85752 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. 

Paperwork Reduction Act and are not 

derived from a comprehensive or even 

representative survey or study of the 

costs of Commission rules and forms. 

Compliance with the collection of 

information requirements of rule 489 

and Form F–N is mandatory to obtain 

the benefit of the exemption. Responses 

to the collection of information will not 

be kept confidential. An agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a 

currently valid OMB control number. 

Written comments are invited on: (a) 

Whether the collection of information is 

necessary for the proper performance of 

the functions of the Commission, 

including whether the information has 

practical utility; (b) the accuracy of the 

Commission’s estimate of the burden of 

the collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

Please direct your written comments 

to David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Cynthia 

Roscoe, 100 F Street NE, Washington, 

DC 20549; or send an email to: PRA_

Mailbox@sec.gov. 

Dated: December 22, 2020. 

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28771 Filed 12–28–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–267, OMB Control No. 

3235–0272] 

Proposed Collection; Comment 

Request 

Upon Written Request Copies Available 

From: Securities and Exchange 

Commission Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 11a–2 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission (the 

‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 11a–2 (17 CFR 270.11a–2) under 

the Investment Company Act of 1940 

(15 U.S.C. 80a–1 et seq.) permits certain 

registered insurance company separate 

accounts, subject to certain conditions, 

to make exchange offers without prior 

approval by the Commission of the 

terms of those offers. Rule 11a–2 

requires disclosure, in certain 

registration statements filed pursuant to 

the Securities Act of 1933 (15 U.S.C. 77a 

et seq.) of any administrative fee or sales 

load imposed in connection with an 

exchange offer. 

There are currently 676 registrants 

governed by Rule 11a–2. The 

Commission includes the estimated 

burden of complying with the 

information collection required by Rule 

11a–2 in the total number of burden 

hours estimated for completing the 

relevant registration statements and 

reports the burden of Rule 11a–2 in the 

separate Paperwork Reduction Act 

(‘‘PRA’’) submissions for those 

registration statements (see the separate 

PRA submissions for Form N–3 (17 CFR 

274.11b), Form N–4 (17 CFR 274.11c) 

and Form N–6 (17 CFR 274.11d). The 

Commission is requesting a burden of 

one hour for Rule 11a–2 for 

administrative purposes. 

The estimate of average burden hours 

is made solely for the purposes of the 

PRA, and is not derived from a 

comprehensive or even a representative 

survey or study of the costs of 

Commission rules or forms. With regard 

to Rule 11a–2, the Commission includes 

the estimate of burden hours in the total 

number of burden hours estimated for 

completing the relevant registration 

statements and reported on the separate 

PRA submissions for those statements 

(see the separate PRA submissions for 

Form N–3, Form N–4 and Form N–6). 

The information collection requirements 

imposed by Rule 11a–2 are mandatory. 

Responses to the collection of 

information will not be kept 

confidential. 

Written comments are invited on: (a) 

Whether the collection of information is 

necessary for the proper performance of 

the functions of the Commission, 

including whether the information has 

practical utility; (b) the accuracy of the 

Commission’s estimate of the burden of 

the collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

Please direct your written comments 

to David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Cynthia 

Roscoe, 100 F Street NE, Washington, 

DC 20549; or send an email to: PRA_

Mailbox@sec.gov. 

Dated: December 22, 2020. 

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28770 Filed 12–28–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90749; File No. SR–CBOE– 

2020–116] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of a 

Proposed Rule Change To Add 

Options on the Mini-Russell 2000 Index 

(‘‘Mini-RUT’’ or ‘‘MRUT’’) to Its P.M. 

Pilot Program 

December 21, 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 

18, 2020, Cboe Exchange, Inc. 

(‘‘Exchange’’ or ‘‘Cboe Options’’) 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 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to add 

options on the Mini-Russell 2000 Index 

(‘‘Mini-RUT’’ or ‘‘MRUT’’) to its P.M. 

