3Capitalized terms not defined herein are defined 

in the Rules, By-Laws and Organization Certificate 

of DTC (‘‘Rules’’) available at http://www.dtcc.com/ 

∼/media/Files/Downloads/legal/rules/dtc_rules.pdf. 

4Available at http://www.dtcc.com/∼/media/ 

Files/Downloads/legal/service-guides/Service%20

Guide%20Distributions.pdf. 

5The ‘‘ex-date’’ or ‘‘ex-dividend date’’ is the day 

the stock starts trading without the value of its next 

dividend payment. 

6The record date is the cut-off date used to 

determine which shareholders are entitled to a 

corporate dividend. The record date will usually be 

the day following the ex-date. 

7The payable date refers to the date that any 

declared stock dividends are due to be paid out. 

Investors who purchased their stock before the exdate are eligible to receive dividends on the payable 

date. 

8 It is important to note that the physical 

movement of securities (such as, deposits, 

withdrawals-by-transfer, and certificates-ondemand) are not transactions that are included in 

the interim accounting process; thus, they do not 

result in adjustments between Participants. 

9Please note that on the rare occasion that a 

corporate action event (e.g., a merger) would occur 

during an interim period, special processing 

arrangements with the industry may be required. 

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

notice is hereby given that on December 

9, 2020, The Depository Trust Company 

(‘‘DTC’’) 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 clearing 

agency. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change 3 consists of 

amendments to the DTC Corporate 

Actions Distributions Service Guide 

(‘‘Distributions Guide’’) 4 to (i) more 

clearly explain the interim accounting 

process, generally; (ii) provide an 

explanation for the interim accounting 

process for a security being delisted; (iii) 

change how DTC manages interim 

accounting when an ex-date 5 is changed 

due to an unscheduled closure of a 

stock exchange; (iv) remove the 

statements that (A) DTC’s U.S. Tax 

Withholding (‘‘UTW’’) service is 

available to subaccounts of U.S. 

Participants, and (B) users of the UTW 

service must enter into a Withholding 

Agent Agreement; (v) update the 

copyright date in the Important Legal 

Information section; and (vi) make 

certain conforming and technical 

changes, as described in greater detail 

below. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency 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 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The purpose of the proposed rule 

change is to update the Distributions 

Guide to (i) more clearly explain the 

interim accounting process, generally; 

(ii) provide an explanation for the 

interim accounting process for a 

security being delisted; (iii) change how 

DTC manages interim accounting when 

an ex-date is changed due to an 

unscheduled closure of a stock 

exchange; (iv) remove the statements 

that (A) the UTW service is available to 

subaccounts of U.S. Participants, and 

(B) users of the UTW service must enter 

into a Withholding Agent Agreement; 

(v) update the copyright date in the 

Important Legal Information section; 

and (vi) make certain conforming and 

technical changes. 

Interim Accounting 

Interim accounting is an important 

part of the entitlements and allocations 

process for distributions. The interim 

period (also referred to as the due bill 

period) is the period during which a 

settling trade has due bills attached to 

it. A due bill is an indication of a seller’s 

obligation to deliver a pending 

distribution (e.g., cash dividend, stock 

dividend, interest payment, etc.) to the 

buyer in a securities transaction. For 

distributions that are the subject of a 

due bill, the interim period extends 

from the Interim Accounting Start Date 

(i.e., record date +1) 6 up to the Due Bill 

Redemption Date (which is typically exdate +1 for equities and payable date 

¥1 for debt).7

Normally, the registered holder of a 

security on the close of business on the 

record date is entitled to the 

distribution. There are times, however, 

when that is not the case. Such times 

generally fall into two categories. First, 

for equity issues, there are times when 

the listed exchange will declare an exdate that is not one business day prior 

to the record date (e.g., an ex-date that 

equals payable date +1). At such times, 

a buyer is entitled to the distribution 

when the registered holder of an equity 

issue sells the security prior to the exdate. Second, for most bonds, the buyer 

of the security is entitled to the interest 

payment (i.e., the distribution) on trades 

that settle up to and including the day 

before the payable date, even though the 

buyer is not the record date holder. 

