Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86623 

30 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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 (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2020–045 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–FINRA–2020–045. 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 such 

filing also will be available for 

inspection and copying at the principal 

office of FINRA. 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–FINRA– 

2020–045 and should be submitted on 

or before January 20, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28807 Filed 12–29–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90777; File No. SR–LTSE– 

2020–23] 

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

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

11.380 To Expand the Exchange’s 

Optional Risk Controls Mechanism To 

Include a Net Notional Exposure Risk 

Check in Addition to the Gross 

Notional Exposure Risk Check 

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 

17, 2020, Long-Term Stock Exchange, 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

LTSE proposes a rule change to 

amend LTSE Rule 11.380 to offer an 

optional net notional exposure risk 

check to Members and their clearing 

firms as part of the Exchange’s Risk 

Controls mechanism. 

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 of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

LTSE Rule 11.380 to offer an optional 

net notional exposure risk check to 

Members and their clearing firms as part 

of the Exchange’s Risk Controls 

mechanism. 

Existing LTSE Rule 11.380 describes 

the Exchange’s current optional Risk 

Controls mechanism that is designed to 

assist LTSE Members and their clearing 

firms in their risk management efforts. 

LTSE does not charge a fee for use of the 

Risk Controls mechanism. As described 

in the rule, the Risk Controls 

mechanism currently can be configured 

to provide trading limits based on the 

gross notional exposure for matched 

trades for a Member or clearing firm’s 

broker correspondent across market 

participant identifiers (‘‘MPIDs’’), by 

MPID, by session or in combination, per 

clearing firm relationship or Member, as 

applicable (‘‘Gross Notional Exposure’’). 

Once the Gross Notional Exposure, as 

elected and configured by a Member or 

its clearing firm, has exceeded the predetermined limit, LTSE will 

automatically reject new orders and 

cancel all open orders for the applicable 

86624 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

4The proposed rule change is substantively 

identical to the corresponding provisions in 

Investors Exchange (‘‘IEX’’) Rule 11.380 with 

certain exceptions. The Exchange’s existing Rule 

11.380 uses the term ‘‘session’’ but the proposed 

rule change would use the term ‘‘FIX session’’ to 

clarify its meaning. See IEX Rule 11.380. The 

Exchange also is not adopting the provisions in 

paragraph (a)(3) of IEX Rule 11.380, which pertain 

to the application of the Risk Controls in the 

context of an opening or closing auction. Because 

the Exchange does not have an opening or closing 

auction, these provisions are inapposite. If the 

Exchange introduces an opening or closing auction, 

it will address the implications for its Risk Controls 

at that time. 

5See, e.g., IEX Rule 11.380; Nasdaq Stock Market 

(‘‘Nasdaq’’) Rule 6130; Cboe BZX Exchange, Inc. 

(‘‘Cboe’’) Rule 11.13 Interpretations and Policies 

.01(h). The proposed rule change is substantively 

identical to the corresponding provisions in IEX 

Rule 11.380 with the exception of references to 

‘‘routed’’ trades because LTSE does not have a 

routing broker. 

6 In the case of a Member that is subject to Risk 

Controls Limits set by its clearing firm, the Member 

will be advised of such limits by LTSE. In the event 

a Member that is subject to Risk Controls Limits set 

by its clearing firm also elects to set Risk Controls 

Limits for its own trading, the Exchange will apply 

both such limits with the lower of the Risk Controls 

Limits being applicable since it will trigger first. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(5). 

9See supra note 5. 

MPID(s) and/or FIX session 4 as 

specified. Further, the Gross Notional 

Exposure risk control may be increased 

or decreased on an intra-day basis by a 

Member or the clearing firm of a 

Member, as applicable. As specified in 

paragraph (a)(2)(A) of Rule 11.380, 

Gross Notional Exposure is calculated as 

the absolute sum of the notional value 

of all buy and sell trades (i.e., equal to 

the value of executed buys plus the 

absolute value of executed long sells 

plus the absolute value of executed 

short sells). There is no netting of buys 

and sales in the same symbol or across 

symbols. The Gross Notional Exposure 

resets for each new trading day. 

LTSE proposes to revise Rule 11.380 

to provide Members or the clearing 

firms of Members with an additional 

option of configuring a Risk Controls 

trading limit on the net notional 

exposure for matched trades for a 

Member or clearing firm’s broker 

correspondent across MPIDs, by MPID, 

by FIX session or in combination, per 

clearing firm relationship or Member as 

applicable (‘‘Net Notional Exposure’’). 

LTSE notes that other exchanges offer 

their members the option of a risk 

control based upon the member’s net 

notional exposure.5 As proposed, once 

the Net Notional Exposure, as elected 

and configured by a Member or its 

clearing firm, has exceeded the 

predetermined limit, LTSE will 

automatically reject new orders and 

cancel all open orders for the applicable 

MPID(s) and/or FIX session specified. 

However, just as with the existing Gross 

Notional Exposure risk control, the 

proposed new Net Notional Exposure 

risk control may be increased or 

decreased on an intra-day basis by a 

Member or the clearing firm of a 

Member, as applicable. As specified in 

the proposed new paragraph (a)(2)(B) of 

Rule 11.380, Net Notional Exposure will 

be calculated as the absolute net sum of 

the notional value of all buy and sell 

trades (i.e., equal to the value of 

executed buys minus the absolute value 

of executed long sells minus the 

absolute value of executed short sells). 