Pilot Program. The text of the proposed 

rule change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.aspx), at the 

Exchange’s Office of the Secretary, and 

at the Commission’s Public Reference 

Room. 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 85753 

3The Exchange plans to, simultaneously with this 

proposal, submit a proposal to list and trade MiniRUT options on the Exchange. The Exchange plans 

to list Mini-RUT options as part of the Nonstandard 

Expiration Pilot Program and as a Quarterly Index 

Expiration (‘‘QIX’’) option. The Exchange intends to 

list and trade Mini-RUT options at the end of 

January 2021. The Exchange notes that trading in 

P.M.-settled MRUT options will operate in the same 

manner as provided in the proposal to list and trade 

Mini-RUT options on the Exchange. That is, P.M.- 

settled MRUT options will have the same Europeanstyle exercise, same number of permissible 

expirations, same exercise interval prices and 

limitations, same position and exercise limits, and 

will trade in the same minimum price increment. 

4As well as SPX options (‘‘SPXPM’’). 

5See Interpretation and Policy .13 to Rule 4.13. 

6The proposed rule change also makes a 

nonsubstantive update to Interpretation and Policy 

.13 to Rule 4.13 by adding a reference to the defined 

term ‘‘SPX’’ after S&P 500 Stock Index and using 

that defined term within the provision in order to 

provide greater clarity and consistency with the 

language throughout Interpretation and Policy .13 

to Rule 4.13. 

7See supra note 3. 

8See Securities Exchange Act Release No. 70087 

(July 31, 2013), 78 FR 47809 (August 6, 2013) (SR– 

CBOE–2013–055) (the ‘‘P.M.-settled XSP Approval 

Order’’). The reporting requirements are also the 

same for SPXPM. See Securities and Exchange Act 

Release No. 68888 (February 8, 2013), 78 FR 10668 

(February 14, 2013) (SR–CBOE–2012–120) (the 

‘‘SPXPM Approval Order’’). 

9See P.M.-settled XSP Approval Order. 

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 purpose of this proposed rule 

change is to amend the Exchange’s pilot 

program for P.M.-settled options on 

standard third-Friday-of-the-month 

(‘‘Expiration Friday’’) in connection 

with the Exchange’s plans to list and 

trade MRUT options.3 MRUT options 

are options on the Mini-RUT Index, the 

value of which is 1/10th the value of the 

Russell 2000 (‘‘RUT’’) Index. Currently, 

the Exchange has in place a pilot 

program under Interpretation and Policy 

.13 to Rule 4.13 that allows the 

Exchange to list Mini-SPX (‘‘XSP’’) 

options 4 that expire on Expiration 

Friday, for which the exercise 

settlement value is based on the index 

value derived from the closing prices of 

the component (i.e., P.M.-settled) (the 

‘‘P.M. Pilot Program’’).5 The Exchange 

proposes to add Mini-RUT options to 

the existing P.M. Pilot Program and to 

permit it to list P.M.-settled Mini-RUT 

options, for which the exercise 

settlement value will be based on the 

index value derived from the closing 

prices of the on the last trading day 

prior to expiration, on a pilot basis 

(currently set to expire on May 3, 

2021).6 The Exchange notes that, like 

proposed MRUT options, XSP options 

are reduced-value options (1/10th) 

compared to SPX options that offer 

individual investors lower cost options 

to obtain the potential benefits of 

options on a broad-based index (the S&P 

500 Index), and are likewise designed to 

provide options overlying the highervalued SPX Index more readily 

available as an investing tool and at 

more affordable prices for the average 

retail investor. Therefore, the Exchange 

believes that because both mini-index 

options are intended for the same 

investor-base, providing the same P.M.- 

settlement opportunities for both XSP 

and MRUT options is appropriate. The 

Exchange believes permitting the 

trading of MRUT options on a P.M.- 

settled basis will encourage greater 

trading in MRUT options once listed 

and traded on the Exchange.7

The Exchange proposes to abide by 

the same reporting requirements for the 

trading of P.M.-settled MRUT options 

that it does for the trading of P.M.- 

settled XSP options.8 The Exchange 

proposes to include data regarding P.M.- 

settled MRUT options as it does for 

P.M.-settled XSP options in the pilot 

program report that it submits to the 

Commission at least two months prior to 

the expiration date of the P.M. Pilot 

Program (the ‘‘annual report’’).9

Specifically, the Exchange submits 

annual reports to the Commission that 

contain an analysis of volume, open 

interest, and trading patterns in 

connection with products in the P.M. 

Pilot Program. The analysis examines 

trading in products in the P.M. Pilot 

Program, as well as trading in the 

securities that comprise the underlying 

index. Additionally, for series that 

exceed certain minimum open interest 

parameters, the annual reports provide 

analysis of index price volatility and 

share trading activity. 