Without DTC’s interim accounting 

process, due-bill processing can be more 

cumbersome. For example, trades that 

settle after the record date ‘‘with 

distribution,’’ thus entitling the buyer to 

the distribution, will have a due bill 

attached to them (i.e., the seller owes 

the buyer the distribution). Without 

DTC’s interim accounting process, the 

distribution will need to be handled 

between the seller and the buyer outside 

of DTC’s distribution processing service, 

potentially in the form of a payment 

order, wire or postdated check equal to 

the amount of the distribution. 

With DTC’s interim accounting 

process, during a due bill period, DTC 

will track all settled activity, where the 

receiver (typically a buyer) is entitled to 

a distribution, and adjust Participants’ 

record-date positions, crediting the 

receiver (typically a buyer) and debiting 

the deliverer (typically a seller) the 

distribution amount.8 This process 

helps ensure accurate payment on the 

payable date and eliminate timeconsuming, costly paper processing. 

In order to provide a clearer 

understanding of the interim accounting 

process, generally, DTC proposes to 

update the Distributions Guide to better 

reflect the description provided here. 

Interim Accounting on a Security Being 

Delisted 

Listed exchanges are often unable to 

announce an ex-date that is on or after 

the date the corresponding security is 

being delisted. In these instances, if the 

listed exchange does not declare an exdate, but it provides direction that 

trades in that security up to a specified 

date include the distribution, then DTC 

will capture interim accounting based 

on the exchange’s direction.9

Following an exchange’s direction in 

such circumstances has been a 

longstanding DTC practice; however, 

that practice is not clearly described in 

the Distributions Guide. As such, DTC 

proposes to update the Distributions 

Guide to reflect the description 

provided here. 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 85767 

10See, e.g., FINRA Rule 11140—Transactions in 

Securities ‘‘Ex-Dividend,’’ ‘‘Ex-Rights’’ or ‘‘ExWarrants’’ available at https://www.finra.org/rulesguidance/rulebooks/finra-rules/11140. 

11 DTC has participated in various conversations 

with exchanges, industry representatives, and 

Participants to better understand and help address 

this issue. 

12 Distributions Guide, U.S. Tax Withholding, 

supra note 4. 

13See 26 CFR 1.1441–7(a). 

14 15 U.S.C. 78q–1(b)(3)(F). 

15 17 CFR 240.17Ad–22(e)(21). 

16 15 U.S.C. 78q–1(b)(3)(F). 

17 Id. 

Interim Accounting for an Ex-Date 

Change Due to Unscheduled Closing of 

a Stock Exchange 

Occasionally, there is an unscheduled 

closing of one or more stock exchanges 

(e.g., a national day of mourning, an 

event causing significant market 

disruption or regional impact, etc.). 

During an unscheduled closing, a listed 

exchange will typically move ex-dates 

that were scheduled for that date to the 

next business day that the exchange is 

open, which is usually the record date. 

Such a move is necessary because exdates must occur on a business day that 

the listed exchange is open.10

Currently, when there is an 

unscheduled closing of a stock exchange 

and an ex-date is moved, DTC continues 

to apply the interim accounting process 

described above. However, because exdate and record date now would be the 

same date (due to the exchange moving 

the ex-date to account for the 

unscheduled closure) and because the 

interim accounting process is based on 

a two-day settlement cycle, this results 

in due bills being applied to activity one 

day after record date. This, however, is 

not the intended result of the exchanges 

moving the ex-date. It is DTC’s general 

understanding that when there is an 

unscheduled closure, the intent is for 

the last day of trading with a due bill 

to be the business day prior to the 

unscheduled closure because there 

should not be any executed trades in the 

security on the day of closure.11

As a result of DTC continuing to 

apply its standard interim accounting 

process under such circumstances, 

Participants must then perform 

adjustments to reverse the interim 

accounting on activity to which the 

interim accounting should not have 

applied, creating unnecessary work for 

the Participants. Therefore, to avoid the 

need for such adjustments, DTC 

proposes to no longer let the moving of 

an ex-date impact the interim 

accounting process when the change is 

the result of an unexpected closure of a 

stock exchange. 

UTW Service 

DTC’s UTW service helps ensure that 

the appropriate non-resident alien 

withholding tax is applied to U.S.- 

sourced income paid to DTC’s direct 

non-U.S. Participants. The applicable 

withholding tax is determined based on 

the type of income being paid along 

with the tax forms provided by the 

Participant. 

