Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices 163 

14See Approval Order, supra note 7. 

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

16 17 CFR 240.19b–4(f). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

developed based on discussions with 

Participants to enable them to bilaterally 

match and settle cash claim transactions 

at DTC.14 Pursuant to this proposed rule 

change, DTC is establishing an aggregate 

fee of $3.50 per-matched claim. DTC 

believes the fee is equitably allocated 

because, as described above, the fee will 

be divided evenly between the two 

counterparties to a claim, such that each 

side of the claim will be charge $1.75 

per-matched claim, which reflects the 

counterparties’ shared usage of the 

service in settling a claim. 

DTC believes the fee is reasonable 

because, as described above, (i) it is 

consistent with DTC’s cost plus lowmargin markup pricing policy; (ii) it is 

expected to produce a four-year return 

on DTC’s investment in developing 

ClaimConnect, compared to a higher fee 

that would produce a quicker return, 

while helping cover continued 

operating expenses for the service; (iii) 

it is structured so that both parties to a 

claim pay the same amount; (iv) it is 

structured to align charges for the 

service with actual usage of the service; 

and (v) it was set in consideration of a 

similar, existing fee (i.e., the Adjustment 

Service Fee) but knowing that parties to 

a claim will not need to submit 

additional claims and pay additional 

ClaimConnect fees to reach agreement 

on a claim, given the service’s 

validation and matching process. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

DTC does not believe that the 

ClaimConnect fee will have any impact 

on competition. 

As described above, DTC believes that 

the proposed fee is equitable, 

reasonable, and on par with fees for 

other DTC services (e.g., the Adjustment 

Service Fee) already used by 

Participants. As such, there is no 

expectation that this particular fee 

would cause any competitive 

advantages or disadvantages among 

Participants. Moreover, although there 

is no service in direct competition with 

ClaimConnect, Participants are able to 

settle their cash claims without using 

ClaimConnect, as they did prior to DTC 

establishing the service. As such, it will 

be up to Participants to decide whether 

settling claims via the ClaimConnect 

service is worth the cost. If a Participant 

concludes that the manner in which it 

was settling claims prior to 

ClaimConnect (e.g., using internal/ 

proprietary systems, a third-party 

software, or some combination thereof) 

is preferable (whether due to cost, 

functionality, or some other factor), then 

the Participant can simply choose not to 

use ClaimConnect and continue to settle 

claims away from DTC. Given this 

optionality, DTC believes that the 

proposed fee should not place any 

Participants at a relative disadvantage 

compared to other Participants. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

Written comments relating to this 

proposed rule change have not been 

solicited or received. 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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 15 of the Act and paragraph 

(f) 16 of Rule 19b–4 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. 

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–2020–020 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–2020–020. 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– 

2020–020 and should be submitted on 

or before January 25, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–29022 Filed 12–31–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90802; File No. SR– 

CboeBZX–2020–042] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Withdrawal of a Proposed Rule Change 

To Accommodate Exchange Listing 

and Trading of Options-Linked 

Securities 

December 28, 2020. 

On May 15, 2020, Cboe BZX 

Exchange, Inc. (‘‘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 permit Exchange listing and 

trading of Options-Linked Securities. 

The proposed rule change was 

164 Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices 

3See Securities Exchange Act Release No. 88968 

(May 28, 2020), 85 FR 34270. 

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

5See Securities Exchange Act Release No. 89267, 

85 FR 42933 (July 15, 2020). 

6 15 U.S.C. 78s(b)(2)(B). 

7See Securities Exchange Act Release No. 89722, 

85 FR 55337 (September 4, 2020). 

8See Securities Exchange Act Release No. 90444, 

85 FR 74777 (November 23, 2020). The Commission 

designated January 29, 2021, as the date by which 

the Commission shall either approve or disapprove 

the proposed rule change. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Unless otherwise specified, capitalized terms 

used in this rule filing are defined as set forth in 

the Compliance Rule. 

4See Securities Exchange Act Rel. No. 90223 

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

(‘‘Allocation Exemptive Order’’). 