Going forward, the Exchange will 

include the same analysis of P.M.- 

settled MRUT options, as well as trading 

in securities that comprise the RUT 

Index (as MRUT options are based on 

1/10th the value of the RUT Index), in 

the annual reports. Also, like it 

currently does for P.M.-settled XSP 

options, the Exchange will submit 

periodic interim reports for P.M.-settled 

MRUT options that contain some, but 

not all, of the information contained in 

the annual reports. 

The pilot reports will both contain the 

following volume and open interest 

data: 

(1) Monthly volume aggregated for all 

trades; 

(2) monthly volume aggregated by 

expiration date; 

(3) monthly volume for each 

individual series; 

(4) month-end open interest 

aggregated for all series; 

(5) month-end open interest for all 

series aggregated by expiration date; and 

(6) month-end open interest for each 

individual series. 

The annual reports will also contain 

the information noted in Items (1) 

through (6) above for Expiration Friday, 

A.M.-settled, RUT index options traded 

on Cboe Options, as well as the 

following analysis of trading patterns in 

P.M.-settled MRUT options series in the 

Pilot Program: 

(1) A time series analysis of open 

interest; and 

(2) an analysis of the distribution of 

trade sizes. 

Finally, for series that exceed certain 

minimum parameters, the annual 

reports will contain the following 

analysis related to index price changes 

and underlying share trading volume at 

the close on Expiration Fridays: 

(1) A comparison of index price 

changes at the close of trading on a 

given Expiration Friday with 

comparable price changes from a control 

sample. The data includes a calculation 

of percentage price changes for various 

time intervals and compare that 

information to the respective control 

sample. Raw percentage price change 

data as well as percentage price change 

data normalized for prevailing market 

volatility, as measured by the Cboe 

Volatility Index (VIX), is provided; and 

(2) a calculation of share volume for 

a sample set of the component securities 

representing an upper limit on share 

trading that could be attributable to 

expiring in-the-money series. The data 

includes a comparison of the calculated 

share volume for securities in the 

sample set to the average daily trading 

volumes of those securities over a 

sample period. 

The minimum open interest 

parameters, control sample, time 

intervals, method for randomly selecting 

the component securities, and sample 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
85754 Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 

10See also SPXPM Approval Order. 11P.M. Pilot products data and analyses are made 

available at https://www.cboe.com/aboutcboe/legalregulatory/national-market-system-plans/pmsettlement-spxpm-data. 12This same rule will apply to MRUT options 

with Nonstandard Expirations and QIXs, as 

proposed in the rule filing to list and trade MRUT 

options. 13See Rule 1.6, which states that unless otherwise 

specified, all times in the Rules are Eastern Time. 14See Rule 4.13(e). 

15See Securities Exchange Act Release No. 69638 

(May 24, 2013), 78 FR 32524 (May 30, 2013) (SR– 

CBOE–2013–055); and P.M.-settled XSP Approval 

Order. 

16See Securities Exchange Act Release No. 90263 

(October 23, 2020), 85 FR 68611 (October 29, 2020) 

(SR–CBOE–2020–100). 17 15 U.S.C. 78f(b). 18 15 U.S.C. 78f(b)(5). 19 Id. 

periods are determined by the Exchange 

and the Commission. In proposing to 

add MRUT options to the P.M. Pilot 

Program, the Exchange will abide by the 

reporting requirements described 

herein, the same reporting requirements 

described in the P.M.-settled XSP 

Approval Order.10 Additionally, the 

Exchange will provide the Commission 

with any additional data or analyses the 

Commission requests because it deems 

such data or analyses necessary to 

determine whether the P.M. Pilot 

Program, including P.M.-settled MRUT 

options as proposed, is consistent with 

the Exchange Act. As it does for current 

P.M. Pilot products, the Exchange will 

make public any data and analyses in 

connection with P.M.-settled MRUT 

options it submits to the Commission 

under the Pilot Program.11

Overall, the Exchange believes that 

permitting the trading of MRUT options 

on a P.M.-settled basis will encourage 

greater trading in MRUT options. The 

Exchange anticipates high customer 

demand for P.M.-settled MRUT options 

as they will provide market participants, 

particularly smaller-sized investors and 

retail customers, an opportunity to 

benefit from exposure to the broadbased RUT Index market with a 

manageably sized contract that has the 

flexibility of a P.M.-settlement. 