The Distributions Guide currently 

states that the UTW service is available 

to non-U.S. Participants, ‘‘including 

subaccounts of U.S. participants’’ and 

that ‘‘Users [of the UTW service] must 

enter into a Withholding Agent 

Agreement’’ (emphasis added).12

However, after performing a periodic 

review of the Distributions Guide, DTC 

determined that these two statements 

need to be removed. 

Pursuant to U.S. tax regulations,13

DTC, as a withholding agent, is 

obligated to withhold U.S. tax on 

payments it makes to its non-U.S. 

Participants. This obligation does not 

apply to U.S. Participants, only nonU.S. Participants. It is DTC’s 

understanding that U.S. tax regulations 

do not contemplate a process under 

which DTC would withhold tax 

obligations of its U.S. Participants. 

However, DTC’s obligation does apply 

regardless of whether there is or is not 

an agreement between DTC and its 

Participants to do so. Therefore, DTC 

proposes to remove (A) the ‘‘including 

subaccounts of U.S. participants’’ 

statement because DTC is not able to do 

so, and (B) the Withholding Agent 

Agreement statement because such an 

agreement is unnecessary. 

Changes to the Rules 

To effectuate the proposed changes to 

the Distributions Guide described 

above, (i) the following subsections of 

the ‘‘Interim Accounting’’ section would 

be updated to provide a clearer 

description of the interim accounting 

process, generally, including 

conforming and technical changes: 

‘‘Overview,’’ ‘‘Reasons for Interim 

Accounting,’’ ‘‘Without DTC’s Interim 

Accounting,’’ ‘‘With DTC’s Interim 

Accounting,’’ and ‘‘Interim Accounting 

Usage;’’ (ii) a new ‘‘Interim Accounting 

for an Ex-Date Change Due to 

Unscheduled Closing of a Stock 

Exchange’’ subsection would be added; 

(iii) a new ‘‘Interim Accounting on a 

Security being Delisted’’ subsection 

would be added; and (iv) the ‘‘U.S. Tax 

Withholding’’ section would be updated 

to remove the statements that (A) the 

UTW service is available to subaccounts 

of U.S. Participants, and (B) users of the 

UTW service must enter into a 

Withholding Agent Agreement. Finally, 

the Important Legal Information section 

would be updated to change the 

copyright date from 2019 to 2020. 

Implementation Timeframe 

The proposed changes described 

above would take effect upon approval 

by the U.S. Securities and Exchange 

Commission. 

2. Statutory Basis 

DTC believes that the proposed rule 

change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

DTC, as a registered clearing agency. 

Specifically, DTC believes the proposed 

rule change is consistent with Section 

17A(b)(3)(F) of the Act 14 and Rule 

17Ad–22(e)(21) promulgated under the 

Act,15 for the reasons described below. 

Section 17A(b)(3)(F) of the Act 

requires, in part, that the rules of a 

clearing agency be designed, in general, 

to protect investors and the public 

interest.16 As described above, the 

proposal would update the Distributions 

Guide to more clearly explain the 

interim accounting process and, more 

specifically, provide an explanation of 

the interim accounting process for a 

security being delisted, as well as 

update the copyright date. By providing 

greater clarity and information about 

how the interim accounting process 

works, both generally and for delisted 

securities specifically, as well as 

updating the copyright date, DTC is 

better informing Participants, investors, 

and the general public about how DTC 

manages due bill activity associated 

with Participants’ securities transactions 

and its copyright information. 

The proposal also would remove 

statements in the Distributions Guide 

that the UTW service is available to 

subaccounts of U.S. Participants and 

that users of the UTW service must 

enter into a Withholding Agent 

Agreement, as described above. Because 

DTC cannot offer the UTW service to 

such subaccounts and because requiring 

such an agreement is not necessary, 

removing the statements would clarify 

which Participants may use the UTW 

service and what is required to do so, 

all of which helps to better inform 

Participants, investors, and the general 

public. 

Section 17A(b)(3)(F) of the Act also 

requires, in part, that the rules of a 

clearing agency be designed to remove 

impediments to and perfect the 

mechanism of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions.17

As described above, the proposal would 

change how DTC manages interim 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
85768 Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 

18 Id. 

19 17 CFR 240.17Ad–22(e)(21). 

20 Id. 

accounting when an ex-date is changed 

due to an unscheduled closure of a 

stock exchange, so that DTC would no 

longer capture interim activity that 

results from a stock exchange moving 

ex-dates due to an unexpected closure. 

