86584 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Rule 1.1(k) defines ‘‘Exchange Traded Product’’ 

as a security that meets the definition of ‘‘derivative 

securities product’’ in Rule 19b–4(e) under the Act. 

ETPs include, for example, securities listed and 

traded on the Exchange pursuant to the following 

Exchange rules: Rule 5.2(j)(3) (Investment Company 

Units); Rule 5.2(j)(5) (Equity Gold Shares); Rule 

5.2(j)(6) (Index-Linked Securities); Rule 8.100 

(Portfolio Depositary Receipts); Rule 8.200 (Trust 

Issued Receipts); Rule 8.201 (Commodity-Based 

Trust Shares); Rule 8.202 (Currency Trust Shares); 

Rule 8.203 (Commodity Index Trust Shares); Rule 

8.204 (Commodity Futures Trust Shares); Rule 

8.600 (Managed Fund Shares); and Rule 8.700 

(Managed Trust Securities). 

5 ‘‘UTP Security’’ is defined as a security that is 

listed on a national securities exchange other than 

the Exchange and that trades on the Exchange 

pursuant to unlisted trading privileges. See Rule 

1.1. 

6See Securities Exchange Act Release No. 82945 

(March 26, 2018), 83 FR 13553, 13568 (March 29, 

2018) (SR–NYSE–2017–36) (approving Exchange 

rules to trade securities on a UTP basis on the Pillar 

trading platform). 

sent via electronic mail to 

Cyrus.Benson@opm.gov or faxed to 

(202) 606–0910 or via telephone at (202) 

606–4808. 

SUPPLEMENTARY INFORMATION: As 

required by the Paperwork Reduction 

Act of 1995 (Pub. L. 104–13, 44 U.S.C. 

chapter 35) as amended by the ClingerCohen Act (Pub. L. 104–106), OPM is 

soliciting comments for this collection 

(OMB No. 3206–0121). The Office of 

Management and Budget is particularly 

interested in comments that: 

1. Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of functions 

of the agency, including whether the 

information will have practical utility; 

2. Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

3. Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

4. Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submissions 

of responses. 

OPM Form 1496A is used by eligible 

former Federal employees to apply for a 

deferred Civil Service annuity. 

Analysis 

Agency: Retirement Operations, 

Retirement Services, Office of Personnel 

Management. 

Title: Application for Deferred 

Retirement (for Persons Separated on or 

After October 1, 1956). 

OMB Number: 3206–0121. 

Frequency: On occasion. 

Affected Public: Individuals or 

Households. 

Number of Respondents: 2,800. 

Estimated Time per Respondent: 1 

hour. 

Total Burden Hours: 2,800. 

Office of Personnel Management. 

Alexys Stanley, 

Regulatory Affairs Analyst. 

[FR Doc. 2020–28899 Filed 12–29–20; 8:45 am] 

BILLING CODE 6325–38–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90775; File No. SR–NYSE– 

2020–86] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change for a 

New Rule 5.2(j)(8) 

December 22, 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 

18, 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, 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 

The Exchange proposes (1) a new 

Rule 5.2(j)(8) establishing ‘‘generic’’ 

listing standards for Exchange-Traded 

Products that are permitted to operate in 

reliance on Rule 6c–11 under the 

Investment Company Act of 1940, and 

(2) a new Rule 7.18(d)(2) that would 

govern trading halts for listed ExchangeTraded Products. 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 a new Rule 

5.2(j)(8) establishing ‘‘generic’’ listing 

standards for Exchange-Traded Products 

(‘‘ETPs’’) 4 that are permitted to operate 

in reliance on Rule 6c–11 under the 

Investment Company Act of 1940 (the 

‘‘1940 Act’’). The Exchange also 

proposes a new Rule 7.18(d)(2) that 

would govern trading halts for listed 

ETPs. 

Background 

Currently, the Exchange trades 

securities, including ETPs, on its Pillar 

trading platform on an unlisted trading 

privileges (‘‘UTP’’) basis, subject to 

Pillar Platform Rules 1P–13P.5 ETPs 

traded on a UTP basis on the Exchange 

are not assigned to a Designated Market 

Maker (‘‘DMM’’) but are available for 

Floor brokers to trade in Floor-based 

crossing transactions.6

The Exchange’s rules permit it to list 

ETPs under Rules 5P and 8P. 

Specifically, Rules 5P (Securities 

Traded) and 8P (Trading of Certain 

Exchange-Traded Products) provide for 

the listing of certain ETPs on the 

Exchange that (1) meet the applicable 

requirements set forth in those rules, 

and (2) do not have any component 

NMS Stock that is listed on the 

Exchange or is based on, or represents 

an interest in, an underlying index or 

reference asset that includes an NMS 

Stock listed on the Exchange. ETPs 

listed under Rules 5P and 8P would be 

‘‘Tape A’’ listings and traded pursuant 

to the rules applicable to NYSE-listed 

securities. Accordingly, once an ETP is 

listed, it would be assigned to a DMM 

pursuant to Rule 103B and the assigned 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86585 

7See Securities Exchange Act Release No. 87056 

(September 23, 2019), 84 FR 51205 (September 27, 

2019) (SR–NYSE–2019–34) (order approving 

amendments to Rule 104 to specify DMM 

requirements for ETPs listed on the Exchange 

pursuant to Rules 5P and 8P). 

8See Release Nos. 33–10695; IC–33646; File No. 

S7–15–18 (ETFs) (September 25, 2019), 84 FR 

57162 (October 24, 2019) (the ‘‘Rule 6c–11 

Release’’). 