Additionally, the Exchange proposes 

to amend Rule 5.1, which governs 

trading days and hours, in conjunction 

with the proposed addition of MRUT 

options to the P.M.-settled Pilot 

Program. Rule 5.1(b)(2)(C) currently 

provides that on their last trading day, 

Regular Trading Hours for P.M.-settled 

XSP options 12 may be effected on the 

Exchange between 9:30 a.m. and 4:00 

p.m. Eastern Time 13 (as opposed to the 

9:30 a.m. to 4:15 p.m. Regular Trading 

Hours for options with those expirations 

that are non-expiring). The proposed 

rule change amends Rule 5.1(b)(2)(C) to 

include P.M.-settled MRUT options. The 

Exchange expects that MRUT options, 

like SPX, XSP and RUT options (with 

Nonstandard Expirations, i.e., P.M.- 

settled Weekly and End of Month 

(‘‘EOM’’) RUT options),14 will typically 

be priced in the market based on 

corresponding futures values. The 

primary listing markets for the 

component securities that comprise the 

RUT Index (and thus, Mini-RUT Index) 

close trading in those securities at 4:00 

p.m., just as the primary listing markets 

for the component securities that 

comprise the SPX Index (on which SPX 

and XSP options are based) close 

trading at 4:00 p.m. The primary listing 

exchanges for the component securities 

disseminate closing prices for the 

component securities, which are used to 

calculate the exercise settlement value 

of the RUT Index. The Exchange 

believes that, under normal trading 

circumstances, the primary listing 

markets have sufficient bandwidth to 

prevent any data queuing that may 

cause any trades that are executed prior 

to the closing time from being reported 

after 4:00 p.m. If trading in expiring 

P.M.-settled MRUT options continued 

an additional fifteen minutes until 4:15 

p.m. on their last trading day, expiring 

MRUT options could not be priced on 

corresponding futures values, but rather 

would have to be priced on the known 

cash value. At the same time, the prices 

of non-expiring P.M.-settled MRUT 

options series would continue to move 

and likely be priced in response to 

changes in corresponding futures prices. 

As a result, a potential pricing 

divergence could occur between 4:00 

p.m. and 4:15 p.m. on the final trading 

day in expiring P.M.-settled MRUT 

options (e.g., a switch from pricing off 

of futures to cash). The Exchange 

understands that the switch from 

pricing off of futures to cash can be a 

difficult and risky crossover for 

liquidity providers. As a result, if 

expiring P.M.-settled contracts closed at 

4:15 p.m., Market-Makers may react by 

widening spreads in order to 

compensate for the additional risk. 

Therefore, in order to mitigate potential 

investor confusion and the potential for 

increased costs to investors, the 

Exchange believes that it is appropriate 

to cease trading in the expiring P.M.- 

settled MRUT options at 4:00 p.m., as it 

already does for expiring P.M.-settled 

XSP options and RUT options with 

Nonstandard Expirations for the same 

aforementioned reasons.15 The 

Exchange does not believe that the 

proposed rule change will impact 

volatility on the underlying cash market 

comprising the RUT Index at the close 

on Expiration Fridays, as it already 

closes trading on the last trading day for 

expiring P.M.-settled options at 4:00 

p.m. (such as P.M.-settled XSP options 

and P.M.-settled Weekly and EOM RUT 

options), which the Exchange does not 

believe has had an adverse impact on 

fair and orderly markets on Expiration 

Fridays for the underlying stocks 

comprising the corresponding 

indexes.16

With regard to the impact of this 

proposal on system capacity, the 

Exchange has analyzed its capacity and 

represents that it believes that the 

Exchange and OPRA have the necessary 

systems capacity to handle any potential 

additional traffic associated with trading 

of P.M.-settled MRUT options. The 

Exchange does not believe that its 

Trading Permit Holders (‘‘TPHs’’) will 

experience any capacity issues as a 

result of this proposal and represents 

that it will monitor the trading volume 

associated with any possible additional 

options series listed as a result of this 

proposal and the effect (if any) of these 

additional series on market 

fragmentation and on the capacity of the 

Exchange’s automated systems. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.17 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 18 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 19 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange does not 

believe that the addition of MRUT 

options to the P.M. Pilot Program will 

raise any prohibitive regulatory 

concerns, nor adversely impact fair and 

orderly markets on Expiration Fridays 

for the underlying stocks comprising the 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 85755 

20Trading in SPXPM has been permitted since 

2013, as well. The Exchange notes too that for 

roughly five years (1987 to 1992) it listed and 

traded an A.M.-settled S&P 500 index option (called 

NSX) at the same time it listed and traded a P.M.- 

settled S&P 500 index option (called SPX) and did 

not observe any market disruptions as a result of 

offering both products. 

