Federal Register / Vol. 86, No. 16 / Wednesday, January 27, 2021 / Notices 7327 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3As defined in Rule 11.8(e)(1)(A), the term ‘‘ETP’’ 

means any security listed pursuant to Exchange 

Rule 14.11. 4The Exchange notes that the Cap Levels, Buffer 

Levels, and the duration of each Outcome Period 

will vary across Outcome Strategy Series, but that 

the concepts of providing exposure to a particular 

reference instrument with an upside cap and 

limited downside over a particular period of time 

generally define Outcome Strategy ETPs. 

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 No. 

SR–CboeEDGA–2021–004. 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 No. 

SR–CboeEDGA–2021–004, and should 

be submitted on or before February 17, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–01731 Filed 1–26–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90957; File No. SR– 

CboeBZX–2021–012] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Expand the 

Annual Listing Fee Cap for Outcome 

Strategy ETPs To Include Series 

Having Returns Based on Two or More 

Reference Indexes 

January 21, 2021. 

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 January 

13, 2021, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) 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 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 the Substance 

of the Proposed Rule Change 

Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to amend the fees applicable to 

securities listed on the Exchange, which 

are set forth in BZX Rule 14.13. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

equities/regulation/rule_filings/bzx/), at 

the Exchange’s Office of the Secretary, 

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 

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 Exchange is proposing to amend 

Rule 14.13(b)(2)(C) related to the listing 

of exchange-traded products (‘‘ETPs’’) 3

on the Exchange. Specifically, the 

Exchange is proposing to modify the fee 

definition of Outcome Strategy ETPs 

provided under Rule 14.13(b)(2)(C)(iii) 

(the ‘‘Rule’’) to include ETPs that 

provide returns based on the 

performance of more than one 

underlying instruments. 

By way of background, Outcome 

Strategy ETPs are ETPs that are 

designed to provide a particular set of 

returns over a specified outcome period 

based on the performance of an 

underlying instrument during the ETP’s 

outcome period. As an example, an 

Outcome Strategy ETP would include 

an ETP that employs the following 

strategy (the ‘‘Buffer Strategy’’): The ETP 

seeks to provide investment returns that 

match the gains of a particular index 

(the ‘‘Reference Index’’) up to a 

maximized annual return (the ‘‘Cap 

Level’’) while guarding against certain 

declines in that same underlying index 

(the ‘‘Buffer Level’’) over a particular 

period of time (the ‘‘Outcome Period’’). 

If over the course of the Outcome 

Period, the Reference Index increases in 

value, the ETP would appreciate by 

approximately the same amount, up to 

the Cap Level. If over the course of the 

Outcome Period, the Reference Index 

decreases in value by an amount equal 

to or less than the Buffer Level, then the 

ETP would provide an approximate 

total return of zero. If over the course of 

the Outcome Period, the Reference 

Index decreases in value by an amount 

greater than the Buffer Level, then the 

ETP would decrease in value by 

approximately the same percentage as 

the Reference Index, minus the Buffer 

Level. Such outcomes would only apply 

for the specified Outcome Period and 

the ETP would reset at the end of that 

Outcome Period in order to employ the 

same Buffer Strategy for the following 

Outcome Period.4

As such, the Outcome Period 

applicable to each ETP is particularly 

important and investors need to have 


khammond on DSKJM1Z7X2PROD with NOTICES
7328 Federal Register / Vol. 86, No. 16 / Wednesday, January 27, 2021 / Notices 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f). 

more granular Outcome Periods in order 

to ensure that they are able to achieve 

the full Cap Level upside and Buffer 

Level downside protection. Issuers of 

Outcome Strategy ETPs generally issue 

the products in at least quarterly 

versions of each strategy. The issuer 

may also elect to list ETPs employing 

the Buffer Strategy in order to provide 

monthly Outcome Periods, meaning that 

there would be twelve separate ETPs 

listed on the Exchange that each employ 

the same Buffer Strategy, but have 

different Outcome Periods. Again, this 

provides investors with more precision 

when deciding which Outcome Strategy 

ETP to purchase among the series of 

Outcome Strategy ETPs (the ‘‘Outcome 

Strategy Series’’). 

With this in mind, the Exchange 

adopted the Rule which capped the 

maximum listing fee per year for an 

Outcome Strategy Series at $16,000. 

Specifically, the Rule provides that 

where an issuer lists multiple ETPs that 

are each designed to provide (i) a predefined set of returns; (ii) over a 

specified outcome period; (iii) based on 

the performance of the same underlying 

instrument; and (iv) each employ the 

same outcome strategy for achieving the 

predefined set of returns, the maximum 

annual listing fee applicable to such 

Outcome Strategy Series will be $16,000 

per year. 

Now, the Exchange proposes to 

expand criteria (iii) of the Rule to 

include ETPs that are based on the 

performance of two or more underlying 

instruments. Such an amendment 

would expand the annual listing fee cap 

to include an Outcome Strategy Series 

that may, for example, include Outcome 

Strategy ETPs with returns based on the 

performance of two or more Reference 

Indexes. The Exchange intends to 

implement the proposed amendments to 

its fee schedule on January 4, 2021. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.5 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 6 in that it provides for the 

equitable allocation of reasonable dues, 

fees and other charges among issuers 

and it does not unfairly discriminate 

between customers, issuers, brokers or 

dealers. 

The Exchange believes that the 

proposed amendment to the Rule is 

reasonable, fair and equitable, and not 

an unfairly discriminatory allocation of 

fees and other charges because it would 

apply equally for all issuers and all 

Outcome Strategy Series. The Rule was 

designed to implement a cap on the 

listing fees for multiple series of 

Outcome Strategy ETPs with, among 

other things, returns based on the same 

underlying instrument. However, the 

Rule does not contemplate such a cap 

for a series of Outcome Strategy ETPs 

with returns based on the performance 

of multiple instruments. As such, the 

proposed amendment would allow a 

greater number of Outcome Strategy 

Series to benefit from the fee cap of 

$16,000. 