With this change, Participants would no 

longer need to spend time and energy 

performing adjustments to reverse the 

interim accounting on activity to which 

the interim accounting should not have 

otherwise applied. By freeing 

Participants of this need, the proposal 

would help perfect DTC’s interim 

accounting process for tracking due bills 

associated with Participants’ securities 

transactions. 

For these reasons, DTC believes that 

the proposed rule change is consistent 

with Section 17A(b)(3)(F) of the Act.18

Rule 17Ad–22(e)(21) under the Act 

requires that DTC establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to, 

in part, be efficient and effective in 

meeting the requirements of its 

Participants and the markets it serves.19

As described above, the proposal would 

update the Distributions Guide to (i) 

more clearly explain the interim 

accounting process, generally; (ii) 

provide an explanation for the interim 

accounting process for a security being 

delisted; (iii) no longer apply interim 

accounting when an ex-date is changed 

due to an unscheduled closure of a 

stock exchange; and (iv) remove the 

statements that the UTW service is 

available to subaccounts of U.S. 

Participants, and (B) users of the UTW 

service must enter into a Withholding 

Agent Agreement. 

Collectively these proposed changes 

are designed to more efficiently and 

effectively describe DTC’s interim 

accounting practices, as well as the 

application and requirements of the 

UTW service, so that Participants are 

better informed about the practices, 

generally. With respect to the proposed 

change to no longer apply interim 

accounting when there is an 

unscheduled closure of an exchange, 

specifically, that proposed change is 

designed to more efficiently and 

effectively meet the needs of DTC’s 

Participants, based on discussions with 

Participants. 

Therefore, for the above reasons, DTC 

believes that the proposed rule change 

is designed to help DTC be more 

efficient and effective in meeting the 

requirements of its Participants and the 

markets it serves, consistent with Rule 

17Ad–22(e)(21) under the Act.20

(B) Clearing Agency’s Statement on 

Burden on Competition 

DTC does not believe that the 

proposed changes to the Distributions 

Guide to (i) clarify the interim 

accounting process, generally, (ii) add a 

description regarding DTC’s interim 

accounting process for a security being 

delisted, or (iii) update the copyright 

date, as described above, will have any 

impact on competition because none of 

these changes will alter DTC’s current 

practices. Rather, the changes are 

simply intended to provide more clarity 

and information for Participants. 

Similarly, DTC does not believe the 

proposed changes to the Distributions 

Guide to remove the statements that (A) 

the UTW service is available to 

subaccounts of U.S. Participants, and 

(B) users of the UTW service must enter 

into a Withholding Agent Agreement, as 

described above, will impact 

competition because DTC is not able to 

provide the UTW service to subaccounts 

of U.S. Participants, anyway, and DTC 

will remain obligated to withhold U.S. 

tax on payments it makes to its non-U.S. 

Participants even without an agreement. 

As such, these changes should not have 

any practical implications on 

Participants or DTC’s practices. 

As for the proposed change to the 

Distributions Guide regarding how DTC 

manages interim accounting when an 

ex-date is changed due to an 

unscheduled closure of a stock 

exchange, as described above, DTC 

believes the change may impact 

competition. Specifically, the change 

could promote competition because 

Participants could redirect resources 

that would otherwise have been used to 

reverse the interim accounting to more 

competitive-focused activities. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

DTC has not received or solicited any 

written comments relating to this 

proposal. DTC will notify the 

Commission of any written comments 

received by DTC. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

DTC–2020–019 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–DTC–2020–019. 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 DTC and on DTCC’s website 

(http://dtcc.com/legal/sec-rulefilings.aspx). 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–DTC– 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 85769 

21 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release Nos. 85962 

(May 29, 2019), 84 FR 26188 (June 5, 2019) and 

81225 (July 27, 2017), 82 FR 36033 (August 2, 2017) 

(SR–NYSE–2017–35). 

2020–019 and should be submitted on 

or before January 19, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–28667 Filed 12–28–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90750; File No. SR–NYSE– 

2020–101] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Exchange Rules To Delete Rules That 

Are Not Applicable to Trading on the 

Pillar Trading Platform 

December 21, 2020. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on December 

9, 2020, New York Stock Exchange LLC 

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

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

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 

Exchange rules to delete rules that are 

not applicable to trading on the Pillar 

trading platform or are otherwise 

obsolete. 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 Exchange proposes to amend its 

rules to delete rules that are not 

applicable to trading on the Pillar 

trading platform or are otherwise 

obsolete. 

To effect its transition of trading to 

the Pillar platform, the Exchange 

adopted Rules 1P through 13P. In 

addition, because certain Exchange 

rules pertaining to trading on a floorbased trading platform are not 

applicable to trading on the Pillar 

platform, the Exchange designated 

specified rules governing such trading 

with the following preamble: ‘‘This rule 

is not applicable to trading on the Pillar 

trading platform.’’ 4

On August 22, 2019, the Exchange 

completed its transition of all trading to 

the Pillar platform. Because the rules 

that are not applicable to trading on the 

Pillar trading platform are now obsolete, 

the Exchange proposes to delete rules 

that have been replaced by a Pillar rule. 

The following chart sets forth the 

proposed rules for deletion (left-hand 

column) and applicable Pillar rule 

(right-hand column): 

Rule proposed for deletion Applicable Pillar rule 

Rule 4 (Stock) ........................................................................................... Rule 1.1(r) (NMS Stock). 

Rule 7 (Exchange BBO) ........................................................................... Rule 1.1(c) (BBO). 

Rule 13 (Orders and Modifiers), provided that the Exchange proposes 

to retain the definition of ‘‘retail’’ modifier as set forth in Rule 13(f)(2) 

and proposes to rename Rule 13 as ‘‘Retail Modifiers.’’ 

Rule 7.31 (Orders and Modifiers). 

Rule 14 (Bid or Offer Deemed Regular Way) .......................................... Rule 7.8 (Bid or Offer Deemed Regular Way). 

Rule 15 (Pre-Opening Indications and Opening Order Imbalance Information).Rule 7.35 (General) and Rule 7.35A (DMM-Facilitated Core Open and 

Trading Halt Auctions). 

Rule 15A (Order Protection Rule) ............................................................ Rule 7.37 (Order Execution and Routing). 

Rule 19 (Locking or Crossing Protected Quotations in NMS Stocks) ..... Rule 7.37 (Order Execution and Routing). 

Rule 51 (Hours for Business) ................................................................... Rule 7.1 (Hours of Business) and Rule 7.2 (Holidays). 

Rule 52 (Dealings on the Exchange—Hours) .......................................... Rule 7.34 (Trading Sessions). 

Rule 55 (Unit of Trading—Stocks and Bonds) ......................................... Rule 7.5 (Trading Units). 

Rule 56 (Unit of Trading—Rights) ............................................................ Rule 7.5 (Trading Units). 

Rule 60 (Dissemination of Quotations) .................................................... Rule 7.17 (Firm Orders and Quotes). 

Rule 61 (Recognized Quotations) ............................................................ Rule 7.5 (Trading Units). 

Rule 62 (Variations) .................................................................................. Rule 7.6 (Trading Differentials). 

Rule 70 (Execution of Floor Broker Interest), provided that the Exchange proposes to retain Supplementary Material .30 and .40 to 

this Rule and proposes to rename Rule 70 as ‘‘Operation of an Exchange-Approved Booth Premise’’.

Rule 7.31 (Orders and Modifiers). 

Rule 72 (Priority of Bids and Offers and Allocation of Executions), provided that the Exchange proposes to retain paragraph (d) and Supplementary Material .10 of this Rule and proposes to rename Rule 

72 as ‘‘Priority of Cross Transactions’’.

Rule 7.36 (Order Ranking and Display) and Rule 7.37 (Order Execution and Routing). 

Rule 79A (Miscellaneous Requirements on Stock Market Procedures) .. Rule 7.36 (Order Ranking and Display) and Rule 7.37 (Order Execution and Routing). 

Rule 80C (Limit Up-Limit Down Plan and Trading Pauses in Individual 

Securities Due to Extraordinary Market Volatility).

Rule 7.11 (Limit Up-Limit Down Plan and Trading Pauses in Individual 

Securities Due to Extraordinary Market Volatility). 

Rule 107C (Retail Liquidity Program) ...................................................... Rule 7.44 (Retail Liquidity Program).


KHAMMOND on DSKJM1Z7X2PROD with NOTICES