Netting will be calculated across all 

symbols. As with Gross Notional 

Exposure risk controls, the proposed 

Net Notional Exposure risk control 

would reset for each new trading day. 

Under the proposed rule change, 

Members or their clearing firms, if they 

choose to avail themselves of LTSE’s 

Risk Controls mechanism, may elect to 

configure the Risk Controls mechanism 

to accumulate and specify a limit or 

limits on either the Gross Notional 

Exposure, the newly-offered Net 

Notional Exposure, or both (collectively 

defined in the proposed new rule as the 

‘‘Risk Controls Limit’’).6 LTSE believes 

that adding a Net Notional Exposure 

risk control to its existing Risk Controls 

mechanism will enhance the risk 

management tools available to LTSE 

Members. The Exchange notes, 

however, that use of a Risk Controls 

Limit by a Member or the clearing firm 

of a Member does not automatically 

constitute compliance with LTSE rules 

or SEC rules, nor does it replace 

Member-managed and clearing firmmanaged risk management solutions. 

The Exchange does not propose to 

require Members or their clearing firms 

to use the Risk Controls mechanism, 

and Members and their clearing firms 

may use any other appropriate riskmanagement tool or service instead of, 

or in combination with, LTSE’s Risk 

Controls mechanism. The Exchange will 

not provide preferential treatment to 

Members or clearing firms using LTSE’s 

Risk Controls mechanism, nor will the 

use of the Risk Controls mechanism 

impact a Member or clearing firm’s use 

of LTSE other than when it results in 

orders being rejected or cancelled 

pursuant to the Risk Controls Limits. In 

addition, LTSE will continue to provide 

the Risk Controls mechanism to 

Members and clearing firms without 

charge. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,7

in general, and furthers the objectives of 

Section 6(b)(5) of the Act,8 in particular, 

in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in 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. 

Specifically, the Exchange believes 

that the proposed rule change is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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 by 

enhancing the risk management 

protections available to Exchange 

Members and their clearing firms. The 

Exchange believes that the proposed 

rule change supports these objectives 

because it is designed to enable all LTSE 

Members an additional option for how 

to manage and limit their own trading 

exposure (whether on the basis of the 

Member’s Gross Notional Exposure, Net 

Notional Exposure, or both) on the 

Exchange, in addition to providing 

clearing firms an additional option to 

monitor their correspondent Members’ 

trading exposure as well as their own 

trading exposure (whether on the basis 

of the clearing firm’s Gross Notional 

Exposure, Net Notional Exposure, or 

both), including by intra-day increases 

or decreases in the limits. 

Further, the Exchange believes that 

the proposed rule change is consistent 

with the protection of investors and the 

public interest because it provides an 

additional mechanism to enable LTSE 

Members and clearing firms of LTSE 

Members to manage their risk by 

preventing trading that exceeds a 

Member or a Member’s clearing firm’s 

financial resources on a net notional 

basis (as well as the currently available 

gross notional basis risk control), and, 

thereby, contributes to the stability of 

the equities markets. Thus, the 

Exchange believes the addition of a Net 

Notional Exposure risk control offers 

Members and their clearing firms an 

important compliance tool that 

Members and their clearing firms may 

use to help maintain the regulatory 

integrity of the markets. The Exchange 

notes that other exchanges’ rules 

provide for similar functionality,9 and, 

accordingly, LTSE does not believe that 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86625 

10 Id. 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(6). 

13 15 U.S.C. 78s(b)(3)(A)(iii). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has fulfilled this requirement. 

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

16 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

the proposed rule change raises any new 

or novel issues not already considered 

by the Commission. 

In addition, the Exchange believes 

that the proposal is consistent with just 

and equitable principles of trade and 

not unfairly discriminatory because the 

Risk Controls mechanism is available to 

all Members and their clearing firms 

without charge. 

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 proposal 

is designed to expand the Exchange’s 

existing, optional Risk Controls 

mechanism by adding a new Net 

Notional Exposure risk control. The 

Exchange is not proposing to charge any 

fee for use of any aspect of its Risk 

Controls mechanism. The Exchange 

does not believe the proposed rule 

change will impose any burden on 

intermarket competition because other 

exchanges offer similar functionality.10

The Exchange also does not believe that 

the proposal will impose a burden on 

intramarket competition because its 

Risk Controls mechanism is available to 

all Members, and clearing firms of 

Members, and provides a way for LTSE 

Members and clearing firms to manage 

their risk by preventing trading that is 

erroneous or exceeds a Member or 

clearing firm’s financial resources, 

thereby contributing to the stability of 

the equities markets. Accordingly, the 

Exchange does not believe that this 

proposal will have any impact on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and Rule 

19b–4(f)(6) thereunder.12 Because the 

proposed rule change does not (i) 

significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; or (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 13 and Rule 

19b–4(f)(6)(iii) thereunder.14

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 15 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

LTSE–2020–23 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–LTSE–2020–23. 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–LTSE–2020–23 and should 

be submitted on or before January 20, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28806 Filed 12–29–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90776; File No. SR–NYSE– 

2020–105] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change 

Revising Rules 46 and 46A To Permit 

the Appointment of Trading Officials 

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 

15, 2020, New York Stock Exchange 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit