11022 Federal Register / Vol. 86, No. 34 / Tuesday, February 23, 2021 / Notices 

23 15 U.S.C. 78f(b). 

24 15 U.S.C. 78f(b)(1). 

25 15 U.S.C. 78f(b)(5). 26 15 U.S.C. 78s(b)(1). 

27 17 CFR 200.30–3(a)(73). 

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

2 17 CFR 240.19b–4. 

CFE believes that its proposed 

approach to amending the Appendix to 

Chapter 5 simplifies the CFE Rulebook 

by streamlining a lengthy portion of the 

Rulebook that contains twenty separate 

rules into one straightforward rule that 

reflects all of the same requirements that 

exist under the consolidated rules 

thereby making it easier for TPHs to 

reference these requirements within 

CFE’s Rulebook because they will all be 

enumerated in a single rule. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,23 in general, and 

furthers the objectives of Sections 

6(b)(1) 24 and 6(b)(5) 25 in particular, in 

that it is designed: 

• To enable the Exchange to enforce 

compliance by its TPHs and persons 

associated with its TPHs with the 

provisions of the rules of the Exchange, 

• 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. 

The proposed rule change retains 

within the CFE Rulebook rule 

provisions that address minimum 

financial requirements, financial 

reporting requirements, and protection 

of customer funds, including rules 

relating to appropriate minimum 

financial standards for intermediaries, 

the segregation of customer and 

proprietary funds, the custody of 

customer funds, the investment 

standards for customer funds, 

intermediary default procedures, and 

related recordkeeping as required by 

CFTC regulations, all in furtherance of 

TPH compliance with those rule 

provisions and their enforcement by the 

Exchange. In particular, the proposed 

rule change streamlines a lengthy 

portion of the Rulebook that contains 

twenty separate rules into one 

straightforward rule that reflects all of 

the same requirements that exist under 

the consolidated rules thereby making it 

easier for TPHs to reference those 

requirements within CFE’s Rulebook 

because they will all be enumerated in 

a single rule. The Exchange believes that 

making it easier for TPHs to reference 

those requirements will contribute to 

furthering compliance with those 

requirements by TPHs. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CFE 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, in that the 

Exchange believes that the proposed 

rule change will contribute to furthering 

compliance by TPHs with CFTC 

regulations relating to minimum 

financial requirements, financial 

reporting requirements, and protection 

of customer funds. The Exchange 

believes that the proposed rule change 

is equitable and not unfairly 

discriminatory in that it would apply 

equally to all TPHs subject to the 

relevant CFTC regulations. 

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 

The proposed rule change will 

become operative on February 11, 2021. 

At any time within 60 days of the date 

of effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

of the Act.26

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– 

CFE–2021–002 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–CFE–2021–002. 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–CFE–2021–002, and should 

be submitted on or before March 16, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–03546 Filed 2–22–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91146; File No. SR– 

PEARL–2021–03] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Exchange 

Rule 200, Trading Permits 

February 17, 2021. 

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

Securities Exchange Act of 1934 

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

Federal Register / Vol. 86, No. 34 / Tuesday, February 23, 2021 / Notices 11023 

3The term ‘‘Trading Permit’’ means a permit 

issued by the Exchange that confers the ability to 

transact on the Exchange. See Exchange Rule 100. 

4A Trading Permit Holder that does not transact 

business with the public is not required to become 

a FINRA member. Section 15(b)(8) of the Act that 

requires members that transact business with the 

public to be a member of FINRA. 15 U.S.C. 

78o(b)(8). 

5See Cboe EDGX Exchange, Inc. (‘‘EDGX’’) Rule 

2.5(a)(4), Cboe EDGA Exchange, Inc. (‘‘EDGA’’) Rule 

2.5(a)(4), Cboe BZX Exchange, Inc. (‘‘BZX’’) Rule 

2.5(a)(4), Cboe BYX Exchange, Inc. (‘‘BYX’’, 

collectively with EDGX, EDGA, and BZX, the ‘‘Cboe 

Equity Exchanges’’) Rule 2.5(a)(4), MEMX LLC 

(‘‘MEMX’’) Rule 2.5(a)(4), Investors Exchange, Inc. 

(‘‘IEX’’) Rule 2.130(a), Long Term Stock Exchange, 

Inc. (‘‘LTSE’’) Rule 2.130 and BOX Exchange LLC 

(‘‘BOX’’) Rule 2020(a). 

6The Exchange also propose to include the 

phrase ‘‘or FINRA’’ at the end of Exchange Rule 

200(d)’s title. 

7Rule 17d–1 of the Act authorizes the 

Commission to name a single Self-Regulatory 

Organization (‘‘SRO’’) as the Designated Examining 

Authority (‘‘DEA’’) to examine members of more 

than one SRO (‘‘common member’’) for compliance 

with the financial responsibility requirements 

imposed by the Exchange Act, or by Commission 

or SRO rules. 17 CFR 240.17d–1. The Exchange 

does not currently act as the DEA for any Trading 

Permit holder. 