9The Commission observed that the ‘‘rule will 

modernize the regulatory framework for ETFs to 

reflect our more than two decades of experience 

with these investment products. The rule is 

designed to further important Commission 

objectives, including establishing a consistent, 

transparent, and efficient regulatory framework for 

ETFs and facilitating greater competition and 

innovation among ETFs.’’ See Rule 6c–11 Release, 

at 57163. The Commission also stated the following 

regarding the rule’s impact: ‘‘We believe rule 6c– 

11 will establish a regulatory framework that: (1) 

Reduces the expense and delay currently associated 

with forming and operating certain ETFs unable to 

rely on existing orders; and (2) creates a level 

playing field for ETFs that can rely on the rule. As 

such, the rule will enable increased product 

competition among certain ETF providers, which 

can lead to lower fees for investors, encourage 

financial innovation, and increase investor choice 

in the ETF market.’’ Id. at 57204. 

10See Securities Exchange Act Release No. 88625 

(April 13, 2020), 85 FR 21479 (April 17, 2020) (SR– 

NYSEArca–2019–81) (Notice of filing of 

Amendment No. 2 and Order granting accelerated 

approval of proposed rule change, as modified by 

Amendment No. 2, to adopt NYSE Arca Rule 5.2– 

E(j)(8) establishing generic listing standards for 

Exchange-Traded Fund Shares). 

11Rule 6c–11(a)(1) defines ‘‘exchange-traded 

fund’’ as a registered open-end management 

company: (i) That issues (and redeems) creation 

units to (and from) authorized participants in 

exchange for a basket and a cash balancing amount 

if any; and (ii) Whose shares are listed on a national 

securities exchange and traded at marketdetermined prices. The terms ‘‘authorized 

participant,’’ ‘‘basket’’ and ‘‘creation unit’’ are 

defined in Rule 6c–11(a). 

12The definition of Exchange-Traded Fund 

Shares is the same as the definition of ‘‘exchangetraded fund shares’’ in Rule 6c–11(a) under the 

1940 Act. 

DMM would have obligations vis-a`-vis 

such securities as specified in Rule 104, 

including facilitating the opening, 

reopening, and closing of such 

securities.7

The Commission recently adopted 

Rule 6c–11 under the 1940 Act to 

permit ETPs that are exchange traded 

funds (‘‘ETF’’) shares (‘‘ExchangeTraded Fund Shares’’) and that satisfy 

certain conditions to operate without 

obtaining an exemptive order from the 

Commission under the 1940 Act.8 The 

regulatory framework provided in Rule 

6c–11 streamlines procedures and 

reduces the costs and time frames 

associated with bringing ETFs to 

market, thereby enhancing competition 

among ETF issuers and reducing costs 

for investors.9

The Exchange proposes new Rule 

5.2(j)(8) to establish generic listing 

standards allowing the Exchange to list 

and trade Exchange-Traded Fund Shares 

in a manner consistent with Rule 6c–11. 

Proposed Rule 5.2(j)(8) is based on 

NYSE Arca, Inc. (‘‘NYSE Arca’’) Rule 

5.2–E(j)(8).10 In addition, the Exchange 

proposes a new Rule 7.18(d)(2) based on 

NYSE Arca Rule 7.18–E(d)(2) that 

would govern trading halts for listed 

ETPs. 

Proposed Rule Change 

The Exchange proposes standards that 

would pertain to Exchange-Traded Fund 

Shares to qualify for listing and trading 

pursuant to Rule 19b–4(e), as follows. 

Proposed Rule 5.2(j)(8)(a) would 

provide that the Exchange would 

consider for trading, whether by listing 

or on a UTP basis, Exchange-Traded 

Fund Shares that meet the criteria of 

proposed Rule 5.2(j)(8). Proposed Rule 

5.2(j)(8)(a) is based on NYSE Arca Rule 

5.2–E(j)(8)(a) without any differences. 

Proposed Rule 5.2(j)(8)(b) would 

specify applicability of proposed Rule 

5.2(j)(8) and would provide that it is 

applicable only to Exchange-Traded 

Fund Shares. Proposed Rule 5.2(j)(8)(b) 

would further provide that, except to 

the extent inconsistent with proposed 

Rule 5.2(j)(8) or unless the context 

otherwise requires, Exchange rules 

would be applicable to the trading on 

the Exchange of such securities and that 

Exchange-Traded Fund Shares would be 

included within the definition of NMS 

Stock as defined in Rule 1.1. Proposed 

Rule 5.2(j)(8)(b) is based on NYSE Arca 

Rule 5.2–E(j)(8)(b) without any 

differences. 

Proposed Rule 5.2(j)(8)(c) would set 

forth the proposed rule’s applicable 

definitions, which are based on NYSE 

Arca Rule 5.2–E(j)(8)(c) without any 

differences, as follows: 

• Proposed Rule 5.2(j)(8)(c)(1) would 

define the term ‘‘1940 Act’’ to mean the 

Investment Company Act of 1940, as 

amended. 

• Proposed Rule 5.2(j)(8)(c)(2) would 

define the term ‘‘Exchange-Traded 

Fund’’ as having the same meaning as 

the term ‘‘exchange-traded fund’’ as 

defined in Rule 6c–11(a)(1) under the 

1940 Act.11

• Proposed Rule 5.2(j)(8)(c)(3) would 

define the term ‘‘Exchange-Traded Fund 

Share’’ to mean a share of stock issued 

by an Exchange-Traded Fund.12

• Proposed Rule 5.2(j)(8)(c)(4) would 

define the term ‘‘Reporting Authority’’ 

to mean with respect to a particular 

series of Exchange-Traded Fund Shares, 

the Exchange, an institution, or a 

reporting service designated by the 

Exchange or by the exchange that lists 

a particular series of Exchange-Traded 

Fund Shares (if the Exchange is trading 

such series pursuant to unlisted trading 

privileges) as the official source for 

calculating and reporting information 

relating to such series, including, but 

not limited to, any current index or 

portfolio value, the current value of the 

portfolio of any securities required to be 

deposited in connection with issuance 

of Exchange-Traded Fund Shares, the 

amount of any dividend equivalent 

payment or cash distribution to holders 

of Exchange-Traded Fund Shares, net 

asset value, or other information relating 

to the issuance, redemption or trading of 

Exchange-Traded Fund Shares. A series 

of Exchange-Traded Fund Shares may 

have more than one Reporting 

Authority, each having different 

functions. 