The Exchange notes that the proposal 

would only expand the cap on fees for 

ETPs meeting the amended definition of 

Outcome Strategy ETPs and would only 

act to leave static or reduce fees for 

ETPs listed on the Exchange. Further, as 

proposed, the Rule would decrease the 

fees associated with Outcome Strategy 

ETPs that are based on the performance 

of the same underlying instruments, 

which may reduce the barriers to entry 

into the space and incentivize enhanced 

competition among issuers of Outcome 

Strategy ETPs, to the benefit of 

investors. The Exchange notes that an 

issuer would only receive the benefit of 

the annual fee cap if they accrue greater 

than $16,000 in listing fees for a 

particular Outcome Strategy Series. 

The Exchange believes that the 

proposed cap on fees for Outcome 

Strategy Series and the associated 

changes is a reasonable means to 

incentivize issuers to list (or transfer) 

Outcome Strategy ETPs on the 

Exchange. The marketplace for listings 

is extremely competitive and there are 

several other national securities 

exchanges that offer ETP listings. 

Transfers between listing venues occur 

frequently for numerous reasons, 

including listing fees. The proposed rule 

changes reflect a competitive pricing 

structure designed to incentivize issuers 

to list new products and transfer 

existing products to the Exchange, 

which the Exchange believes will 

enhance competition both among ETP 

issuers and listing venues, to the benefit 

of investors. 

Based on the foregoing, the Exchange 

believes that the proposed rule changes 

are consistent with the Act. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed change burdens competition, 

but instead, enhances competition, as it 

is intended to apply the $16,000 fee cap 

to Outcome Strategy ETPs that are based 

on the performance of two or more 

instruments, which may lead to reduced 

fees for issuers of such products. The 

marketplace for listings is extremely 

competitive and there are several other 

national securities exchanges that offer 

ETP listings. Transfers between listing 

venues occur frequently for numerous 

reasons, including listing fees. This 

proposal is intended to help the 

Exchange compete as an ETP listing 

venue. Accordingly, the Exchange does 

not believe that the proposed change 

will impair the ability of issuers or 

competing ETP listing venues to 

maintain their competitive standing. 

The Exchange also notes that the 

proposed change represents a 

competitive pricing structure designed 

to incentivize issuers to list new 

products and transfer existing products 

to the Exchange, which the Exchange 

believes will enhance competition both 

among ETP issuers and listing venues, 

to the benefit of investors. The Exchange 

believes that such proposed changes 

will directly enhance competition 

among ETP listing venues by reducing 

the costs associated with listing on the 

Exchange for ETPs meeting the 

proposed definition of Outcome 

Strategy ETPs. As such, the proposal is 

a competitive proposal designed to 

enhance pricing competition among 

listing venues and implement pricing 

for listings that better reflects the 

revenue and expenses associated with 

listing ETPs on the Exchange. The 

Exchange does not believe the proposed 

amendments would burden intramarket 

competition as they would be available 

to all issuers uniformly. 

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 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 7 and paragraph (f) of Rule 

19b–4 8 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 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 86, No. 16 / Wednesday, January 27, 2021 / Notices 7329 

9 17 CFR 200.30–3(a)(12). 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeBZX–2021–012 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–CboeBZX–2021–012. 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 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–CboeBZX–2021–012, and 

should be submitted on or before 

February 17, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–01728 Filed 1–26–21; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #16826 and #16827; 

OKLAHOMA Disaster Number OK–00144] 

Presidential Declaration Amendment of 

a Major Disaster for Public Assistance 

Only for the State of Oklahoma 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Oklahoma (FEMA–4575– 

DR), dated 12/21/2020. 

Incident: Severe Winter Storm. 

Incident Period: 10/26/2020 through 

10/29/2020. 

DATES: Issued on 01/13/2021. 

Physical Loan Application Deadline 

Date: 02/19/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 09/21/2021. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of Oklahoma, 

dated 12/21/2020, is hereby amended to 

include the following areas as adversely 

affected by the disaster. 

Primary Counties: Alfalfa, Blaine, 

Comanche, Custer, Ellis, Garfield, 

Grant, Jackson, Kay, Lincoln, Major, 

McClain, Pawnee, Stephens, 

Tillman, Washita 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Cynthia Pitts, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2021–01724 Filed 1–26–21; 8:45 am] 

BILLING CODE 8026–03–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #16848 and #16849; 

CONNECTICUT Disaster Number CT–00052] 

Presidential Declaration of a Major 

Disaster for Public Assistance Only for 

the State of Connecticut 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Connecticut (FEMA–4580– 

DR), dated 01/12/2021. 

Incident: Tropical Storm Isaias. 

Incident Period: 08/04/2020. 

DATES: Issued on 01/12/2021. 

Physical Loan Application Deadline 

Date: 03/15/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 10/12/2021. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

01/12/2021, Private Non-Profit 

organizations that provide essential 

services of a governmental nature may 

file disaster loan applications at the 

address listed above or other locally 

announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties and Areas: Fairfield, 

Hartford, Litchfield, Middlesex, 

New Haven, New London, Tolland, 

Windham and the Mashantucket 

Pequot Indian Tribe and Mohegan 

Tribe of Indians 

The Interest Rates are: 

Percent 

For Physical Damage: 

Non-Profit Organizations with 

Credit Available Elsewhere ... 2.750 


khammond on DSKJM1Z7X2PROD with NOTICES