Federal Register / Vol. 86, No. 40 / Wednesday, March 3, 2021 / Notices 12499 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Cboe Rule 3.9(e). 

6See Cboe Rule 3.9(e)(3). 

7See Cboe Rule 3.9(e)(1). 

8See Cboe Rule 3.9(e)(4). 

Government’s activities, and whether or 

not the records have historical or other 

value. Public review and comment on 

these records schedules is part of the 

Archivist’s consideration process. 

Schedules Pending 

1. Department of Homeland Security, 

Immigration and Customs Enforcement, 

Non-Evidentiary Video Audio Records 

(DAA–0567–2021–0001). 

Laurence Brewer, 

Chief Records Officer for the U.S. 

Government. 

[FR Doc. 2021–04311 Filed 3–2–21; 8:45 am] 

BILLING CODE 7515–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91211; File No. SR–CBOE– 

2021–011] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend an Exchange 

Rule Relating to Inactive Nominees 

February 25, 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 February 

19, 2021, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) 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 Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to amend 

an Exchange Rule relating to Inactive 

Nominees. The text of the proposed rule 

change is provided below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe Exchange, Inc. 

* * * * * 

Rule 3.9. Responsible Persons and Nominees 

* * * * * 

(e) A TPH organization may designate one 

or more inactive nominees. An ‘‘inactive 

nominee’’ of a TPH organization is an 

individual who is eligible to become an 

effective nominee of that organization with 

respect to any Floor Broker Trading Permit or 

Market-Maker Floor Trading Permit which 

the organization holds. The following 

requirements shall apply to inactive 

nominees: 

(1) To become an inactive nominee of a 

TPH organization, an individual must be 

approved to be a Trading Permit Holder and 

become an effective nominee of the TPH 

organization, with authorized trading 

functions, within 90 days of the approval to 

be a Trading Permit Holder; 

(2) an individual may be an inactive 

nominee of only one TPH organization; and 

(3) an inactive nominee shall have no 

rights or privileges of a Trading Permit 

Holder and shall have no right of access to 

the trading floor of the Exchange to trade as 

a Trading Permit Holder, unless and until the 

inactive nominee becomes an effective 

Trading Permit Holder pursuant to Rule 

3.11.[; and 

(4) if at any time an individual remains an 

inactive nominee for 9 consecutive months, 

the individual’s eligibility to be a Trading 

Permit Holder will be terminated and the 

individual must reapply to be a Trading 

Permit Holder in order to again become 

eligible for inactive nominee status.] 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), 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 proposes to amend a 

certain requirement related to inactive 

nominees. Specifically, the Exchange 

proposes to amend Cboe Options Rule 

3.9 (Responsible Persons and Nominees) 

with respect to inactive nominee status. 

By way of background, an inactive 

nominee is an individual who is eligible 

to become an effective nominee of that 

organization with respect to any Floor 

Broker Trading Permit or Market-Maker 

Floor Trading Permit which the 

organization holds.5 An inactive 

nominee shall have no rights or 

privileges of a TPH and shall have no 

right of access to the trading floor of the 

Exchange to trade as a TPH, unless and 

until the inactive nominee becomes an 

effective TPH.6 To become an inactive 

nominee of a TPH organization, an 

individual must be approved to be a 

TPH and become an effective nominee 

of the TPH organization, with 

authorized trading functions, within 90 

days of the approval to be a TPH.7

Additionally, if at any time an 

individual remains an inactive nominee 

for 9 consecutive months, the 

individual’s eligibility to be a TPH will 

be terminated and the individual must 

reapply to be a TPH in order to again 

become eligible for inactive nominee 

status.8

The Exchange proposes to eliminate 

Rule 3.9(e)(4) which provides that if an 

individual remains an inactive nominee 

for 9 consecutive months, the 

individual’s eligibility to be a TPH will 

be terminated and the individual must 

reapply to be a TPH in order to again 

become eligible for inactive nominee 

status. Particularly, the Exchange 

doesn’t believe the 9-month inactive 

status deadline adds any meaningful 

value, but rather is an arbitrary 

administrative requirement that the 

Exchange believes is unnecessary and 

no longer wishes to (nor does it believe 

is required to) maintain. For example, if 

a TPH organization wishes to add a new 

inactive nominee, such organization can 

merely request that the Exchange make 

that individual ‘‘effective’’ in the 

System and then request that the 

nominee be switched to the inactive 

status in the system just moments later 

to restart the clock. The Exchange does 

not believe such a deadline is necessary 

and therefore does not wish to maintain 

it. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 


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12500 Federal Register / Vol. 86, No. 40 / Wednesday, March 3, 2021 / Notices 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

11 Id. 

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

13 17 CFR 240.19b–4(f)(6). 

14 15 U.S.C. 78s(b)(3)(A)(iii). 

15 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 complied with this requirement. 16 17 CFR 200.30–3(a)(12). 

and, in particular, the requirements of 

Section 6(b) of the Act.9 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 10 requirements that the rules of 

an exchange be 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 11 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

the proposed rule change will remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system by 

eliminating an arbitrary and 

administrative process that the 

Exchange believes is outdated and an 

administrative burden to both TPHs and 

the Exchange. As noted above, the 

Exchange also does not believe such 

requirement adds meaningful value. The 

Exchange also does not believe it’s 

required to maintain the requirement 

and notes that other exchanges similarly 

do not include such requirement. The 

Exchange notes that it is not 

substantively changing any rights or 

obligations of nominees of floor Trading 

Permits. 

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. Particularly, 

the Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed change applies to 

all TPHs. The proposed rule change also 

does not address competitive issues, but 

rather, amends a requirement relating to 

nominees, particularly inactive 

nominees, to eliminate a practice that 

the Exchange no longer believes is 

necessary. The Exchange does not 

believe that the proposed rule change 

will impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act because the 

proposed change only affects TPHs of 

Cboe Options. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

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

19b–4(f)(6) thereunder.13 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 14 and Rule 

19b–4(f)(6)(iii) thereunder.15

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– 

CBOE–2021–011 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–CBOE–2021–011. 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; 

the Commission does not edit personal 

identifying information from 

submissions. 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. All submissions should 

refer to File Number SR–CBOE–2021– 

011 and should be submitted on or 

before March 24, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–04309 Filed 3–2–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: Notice is hereby given, 

pursuant to the provisions of the 

Government in the Sunshine Act, Public 

Law 94–409, that the Securities and 

Exchange Commission Investor 

Advisory Committee will hold a public 

meeting on Thursday, March 11, 2021. 

The meeting will begin at 10:00 a.m. 

(ET) and will be open to the public. 


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