Proposed Rule 5.2(j)(8)(d) would 

specify the limitations on Exchange 

liability and relates to limitations of the 

Exchange, the Reporting Authority, or 

any agent of the Exchange as a result of 

specified events and conditions. 

Specifying such limitations of liability 

is standard in the Exchange’s rules 

governing the listing of ExchangeTraded Products and the proposed rule 

text is substantively identical to Rules 

5.2(j)(3)(D), 8.100(f), 8.201(f), 8.200(f), 

8.202(f), 8.203(f), 8.204(g), 8.300(f), 

8.400(f), 8.500(e), 8.600(e), and 8.700(g). 

Proposed Rule 5.2(j)(8)(d) is based on 

NYSE Arca Rule 5.2–E(j)(8)(d) without 

any differences. 

Proposed Rule 5.2(j)(8)(e) would 

provide that the Exchange may approve 

Exchange-Traded Fund Shares for 

listing and/or trading (including on a 

UTP basis) pursuant to Rule 19b–4(e) 

under the Exchange Act provided that 

each series of Exchange-Traded Fund 

Shares must be eligible to operate in 

reliance on Rule 6c–11 under the 1940 

Act and must satisfy the requirements of 

proposed Rule 5.2(j)(8)(as described 

below) upon initial listing and, except 

for subparagraph (1)(A) of proposed 

Rule 5.2(j)(8)(e), on a continuing basis. 

As further proposed, an issuer of such 

securities must notify the Exchange of 

any failure to comply with such 

requirements. Proposed Rule 5.2(j)(8)(e) 

is based on NYSE Arca Rule 5.2– 

E(j)(8)(e) without any differences. 

Proposed Rule 5.2(j)(8)(e)(1) sets forth 

the initial and continued listing 

standards for Exchange-Traded Fund 

Shares to be listed on the NYSE and 

would provide that Exchange-Traded 

Fund Shares will be listed and traded 

on the Exchange subject to the 

requirement that the investment 

company issuing a series of ExchangeTraded Fund Shares is eligible to 

operate in reliance on the requirements 

of Rule 6c–11(c) on an initial and 

continued listing basis. Proposed Rule 

5.2(j)(8)(e)(1) is based on NYSE Arca 

86586 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

13There are currently no securities listed on the 

Exchange that would be eligible for approval under 

proposed Commentary .01 to Rule 5.2(j)(8). 

14See proposed Commentary .02(a) to Rule 

5.2(j)(8)). Proposed Commentary .02(a) is based on 

Commentary .01(b)(1) to Rule 5.2(j)(3) and 

Commentary .02(b)(1) and (b)(3) to Rule 5.2(j)(3). 

15See proposed Commentary .02(b) to Rule 

5.2(j)(8)). Proposed Commentary .02(b) is based in 

part on Commentary .06 to Rule 8.600. 

Rule 5.2–E(j)(8)(e)(1) without any 

differences. 

Proposed Rule 5.2(j)(8)(e)(1)(A) 

provides that, for each series of 

Exchange-Traded Fund Shares, the 

Exchange will establish a minimum 

number of Exchange-Traded Fund 

Shares required to be outstanding at the 

time of commencement of trading on the 

Exchange. Proposed Rule 

5.2(j)(8)(e)(1)(A) is based on NYSE Arca 

Rule 5.2–E(j)(8)(e)(1)(A) without any 

differences. 

Proposed Rule 5.2(j)(8)(e)(2) would set 

forth the standards for suspension of 

trading or removal of Exchange-Traded 

Fund Shares from listing on the 

Exchange and would provide that the 

Exchange will consider the suspension 

of trading in, and will commence 

delisting proceedings under Rule 5.5(m) 

of, a series of Exchange-Traded Fund 

Shares under any of the following 

circumstances: 

(A) If the Exchange becomes aware 

that the investment company is no 

longer eligible to operate in reliance on 

Rule 6c–11; 

(B) if the investment company no 

longer complies with the requirements 

set forth in Rule 5.2(j)(8); 

(C) if, following the initial twelvemonth period after commencement of 

trading on the Exchange of a series of 

Exchange-Traded Fund Shares, there are 

fewer than 50 beneficial holders of such 

series of Exchange-Traded Fund Shares; 

or 

(D) if such other event shall occur or 

condition exists which, in the opinion 

of the Exchange, makes further dealings 

on the Exchange inadvisable (see 

proposed Rule 5.2(j)(8)(e)(2)(D)). 

Proposed Rule 5.2(j)(8)(e)(2) is based 

on NYSE Arca Rule 5.2–E(j)(8)(e)(2) 

without any differences. 

Proposed Rule 5.2(j)(8)(f) would 

provide that transactions in ExchangeTraded Fund Shares would occur 

during the trading hours specified in 

Rule 7.34(a) for Exchange-listed 

securities. Proposed Rule 5.2(j)(8)(f) is 

based on NYSE Arca Rule 5.2–E(j)(8)(f) 

with a difference to cross reference the 

Exchange’s rule governing the hours of 

trading. In addition, unlike NYSE Arca, 

Exchange-listed securities trade on the 

Exchange only during Core Trading 

Hours. 

Proposed Rule 5.2(j)(8)(g) would 

provide that the Exchange would 

implement and maintain written 

surveillance procedures for ExchangeTraded Fund Shares. This proposed rule 

is based, for example, on Commentary 

.01(f) to Rule 5.2(j)(3) (for Investment 

Company Units); Commentary .03 to 

Rule 8.600 (for Managed Fund Shares); 

and Commentary .04 to Rule 8.700 (for 

Managed Trust Securities). Proposed 

Rule 5.2(j)(8)(g) is based on NYSE Arca 

Rule 5.2–E(j)(8)(g) without any 

differences. 