5Section 1.1 of the CAT NMS Plan defines an 

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

Central Repository by an Industry Member that 

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

including subaccount(s), to which executed shares 

are allocated and provides the security that has 

been allocated, the identifier of the firm reporting 

the allocation, the price per share of shares 

allocated, the side of shares allocated, the number 

of shares allocated to each account, and the time of 

the allocation; provided for the avoidance of doubt, 

any such Allocation Report shall not be required to 

be linked to particular orders or executions.’’ 

6See Letter from the Participants to Vanessa 

Countryman, Secretary, Commission, dated August 

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

published for comment in the Federal 

Register on June 3, 2020.3 On July 9, 

2020, pursuant to Section 19(b)(2) of the 

Act,4 the Commission designated a 

longer period within which to approve 

the proposed rule change, disapprove 

the proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.5

On September 1, 2020, the Commission 

instituted proceedings under Section 

19(b)(2)(B) of the Act 6 to determine 

whether to approve or disapprove the 

proposed rule change.7 On November 

17, 2020, the Commission designated a 

longer period within which to issue an 

order approving or disapproving the 

proposed rule change.8 The Commission 

received no comment letters on the 

proposed rule change. On December 23, 

2020, the Exchange withdrew the 

proposed rule change (SR–CboeBZX– 

2020–042). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–29019 Filed 12–31–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90809; File No. SR–LTSE– 

2020–24] 

Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Rule Series 11.600 

December 28, 2020. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

18, 2020, Long-Term Stock Exchange, 

Inc. (‘‘LTSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

LTSE proposes a rule change to 

amend the Rule Series 11.600, the 

Exchange’s compliance rule 

(‘‘Compliance Rule’’) regarding the 

National Market System Plan Governing 

the Consolidated Audit Trail (the ‘‘CAT 

NMS Plan’’ or ‘‘Plan’’) 3 to be consistent 

with a conditional exemption granted 

by the Commission from certain 

allocation reporting requirements set 

forth in Sections 6.4(d)(ii)(A)(1) and (2) 

of the CAT NMS Plan (‘‘Allocation 

Exemption’’).4

The text of the proposed rule change 

is available at the Exchange’s website at 

https://longtermstockexchange.com/, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement on 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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 on the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend the Rule Series 

11.600 to be consistent with the 

Allocation Exemption. The Commission 

granted the relief conditioned upon the 

Participants’ adoption of Compliance 

Rules that implement the alternative 

approach to reporting allocations to the 

Central Repository described in the 

Allocation Exemption (referred to as the 

‘‘Allocation Alternative’’). 

(1) Request for Exemptive Relief 

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

CAT NMS Plan, each Participant must, 

through its Compliance Rule, require its 

Industry Members to record and report 

to the Central Repository, if the order is 

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

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

of the clearing broker or prime broker, 

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

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

the Exchange and the other Participants 

implemented Compliance Rules that 

require their Industry Members that are 

executing brokers to submit to the 

Central Repository, among other things, 

Allocation Reports and the SROAssigned Market Participant Identifier 

of the clearing broker or prime broker, 

if applicable. 

On August 27, 2020, the Participants 

submitted to the Commission a request 

for an exemption from certain allocation 

reporting requirements set forth in 

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

CAT NMS Plan (‘‘Exemption 

Request’’).6 In the Exemption Request, 

the Participants requested that they be 

permitted to implement the Allocation 

Alternative, which, as noted above, is an 

alternative approach to reporting 

allocations to the Central Repository. 

Under the Allocation Alternative, any 

Industry Member that performs an 

allocation to a client account would be 

required under the Compliance Rule to 

submit an Allocation Report to the 

Central Repository when shares/ 

contracts are allocated to a client 

account regardless of whether the 

Industry Member was involved in 

executing the underlying order(s). 

Under the Allocation Alternative, a 

‘‘client account’’ would be any account 

that is not owned or controlled by the 

Industry Member. 

In addition, under the Allocation 

Alternative, an ‘‘Allocation’’ would be 

defined as: (1) The placement of shares/ 

contracts into the same account for 

which an order was originally placed; or 

(2) the placement of shares/contracts 

into an account based on allocation