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

9 15 U.S.C. 78f(b)(5). 10See supra note 5. 

notice is hereby given that on February 

11, 2021, MIAX PEARL, LLC (‘‘MIAX 

PEARL’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Items I and II below, 

which Items have been prepared by the 

Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposed rule 

change to Exchange Rule 200(d) 

requiring membership in another 

national securities exchange or 

association. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal 

office, 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 purpose of the proposed rule 

change is to amend Exchange Rule 

200(d) requiring membership in another 

national securities exchange or 

association. In sum, Exchange Rule 

200(d) currently requires that Trading 

Permit 3 holders be a member in another 

registered options exchange, other than 

the Exchange’s affiliates, the Miami 

International Securities Exchange, LLC 

(‘‘MIAX’’) or MIAX Emerald, LLC 

(‘‘Emerald’’), or the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

where such other registered options 

exchange has not been designated by the 

Commission, pursuant to Rule 17d–1 

under the Exchange Act, to examine 

Members for compliance with financial 

responsibility rules. Exchange Rule 

200(d), therefore, does not allow a 

Trading Permit Holder that is not a 

FINRA member 4 to satisfy this 

requirement by being a member of a 

registered equities exchange. The 

Exchange believes that requiring 

membership in another registered 

options exchange is unnecessarily too 

restrictive and is also not in line with 

similar membership requirements at 

other exchanges.5 Therefore, to enable 

more broker-dealers to become Trading 

Permit holders, the Exchange proposes 

to amend Exchange Rule 200(d) to 

require membership in a registered 

national securities exchange, rather than 

only registered options exchanges.6

Exchange Rule 200(d) will continue to 

require Trading Permit holders to be 

FINRA members where the registered 

national securities exchange that they 

maintain membership is not designated 

by the Commission to examine members 

for compliance with financial 

responsibility rules pursuant to Rule 

17d–1 of the Exchange Act.7

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,8

in general, and furthers the objectives of 

Section 6(b)(5),9 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 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

The Exchange believes that the 

proposed rule change would remove 

impediments to, and perfect the 

mechanisms of, a free and open market 

and a national market system and, in 

general, protect investors and the public 

interest by expanding the number of 

registered brokers-dealers that would be 

eligible to become Trading Permit 

holders and trade on the Exchange, 

while maintaining high regulatory 

standards and a comprehensive 

regulatory regime with respect to such 

firms. Exchange Rule 200(d) was too 

restrictive by limiting membership in 

another registered national securities 

exchange to only registered options 

exchanges and, therefore, unnecessarily 

precluded broker-dealers who were 

members of a registered equities 

exchange from becoming Trading Permit 

holders. As mentioned above, Exchange 

Rule 200(d) will continue to require 

Trading Permit holders to be FINRA 

members where the registered national 

securities exchange that they maintain 

membership is not designated by the 

Commission to examine members for 

compliance with financial responsibility 

rules pursuant to Rule 17d–1 of the 

Exchange Act. This will ensure that 

those Trading Permit holders that are 

not FINRA members maintain 

membership at a registered options or 

equities exchange that may be 

designated as their DEA by the 

Commission. The proposed rule change 

would also contribute to perfecting the 

mechanism of a free and open market 

and a national market system, which 

outcomes are also consistent with the 

protection of investors and the public 

interest, by aligning the Exchange’s 

membership requirements more closely 

with those of other national securities 

exchanges.10

The proposed rule change would also 

not unfairly discriminate between or 

among market participants because both 

current and prospective Trading Permit 

holders would be subject to the rule. All 

Trading Permit holders would be 

regulated in the same manner by the 

Exchange should they be a member of 

another registered national options or 

equities exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

11024 Federal Register / Vol. 86, No. 34 / Tuesday, February 23, 2021 / Notices 

11 Id. 

12 15 U.S.C. 78s(b)(3)(A). 

13 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 satisfied this requirement. 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 240.19b–4(f)(6)(iii). 

16See supra note 5. 

17For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

18 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. 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is designed to 

enhance competition by expanding the 

number of registered brokers-dealers 

that would be eligible to become 

Trading Permit holders and trade on the 

Exchange by aligning Exchange Rule 

200(d) with that of other national 

securities exchanges.11

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 12 and Rule 19b– 

4(f)(6) thereunder.13

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 14 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 15

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that the proposed 

rule change may become operative 

immediately. The Exchange states that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because it will allow the Exchange to 

immediately expand the number of 

registered broker-dealers that would be 

eligible to become Trading Permit 

holders on the Exchange and align its 

membership requirements more closely 

with those of other national securities 

exchanges.16 For this reason, and 

because the proposal does not raise any 

novel regulatory issues, the Commission 

believes that waiver of the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. Accordingly, the Commission 

hereby waives the operative delay and 

designates the proposed rule change 

operative upon filing.17

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall 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– 

PEARL–2021–03 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–PEARL–2021–03. 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–PEARL–2021–03 and 

should be submitted on or before March 

16, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–03543 Filed 2–22–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91143; File No. SR–NYSE– 

2021–13] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending Rule 

7.35C To Change the Auction 

Reference Price for ExchangeFacilitated Core Open Auctions 

February 17, 2021. 

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 February 

8, 2021, 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 

comments on the proposed rule change 

from interested persons.