Proposed Rule 5.2(j)(8)(h) would 

provide that, upon termination of an 

investment company issuing ExchangeTraded Fund Shares, the Exchange 

would require that Exchange-Traded 

Fund Shares issued in connection with 

such entity be removed from Exchange 

listing. Proposed Rule 5.2(j)(8)(h) is 

based on NYSE Arca Rule 5.2–E(j)(8)(h) 

without any differences. 

Proposed Commentary .01 to Rule 

5.2(j)(8) would provide that a security 

that has previously been approved for 

listing on the Exchange pursuant to the 

generic listing requirements specified in 

Rule 5.2(j)(3) or Commentary .01 to Rule 

8.600, or pursuant to a proposed rule 

change approved or subject to a notice 

of effectiveness by the Commission, may 

be considered approved for listing 

solely under Rule 5.2(j)(8) if such 

security is eligible to operate in reliance 

on Rule 6c–11 under the 1940 Act. Once 

so approved for listing, the continued 

listing requirements applicable to such 

previously-listed security will be those 

specified in paragraph (e) of Rule 

5.2(j)(8). Any requirements for listing as 

specified in Rule 5.2(j)(3) or 

Commentary .01 to Rule 8.600, or an 

approval order or notice of effectiveness 

of a separate proposed rule change that 

differ from the requirements of Rule 

5.2(j)(8) will no longer be applicable to 

such security. Commentary .01 to 

proposed Rule 5.2(j)(8) is based on 

Commentary .01 to NYSE Arca Rule 

5.2–E(j)(8) without any differences.13

The Exchange believes that proposed 

Commentary .01 to Rule 5.2(j)(8) 

harmonizes the Exchange’s listing 

standards for all ETFs that will be listed 

on the Exchange, even if they were 

previously listed pursuant to different 

continued listing requirements. 

Specifically, as noted in the Rule 6c–11 

Release, one year following the effective 

date of Rule 6c–11, the Commission will 

be rescinding those portions of its prior 

ETF exemptive orders under the 1940 

Act that grant relief related to the 

formation and operation of certain ETFs. 

The Exchange believes that once this 

occurs, all ETFs will be subject to the 

same requirements under Rule 6c–11 

and will no longer be subject to any 

differing requirements that may have 

been set forth in the exemptive orders 

issued before the effective date of Rule 

6c–11. 

Proposed Commentary .02 to Rule 

5.2(j)(8) is based on Commentary .02 to 

NYSE Arca Rule 5.2–E(j)(8)(a) without 

any differences, and would establish the 

following requirements that each series 

of Exchange-Traded Fund Shares based 

on an index would be required to meet 

on an initial and continued listing basis: 

(1) If the underlying index is 

maintained by a broker-dealer or fund 

adviser, the broker-dealer or fund 

adviser will erect and maintain a ‘‘fire 

wall’’ around the personnel who have 

access to information concerning 

changes and adjustments to the index 

and the index will be calculated by a 

third party who is not a broker-dealer or 

fund adviser, and 

(2) Any advisory committee, 

supervisory board, or similar entity that 

advises a Reporting Authority or that 

makes decisions on the index 

composition, methodology and related 

matters, must implement and maintain, 

or be subject to, procedures designed to 

prevent the use and dissemination of 

material non-public information 

regarding the applicable index.14

In addition, with respect to series of 

Exchange-Traded Fund Shares that are 

actively managed, if the investment 

adviser to the investment company 

issuing Exchange-Traded Fund Shares is 

affiliated with a broker-dealer, such 

investment adviser will erect and 

maintain a ‘‘fire wall’’ between the 

investment adviser and the brokerdealer with respect to access to 

information concerning the composition 

and/or changes to such portfolio. 

Personnel who make decisions on the 

portfolio composition must be subject to 

procedures designed to prevent the use 

and dissemination of material 

nonpublic information regarding the 

applicable portfolio. The Reporting 

Authority that provides information 

relating to the portfolio of a series of 

Exchange-Traded Fund Shares must 

implement and maintain, or be subject 

to, procedures designed to prevent the 

use and dissemination of material nonpublic information regarding the actual 

components of such portfolio.15

The Exchange notes that ExchangeTraded Fund Shares will be subject to 

all Exchange rules applicable to equities 

trading. With respect to ExchangeTraded Fund Shares, all obligations 

relating to product description and 

prospectus delivery requirements will 

continue to apply in accordance with 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86587 

16See NYSE Rule 7.12. 

17The Exchange notes that the surveillance 

procedures applicable to Exchange-Traded Fund 

Shares on the NYSE would be substantially similar 

to those in place for Investment Company Units, 

Exchange-Traded Fund Shares, and Managed Fund 

Shares, among other product types, on NYSE Arca. 

18As proposed, Rule 5.2(j)(8) does not impose 

index dissemination requirements, the Exchange 

does not plan to conduct a specific index 

dissemination surveillance for securities listed 

pursuant to such rule. 

Exchange rules and federal securities 

laws, and the Exchange and the 

Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) will continue 

to monitor Exchange members for 

compliance with such requirements, 

which are not changing as a result of 

Rule 6c–11 under the 1940 Act. 

Trading Halts 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in a series of 

Exchange-Traded Fund Shares.16

Trading in Exchange-Traded Fund 

Shares will be halted if the circuit 

breaker parameters in Rule 7.12 have 

been reached. Trading also may be 

halted because of market conditions or 

for reasons that, in the view of the 

Exchange, make trading in ExchangeTraded Fund Shares inadvisable. These 

may include: (1) The extent to which 

certain information about the ExchangeTraded Fund Shares that is required to 

be disclosed under Rule 6c–11(c) of the 

1940 Act is not being made available, or 

(2) whether other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. 