RUT Index. The Exchange has not 

experienced any meaningful regulatory 

concerns, nor adverse impact on fair 

and orderly markets, in connection with 

the P.M. Pilot Program that has 

permitted trading of P.M.-settled XSP 

since 2013, which have a similar 

purpose and likely similar investor base 

as MRUT options.20 Additionally, the 

proposed rule change will provide 

investors with an opportunity to trade 

MRUT options with a P.M.-settlement 

feature on the Exchange subject to 

transparent exchange-based rules as 

well as price discovery and liquidity, as 

opposed to alternatively trading these 

products in the over-the-counter market. 

Investors will benefit from the 

opportunity to trade in association with 

this product on Expiration Fridays. 

Indeed, market participants, particularly 

smaller-sized investors and retail 

customers, will benefit from exposure to 

the broad-based RUT Index market with 

a manageably sized contract that has the 

flexibility of a P.M.-settlement, thereby 

removing impediments to a free and 

open market consistent with the Act. 

In addition, the Exchange believes 

that the proposal to end trading at 4:00 

p.m. on the last trading day for 

transactions in expiring P.M.-settled 

MRUT options will prevent continued 

trading on a product after the exercise 

settlement value has been fixed, thereby 

mitigating potential investor confusion 

and the potential for increased costs to 

investors as a result of potential pricing 

divergence at the end of the trading day. 

Given the significant changes in the 

closing procedures of the primary 

markets in recent decades, the Exchange 

does not believe that the proposed P.M.- 

settled MRUT options and 4:00 p.m. 

closing time on Expiration Fridays will 

adversely impact the maintenance of a 

fair and orderly market or the protection 

of investors because the risks of 

potential impact of P.M.-, cash-settled 

index derivatives on the underlying 

cash markets are greatly reduced today 

by the enhanced closing procedures 

currently in place at the primary equity 

markets. The Exchange notes also that it 

will include analysis in connection with 

P.M.-settled MRUT options, in the same 

manner that it currently does for other 

P.M.-settled options, in the pilot reports 

it submits to the Commission, and will 

provide the Commission with any 

additional data or analyses the it may 

request because it deems such data or 

analyses necessary to determine 

whether the Pilot Program, including 

P.M.-settled MRUT options as proposed, 

is consistent with the Exchange Act. 

The Exchange represents that it believes 

that it has the necessary systems 

capacity to support any additional 

traffic associated with trading of P.M.- 

settled MRUT and does not believe that 

its TPHs will experience any capacity 

issues as a result of this proposal. The 

Exchange will monitor the trading 

volume associated with any possible 

additional options series listed and the 

effect (if any) of these additional series 

on market fragmentation and on the 

capacity of the Exchange’s automated 

systems. 

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 

because P.M.-settled MRUT options will 

be available to all market participants 

and the proposed 4:00 p.m. closing time 

on Expiration Fridays will apply equally 

to all market participants trading in 

MRUT options. 

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 P.M.-settled 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 stated 

above, the listing and trading of P.M.- 

settled MRUT options on the Exchange 

will subject such options to transparent 

exchange-based rules as well as price 

discovery and liquidity, as opposed to 

alternatively trading these products in 

the over-the-counter market. 

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 

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 Exchange 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– 

CBOE–2020–116 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–2020–116. 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 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES
85756 Federal Register / Vol. 85, No. 249 / Tuesday, December 29, 2020 / Notices 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Participant’’ means any Participant 

Firm that holds a valid Trading Permit and any 

person associated with a Participant Firm who is 

registered with the Exchange. A Participant shall be 

considered a ‘‘member’’ of the Exchange for 

purposes of the Exchange Act. See Article 1, Rule 

1(s). 

4 If NYSE Chicago seeks to provide additional 

temporary relief from the rule requirements 

identified in this proposed rule change beyond 

April 30, 2021, NYSE Chicago will submit a 

separate rule filing to further extend the temporary 

extension of time. 