The Exchange proposes a new Rule 

7.18(d)(2) modeled on NYSE Arca Rule 

7.18–E(d)(2) that would govern trading 

halts for listed ETPs (which would 

include Exchange-Traded Fund Shares). 

Proposed Rule 7.18(d)(2) would provide 

that, with respect to an ETP listed on 

the Exchange for which a Net Asset 

Value (‘‘NAV’’) (and in the case of 

Managed Fund Shares under NYSE Rule 

8.600 and Managed Trust Securities 

under NYSE Rule 8.700, a Disclosed 

Portfolio) is disseminated, if the 

Exchange becomes aware that the NAV 

(or in the case of Managed Fund Shares 

or Managed Trust Securities, the 

Disclosed Portfolio) is not being 

disseminated to all market participants 

at the same time, it will halt trading in 

the affected Exchange Traded Product 

on the NYSE until such time as the NAV 

(or in the case of Managed Fund Shares 

or Managed Trust Securities, the 

Disclosed Portfolio, as applicable) is 

available to all market participants. 

In addition, the Exchange may halt 

trading in ETPs if there is an 

interruption or disruption in the 

dissemination of an underlying index 

value, if applicable, if there are major 

interruptions in securities trading in 

U.S. or global markets, or in the 

presence of other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market. 

Minimum Price Variation 

As provided in NYSE Rule 7.6, the 

minimum price variation (‘‘MPV’’) for 

quoting and entry of orders in equity 

securities traded on the NYSE is $0.01, 

with the exception of securities that are 

priced less than $1.00 for which the 

MPV for order entry is $0.0001. 

Surveillance 

The Exchange represents that its 

surveillance procedures are adequate to 

properly monitor the trading of the 

Exchange-Traded Fund Shares in all 

trading sessions and to deter and detect 

violations of Exchange rules. 

Specifically, the Exchange will 

implement and maintain written 

surveillance procedures to monitor 

trading in Exchange-Traded Fund 

Shares on the NYSE.17 The Exchange or 

FINRA, on behalf of the Exchange, will 

communicate as needed regarding 

trading in Exchange-Traded Fund 

Shares and certain of their applicable 

underlying components with other 

markets that are members of the 

Intermarket Surveillance Group (‘‘ISG’’) 

or with which the Exchange has in place 

a comprehensive surveillance sharing 

agreement. In addition, the Exchange 

may obtain information regarding 

trading in Exchange-Traded Fund 

Shares and certain of their applicable 

underlying components from markets 

and other entities that are members of 

ISG or with which the Exchange has in 

place a comprehensive surveillance 

sharing agreement. Additionally, 

FINRA, on behalf of the Exchange, is 

able to access, as needed, trade 

information for certain fixed income 

securities that may be held by a series 

of Exchange-Traded Fund Shares 

reported to FINRA’s TRACE. FINRA 

also can access data obtained from the 

Municipal Securities Rulemaking 

Board’s Electronic Municipal Market 

Access (‘‘EMMA’’) system relating to 

municipal bond trading activity for 

surveillance purposes in connection 

with trading in a series of ExchangeTraded Fund Shares, to the extent that 

a series of Exchange-Traded Fund 

Shares holds municipal securities. As 

noted below, the issuer of a series of 

Exchange-Traded Fund Shares will be 

required to comply with Rule 10A–3 

under the Act for the initial and 

continued listing of Exchange-Traded 

Fund Shares, as provided under Rule 

5.2. 

Pursuant to its obligations under 

Section 19(g)(1) of the Act, the Exchange 

will monitor for compliance with the 

continued listing requirements. As 

provided for under proposed Rule 

5.2(j)(8)(e)(2), if the investment 

company or series of Exchange-Traded 

Fund Shares is not in compliance with 

the applicable listing requirements, the 

Exchange will commence delisting 

procedures under Rule 5.5(m). 

The Exchange will implement and 

maintain written surveillance 

procedures to monitor issuer 

compliance with the requirements of 

proposed Rule 5.2(j)(8) for ExchangeTraded Funds on the NYSE. For 

example, the Exchange will use intraday 

alerts that will notify Exchange 

personnel of trading activity throughout 

the day that may indicate that certain 

disclosures are not being made 

accurately or that other unusual 

conditions or circumstances are present 

that could be detrimental to the 

maintenance of a fair and orderly 

market. The Exchange will require 

periodic certification from the issuer of 

a series of Exchange-Traded Fund 

Shares that it is in compliance with 

Rule 6c–11 and the requirements of 

Rule 5.2(j)(8). 

Proposed Rule 5.2(j)(8)(e)(2)(i) 

provides that the Exchange will 

consider the suspension of trading in, 

and will commence delisting 

proceedings under Rule 5.5(m) of, a 

series of Exchange-Traded Fund Shares 

if the Exchange becomes aware that the 

investment company is no longer 

eligible to operate in reliance on Rule 

6c–11. The Exchange’s awareness for 

purposes of determining whether to 

suspend trading or delist a series of 

Exchange-Traded Fund Shares may 

result from notification by the 

investment company or by the Exchange 

learning, through its own efforts, of noncompliance with Rule 5.2(j)(8).18 In 

addition, the Exchange will periodically 

review issuer websites to monitor 

whether disclosures are being made for 

a series of Exchange-Traded Fund 

Shares as required by Rule 6c–11(c)(1). 

The Exchange also notes that proposed 

Rule 5.2(j)(8)(e) would require an issuer 

of Exchange-Traded Fund Shares to 

notify the Exchange that it is no longer 

eligible to operate in reliance on Rule 

6c–11 or that it does not comply with 

the requirements of proposed Rule 

5.2(j)(8). The Exchange will rely on the 

86588 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

19See Rule 6c–11 Release at 57168–57169. See 

also 17 CFR 270.38a–1 (Rule 38a–1 under the 1940 

Act) (requiring funds to adopt policies and 

procedures reasonably designed to prevent 

violation of federal securities laws); 17 CFR 270.17j1(c)(1) (Rule 17j–1(c)(1) under the Investment 

Company Act) (requiring funds to adopt a code of 

ethics containing provisions designed to prevent 

certain fund personnel (‘‘access persons’’) from 

misusing information regarding fund transactions); 

section 204A of the Investment Advisers Act of 

1940 (‘‘Advisers Act’’) (15 U.S.C. 80b–204A) 

(requiring an adviser to adopt policies and 

procedures that are reasonably designed, taking into 

account the nature of its business, to prevent the 

misuse of material, non-public information by the 

adviser or any associated person, in violation of the 

Advisers Act or the Exchange Act, or the rules or 

regulations thereunder); section 15(g) of the 

Exchange Act (15 U.S.C. 78o(f)) (requiring a 

registered broker or dealer to adopt policies and 

procedures reasonably designed, taking into 

account the nature of the broker’s or dealer’s 

business, to prevent the misuse of material, 

nonpublic information by the broker or dealer or 

any person associated with the broker or dealer, in 

violation of the Exchange Act or the rules or 

regulations thereunder). 

20See note 10, supra. 

21 15 U.S.C. 78f(b). 

22 15 U.S.C. 78f(b)(5). 

23Rule 6c–11(c) sets forth certain conditions 

applicable to exchange-traded funds, including 

information required to be disclosed on the fund’s 

website. 

foregoing procedures to become aware 

of any non-compliance with the 

requirements of Rule 5.2(j)(8). Proposed 

Rule 5.2(j)(8)(e)(2)(i) is based on NYSE 

Arca Rule 5.2–E(j)(8)(e)(2)(i) without 

any differences. 

Firewalls 

Commentary .01(b)(1) and 

Commentary .02(b) to NYSE Rule 

5.2(j)(3) (applicable to Investment 

Company Units) and Commentary .06 to 

NYSE Rule 8.600 (applicable to 

Managed Fund Shares) require the 

establishment and maintenance of a 

‘‘firewall’’ around personnel who have 

access to information concerning 

changes to an index or the composition 

and/or changes to a fund’s portfolio; and 

that specified persons or entities be 

subject to procedures designed to 

prevent the use and dissemination of 

material non-public information 

regarding the applicable index or 

portfolio. 

In the Rule 6c–11 Release, the 

Commission, in the context of indexbased ETFs with affiliated index 

providers (‘‘self-indexed ETFs’’), noted 

the federal securities law provisions that 

currently relate to implementation by 

funds of appropriate measures to deal 

with misuse of non-public 

information.19 The Exchange notes that 

these federal securities law 

requirements will continue to apply to 

issues of index and actively-managed 

ETFs and the proposed generic listing 

rules for Exchange-Traded Fund Shares 

are consistent with such requirements. 

The Exchange notes that proposed 

Commentary .02(a) to Rule 5.2(j)(8) 

provides that, with respect to series of 

Exchange-Traded Fund Shares that are 

based on an index, if the underlying 

index is maintained by a broker-dealer 

or fund adviser, the broker-dealer or 

fund adviser will erect and maintain a 

‘‘fire wall’’ around the personnel who 

have access to information concerning 

changes and adjustments to the index 

and the index shall be calculated by a 

third party who is not a broker-dealer or 

fund advisor. In addition, proposed 

Commentary .02(b) to Rule 5.2(j)(8) 

provides that, with respect to series of 

Exchange-Traded Fund Shares that are 

actively managed if, the investment 

adviser to the Exchange-Traded Fund 

issuing Exchange-Traded Fund Shares is 

affiliated with a broker-dealer, such 

investment adviser will erect and 

maintain a ‘‘fire wall’’ between the 

investment adviser and the brokerdealer with respect to access to 

information concerning the composition 

and/or changes to such ExchangeTraded Fund portfolio. Personnel who 

make decisions on the applicable 

Exchange-Traded Fund’s portfolio 

composition must be subject to 

procedures designed to prevent the use 

and dissemination of material 

nonpublic information regarding the 

applicable Exchange-Traded Fund 

portfolio. Proposed Commentary .02(a) 

to Rule 5.2(j)(8)(k) is based on 

Commentary .02(a) to NYSE Arca Rule 

5.2–E(j)(8) without any differences. 

As noted, proposed Rule is based on 

recently adopted NYSE Arca Rule 5.2– 

E(j)(8).20 The Exchange believes that 

adopting the same generic standards for 

Exchange-Traded Fund Shares would 

facilitate efficient procedures for ETFs 

that are permitted to operate in reliance 

on Rule 6c–11. The Exchange further 

believes that the proposed rule is, like 

its NYSE Arca counterpart, fully 

consistent with, and will further, the 

Commission’s goals in adopting Rule 

6c–11. 

For all of the reasons stated above, the 

proposal is therefore consistent with the 

requirements of the Act. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act,21 in general, and furthers the 

objectives of Sections 6(b)(5) of the 

Act,22 in particular, because it is 

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 

mechanisms of, a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest and because it is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

By facilitating efficient procedures for 

listing Exchange-Traded Fund Shares 

that are permitted to operate in reliance 

on Rule 6c–11, the generic listing rules 

in proposed Rule 5.2(j)(8) described 

above based on NYSE Arca Rule 5.2– 

E(j)(8) recently approved by the 

Commission are consistent with, and 

will further, the Commission’s goals in 

adopting Rule 6c–11. In addition, by 

allowing Exchange-Traded Fund Shares 

to be listed and traded on the Exchange 

without a prior Commission approval 

order or notice of effectiveness pursuant 

to Section 19(b) of the Act, proposed 

Rule 5.2(j)(8) will significantly reduce 

the time frame and costs associated with 

bringing these securities to market, 

thereby promoting market competition 

among issuers of Exchange-Traded Fund 

Shares, to the benefit of the investing 

public. In addition, the proposed rule 

change would fulfill the intended 

objective of Rule 19b–4(e) under the Act 

by permitting Exchange-Traded Fund 

Shares that satisfy the proposed listing 

standards to be listed and traded 

without separate Commission approval. 