5See Exchange Act Release No. 90617 (December 

9, 2020), 85 FR 81258 (December 15, 2020) (SR– 

FINRA–2020–043) (the ‘‘FINRA Filing’’). The 

Exchange notes that the FINRA Filing also provides 

temporary relief to individuals registered with 

FINRA as Operations Professionals under FINRA 

Rule 1220. The Exchange does not have a 

registration category for Operations Professionals 

and therefore, the Exchange is not proposing to 

adopt that aspect of the FINRA Filing. 

6See https://www.finra.org/rules-guidance/keytopics/covid-19/faq#qe. 

7At the outset of the COVID–19 pandemic, all 

FINRA qualification examinations were 

administered at test centers operated by Prometric. 

Based on the health and welfare concerns resulting 

from COVID–19, in March Prometric closed all of 

its test centers in the United States and Canada and 

began to slowly reopen some of them at limited 

capacity in May. Currently, Prometric has resumed 

testing in many of its United States and Canada test 

centers, at either full or limited occupancy, based 

on local and government mandates. 

8 Interpretation and Policy .03 under NYSE 

Chicago Article 6, Rule 13 is the corresponding rule 

to FINRA Rule 1210.04. 

9FINRA Rule 1210.04 (Requirements for 

Registered Persons Functioning as Principals for a 

Limited Period) allows a member firm to designate 

certain individuals to function in a principal 

capacity for 120 calendar days before having to pass 

an appropriate principal qualification examination. 

Interpretation and Policy .03 under NYSE Chicago 

Article 6, Rule 13 provides the same allowance to 

Participants. 

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–2020–116, 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. 2020–28655 Filed 12–28–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90762; File No. SR– 

NYSECHX–2020–33] 

Self-Regulatory Organizations; NYSE 

Chicago, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Effective 

Date in Interpretation and Policy .10 

Under NYSE Chicago Article 6, Rule 13 

December 21, 2020. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on December 15, 2020, the NYSE 

Chicago, Inc. (‘‘NYSE Chicago’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 a rule change 

to extend the effective date in 

Interpretation and Policy .10 

(Temporary Extension of the Limited 

Period for Registered Persons to 

Function as Principals) under NYSE 

Chicago Article 6, Rule 13 (Registration 

Requirements) applicable to 

Participants, from December 31, 2020 to 

April 30, 2021. 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend the 

effective date in Interpretation and 

Policy .10 (Temporary Extension of the 

Limited Period for Registered Persons to 

Function as Principals) under NYSE 

Chicago Article 6, Rule 13 (Registration 

Requirements) applicable to 

Participants,3 from December 31, 2020 

to April 30, 2021. The proposed rule 

change would extend the 120-day 

period that certain individuals can 

function as a principal without having 

successfully passed an appropriate 

qualification examination through April 

30, 2021,4 and would apply only to 

those individuals who were designated 

to function as a principal prior to 

January 1, 2021. This proposed rule 

change is based on a filing recently 

submitted by the Financial Regulatory 

Authority, Inc. (‘‘FINRA’’) 5 and is 

intended to harmonize the Exchange’s 

registration rules with those of FINRA 

so as to promote uniform standards 

across the securities industry. 

The COVID–19 pandemic is an 

unpredictable, exogenous event that has 

resulted in unavoidable disruptions to 

the securities industry and impacted 

member firms, regulators, investors and 

other stakeholders. In response to 

COVID–19, earlier this year FINRA 

began providing temporary relief by way 

of frequently asked questions 

(‘‘FAQs’’) 6 to address disruptions to the 

administration of FINRA qualification 

examinations caused by the pandemic 

that have significantly limited the 

ability of individuals to sit for 

examinations due to Prometric test 

center capacity issues.7

FINRA published the first FAQ on 

March 20, 2020, providing that 

individuals who were designated to 

function as principals under FINRA 

Rule 1210.04 8 prior to February 2, 2020, 

would be given until May 31, 2020, to 

pass the appropriate principal 

qualification examination.9 On May 19, 

2020, FINRA extended the relief to pass 

the appropriate examination until June 

30, 2020. On June 29, 2020, FINRA 

again extended the temporary relief 

providing that individuals who were 

designated to function as principals 

under FINRA Rule 1210.04 prior to May 

4, 2020, would be given until August 31, 


KHAMMOND on DSKJM1Z7X2PROD with NOTICES