Proposed Rule 5.2(j)(8)(d) would 

specify the limitations on Exchange 

liability and relates to limitation of the 

Exchange, the Reporting Authority, or 

any agent of the Exchange as a result of 

specified events and conditions. As 

provided in proposed Rule 5.2(j)(8)(e), 

the Exchange may approve ExchangeTraded Fund Shares for listing and 

trading on the Exchange subject to the 

requirement that the investment 

company issuing a series of ExchangeTraded Fund Shares is eligible to 

operate in reliance on Rule 6c–11 23

under the 1940 Act and must satisfy the 

requirements of Rule 5.2(j)(8) on an 

initial listing and, except for 

subparagraph (1)(A) of Rule 5.2(j)(8)(e), 

a continuing basis. An issuer of such 

securities must notify the Exchange of 

any failure to comply with such 

requirements. These requirements will 

ensure that Exchange-listed ExchangeTraded Fund Shares continue to operate 

in a manner that fully complies with the 

portfolio transparency requirements of 

Rule 6c–11(c). As provided in proposed 

Rule 5.2(j)(8)(e)(1), Exchange-Traded 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86589 

24See NYSE Rule 7.12. 

Fund Shares will be listed and traded 

on the Exchange subject to the 

requirement that the investment 

company issuing a series of ExchangeTraded Fund Shares is eligible to 

operate in reliance on the requirements 

of Rule 6c–11(c) under the 1940 Act on 

an initial and continued listing basis. As 

provided in proposed Rule 5.2(j)(8)(e)(2) 

(Suspension of trading or removal), the 

Exchange will consider the suspension 

of trading in, and will commence 

delisting proceedings under Rule 5.5(m) 

of, a series of Exchange-Traded Fund 

Shares if the Exchange becomes aware 

that it is no longer eligible to operate in 

reliance on Rule 6c–11 or does not 

comply with the requirements set forth 

in Rule 5.2(j)(8); if, following the initial 

twelve-month period after 

commencement of trading on the 

Exchange of a series of Exchange-Traded 

Fund Shares, there are fewer than 50 

beneficial holders of such series of 

Exchange-Traded Fund Shares; or if 

such other event shall occur or 

condition exists which, in the opinion 

of the Exchange, makes further dealings 

on the Exchange inadvisable. 

As provided in proposed Rule 

5.2(j)(8)(g), the Exchange will 

implement and maintain written 

surveillance procedures for ExchangeTraded Fund Shares on the NYSE. The 

Exchange represents that its 

surveillance procedures are adequate to 

properly monitor the trading of the 

Exchange-Traded Fund Shares in all 

trading sessions and to deter and detect 

violations of Exchange rules. Proposed 

Rule 5.2(j)(8)(h) provides that, upon 

termination of an investment company 

issuing Exchange-Traded Fund Shares, 

the Exchange requires that ExchangeTraded Fund Shares issued in 

connection with such entity be removed 

from Exchange listing. 

Proposed Commentary .01 to Rule 

5.2(j)(8) provides that a security that has 

previously been approved for listing on 

the Exchange pursuant to the generic 

listing requirements specified in Rule 

5.2(j)(3) or Commentary .01 to Rule 

8.600, or pursuant to a proposed rule 

change approved or subject to a notice 

of effectiveness by the Commission, may 

be considered approved for listing 

solely under Rule 5.2(j)(8) if such 

security is eligible to operate in reliance 

on Rule 6c–11 under the 1940 Act. Once 

so approved for listing, the continued 

listing requirements applicable to such 

previously-listed security will be those 

specified in paragraph (e) of Rule 

5.2(j)(8). Any requirements for listing as 

specified in Rule 5.2(j)(3) or 

Commentary .01 to Rule 8.600, or an 

approval order or notice of effectiveness 

of a separate proposed rule change that 

differ from the requirements of Rule 

5.2(j)(8) will no longer be applicable to 

such security. The Exchange believes 

proposed Commentary .01 to Rule 

5.2(j)(8) will streamline the listing 

process for such securities, consistent 

with the regulatory framework adopted 

in Rule 6c–11 under the 1940 Act. 

Proposed Commentary .02 to Rule 

5.2(j)(8) would provide requirements to 

be met on an initial and continued 

listing basis by series of ExchangeTraded Fund Shares that are based on 

an index or are actively managed 

regarding the erection and maintenance 

of a ‘‘fire wall’’ as well as 

implementation and maintenance of 

procedures designed to prevent the use 

and dissemination of material nonpublic information regarding the 

applicable index or portfolio. The 

Exchange believes the provisions of the 

proposed rule will address possible 

concerns regarding misuse of material 

non-public information regarding an 

index underlying a series of ExchangeTraded Fund Shares or the portfolio for 

a series of Exchange-Traded Fund 

Shares, as applicable. 

The Exchange believes that the 

proposed rule change is designed to 

prevent fraudulent and manipulative 

acts and practices and is consistent with 

the protection of investors and the 

public interest because the Exchange 

will have in place surveillance 

procedures that are adequate to properly 

monitor trading in the Exchange-Traded 

Fund Shares in all trading sessions and 

to deter and detect violations of 

Exchange rules and applicable federal 

securities laws. FINRA, on behalf of the 

Exchange, will communicate as needed 

regarding trading in Exchange-Traded 

Fund Shares and certain of their 

applicable underlying components with 

other markets that are members of ISG 

or with which the Exchange has in place 

a comprehensive surveillance sharing 

agreement. In addition, the Exchange 

may obtain information regarding 

trading in Exchange-Traded Fund 

Shares and certain of their applicable 

underlying components from markets 

and other entities that are members of 

ISG or with which the Exchange has in 

place a comprehensive surveillance 

sharing agreement. Additionally, 

FINRA, on behalf of the Exchange, is 

able to access, as needed, trade 

information for certain fixed income 

securities that may be held by a series 

of Exchange-Traded Fund Shares 

reported to FINRA’s TRACE. FINRA 

also can access data obtained from the 

Municipal Securities Rulemaking 

Board’s EMMA system relating to 

municipal bond trading activity for 

surveillance purposes in connection 

with trading in a series of ExchangeTraded Fund Shares, to the extent that 

a series of Exchange-Traded Fund 

Shares holds municipal securities. As 

noted above, the issuer of a series of 

Exchange-Traded Fund Shares will be 

required to comply with Rule 10A–3 

under the Act for the initial and 

continued listing of Exchange-Traded 

Fund Shares, as provided under Rule 

5.2. 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in a series of 

Exchange-Traded Fund Shares.24

Trading in Exchange-Traded Fund 

Shares will be halted if the circuit 

breaker parameters in NYSE Rule 7.12 

have been reached. Trading also may be 

halted because of market conditions or 

for reasons that, in the view of the 

Exchange, make trading in ExchangeTraded Fund Shares inadvisable. 

Proposed NYSE Rule 7.18(d)(2), which 

is based on NYSE Arca Rule 7.18– 

E(d)(2) without any differences, would 

permit the Exchange to halt trading in 

listed ETPs (which would include 

Exchange-Traded Fund Shares) for 

which an NAV (and in the case of 

Managed Fund Shares under NYSE Rule 

8.600 and Managed Trust Securities 

under NYSE Rule 8.700, a Disclosed 

Portfolio) is disseminated when the 

Exchange becomes aware that the NAV 

(or in the case of Managed Fund Shares 

or Managed Trust Securities, the 

Disclosed Portfolio) is not being 

disseminated to all market participants 

at the same time until such time as the 

NAV (or in the case of Managed Fund 

Shares or Managed Trust Securities, the 

Disclosed Portfolio, as applicable) is 

available to all market participants. 

The Exchange will obtain a 

representation from the issuer of a series 

of Exchange-Traded Fund Shares that 

the NAV per share of such series will be 

calculated daily and will be made 

available to all market participants at 

the same time. The Exchange will 

monitor for compliance with the 

continued listing requirements. If the 

Exchange-Traded Fund is not in 

compliance with the applicable listing 

requirements, the Exchange will 

commence delisting procedures under 

Rule 5.5(m). The Exchange will utilize 

existing procedures to monitor issuer 

compliance with the requirements of 

proposed Rule 5.2(j)(8). For example, 

the Exchange will continue to use 

intraday alerts that will notify Exchange 

personnel of trading activity throughout 

the day that may indicate that certain 

disclosures are not being made 

86590 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

25 15 U.S.C. 78f(b)(8). 

26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 90384 

(November 9, 2020), 85 FR 73113 (November 16, 

2020). Comments on the proposed rule change can 

be found at https://www.sec.gov/comments/sr-bx2020-032/srbx2020032.htm. 

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

accurately or that other unusual 

conditions or circumstances are present 

that could be detrimental to the 

maintenance of a fair and orderly 

market. The Exchange will require 

periodic certification from the issuer of 

a series of Exchange-Traded Fund 

Shares that it is in compliance with 

Rule 6c–11 and the requirements of 

Rule 5.2(j)(8). In addition, the Exchange, 

on a periodic basis will review issues of 

Exchange-Traded Fund Shares listed on 

the Exchange for compliance with the 

requirements of Rule 6c–11(c)(1). 

Proposed Rule 5.2(j)(8)(e) would require 

an issuer of Exchange-Traded Fund 

Shares to notify the Exchange if it is no 

longer eligible to operate in reliance on 

Rule 6c–11 or that it does not comply 

with the requirements of proposed Rule 

5.2(j)(8) (except for subparagraph (1)(A) 

of Rule 5.2(j)(8)(e)). 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,25 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Instead, the 

Exchange believes that the proposed 

rule change would facilitate the listing 

and trading of Exchange-Traded Fund 

Shares and result in an efficient process 

surrounding the listing and trading of 

Exchange-Traded Fund Shares, which 

will enhance competition among market 

participants, to the benefit of investors 

and the marketplace. The Exchange also 

believes that the proposed change will 

reduce the time frame for bringing 

Exchange-Traded Fund Shares to 

market, thereby reducing the burdens on 

issuers and other market participants 

and promoting competition. In turn, the 

Exchange believes that the proposed 

change would make the process for 

listing Exchange-Traded Fund Shares 

more competitive by applying uniform 

listing standards to Exchange-Traded 

Fund Shares. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to 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 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 

the 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– 

NYSE–2020–86 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–NYSE–2020–86. 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–NYSE–2020–86, and 

should be submitted on or before 

January 21, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28804 Filed 12–29–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90796; File No. SR–BX– 

2020–032] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Designation of a 

Longer Period for Commission Action 

on a Proposed Rule Change To Amend 

Options 4, Section 5, To Limit Short 

Term Options Series Intervals Between 

Strikes Which Are Available for 

Quoting and Trading on BX 

December 23, 2020. 

On November 6, 2020, Nasdaq BX, 

Inc. (‘‘BX’’ 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 

amend Options 4, Section 5, ‘‘Series of 

Options Contracts Open for Trading’’ to 

seek to limit Short Term Options Series 

intervals between strikes which are 

available for quoting and trading on BX. 

The proposed rule change was 

published for comment in the Federal 

Register on November 16, 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