13404 Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Notices 

1See Docket No. RM2018–3, Order Adopting 

Final Rules Relating to Non-Public Information, 

June 27, 2018, Attachment A at 19–22 (Order No. 

4679). 

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

2 17 CFR 240.19b–4. 

3Options 1, Section 1(b)(53) provides the term 

‘‘Short Term Option Series’’ [sic] a series in an 

option class that is approved for listing and trading 

on the Exchange in which the series is opened for 

trading on any Monday, Tuesday, Wednesday, 

Thursday or Friday that is a business day and that 

expires on the Monday, Wednesday or Friday of the 

next business week, or, in the case of a series that 

is listed on a Friday and expires on a Monday, is 

listed one business week and one business day 

prior to that expiration. If a Tuesday, Wednesday, 

Thursday or Friday is not a business day, the series 

may be opened (or shall expire) on the first business 

day immediately prior to that Tuesday, Wednesday, 

Thursday or Friday, respectively. For a series listed 

pursuant to this section for Monday expiration, if 

a Monday is not a business day, the series shall 

expire on the first business day immediately 

following that Monday. 

www.prc.gov). Non-public portions of 

the Postal Service’s request(s), if any, 

can be accessed through compliance 

with the requirements of 39 CFR 

3011.301.1

The Commission invites comments on 

whether the Postal Service’s request(s) 

in the captioned docket(s) are consistent 

with the policies of title 39. For 

request(s) that the Postal Service states 

concern market dominant product(s), 

applicable statutory and regulatory 

requirements include 39 U.S.C. 3622, 39 

U.S.C. 3642, 39 CFR part 3030, and 39 

CFR part 3040, subpart B. For request(s) 

that the Postal Service states concern 

competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3035, and 

39 CFR part 3040, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: MC2021–71 and 

CP2021–74; Filing Title: USPS Request 

to Add Priority Mail Contract 688 to 

Competitive Product List and Notice of 

Filing Materials Under Seal; Filing 

Acceptance Date: March 2, 2021; Filing 

Authority: 39 U.S.C. 3642, 39 CFR 

3040.130 through 3040.135, and 39 CFR 

3035.105; Public Representative: 

Gregory Stanton; Comments Due: March 

10, 2021. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2021–04714 Filed 3–5–21; 8:45 am] 

BILLING CODE;P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91238; File No. SR-Phlx2021–10] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing of 

Proposed Rule Change To Permit 

Monday and Wednesday Expirations 

for Options Listed Pursuant to the 

Short Term Option Series Program on 

the Invesco QQQ TrustSM Series 

(‘‘QQQ’’) ETF Trust 

March 2, 2021. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on February 

22, 2021, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the 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 proposes to permit 

Monday and Wednesday expirations for 

options listed pursuant to the Short 

Term Option Series Program on the 

Invesco QQQ TrustSM Series (‘‘QQQ’’) 

ETF Trust. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, 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 

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 

Phlx Options 4, Section 5 at 

Commentary .11 to allow Monday and 

Wednesday expirations for options 

listed pursuant to the Short Term 

Option Series Program (‘‘Program’’) on 

QQQ. 

A Short Term Option Series means a 

series in an option class that is 

approved for listing and trading on the 

Exchange in which the series is opened 

for trading on any Monday, Tuesday, 

Wednesday, Thursday or Friday that is 

a business day and that expires on the 

Monday, Wednesday or Friday of the 

next business week, or, in the case of a 

series that is listed on a Friday and 

expires on a Monday, is listed one 

business week and one business day 

prior to that expiration.3 The Exchange 

is proposing to amend Phlx Options 4, 

Section 5 at Commentary .11 to permit 

the listing of options series that expire 

on Mondays and Wednesdays in QQQ. 

Monday Expirations 

As proposed, with respect to Monday 

QQQ Expirations within Commentary 

.11 to Options 4, Section 5, the 

Exchange may open for trading on any 

Friday or Monday that is a business day 

series of options on QQQ to expire on 

any Monday of the month that is a 

business day and is not a Monday in 

which Quarterly Options Series on the 

same class expire (‘‘Monday QQQ 

Expirations’’), provided that Monday 

QQQ Expirations that are listed on a 

Friday must be listed at least one 

business week and one business day 

prior to the expiration. The Exchange 

may list up to five consecutive Monday 

QQQ Expirations at one time; the 

Exchange may have no more than a total 

of five Monday QQQ Expirations. 

Wednesday Expirations 

As proposed, with respect to 

Wednesday QQQ Expirations within 

Commentary .11 to Options 4, Section 5, 

the Exchange may open for trading on 

any Tuesday or Wednesday that is a 

business day series of options on QQQ 

to expire on any Wednesday of the 

month that is a business day and is not 

a Wednesday in which Quarterly 

Options Series on the same class expire 

(‘‘Wednesday QQQ Expirations’’). The 

Exchange may list up to five 

consecutive Wednesday QQQ 

Expirations at one time; the Exchange 

may have no more than a total of five 

Wednesday QQQ Expirations and a total 

of five Wednesday QQQ Expirations 

will be subject to the provisions of this 

Rule. 

Monday and Wednesday Expirations 

The interval between strike prices for 

the proposed Monday and Wednesday 

QQQ Expirations will be the same as 


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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Notices 13405 

4See Commentary .11(e) to Options 4, Section 5. 

5See Commentary .11(e) to Options 4, Section 5. 

6See Commentary .11 at Options 4, Section 5. 

7See Cboe Rule 4.13(e)(1) ‘‘. . . If the Exchange 

is not open for business on a respective Monday, 

the normally Monday expiring Weekly Expirations 

will expire on the following business day. If the 

Exchange is not open for business on a respective 

Wednesday or Friday, the normally Wednesday or 

Friday expiring Weekly Expirations will expire on 

the previous business day.’’ 

8See Phlx Options 4A, Section 12(b)(5). 

9See ISE Supplementary Material .07 to Options 

4A, Section 12. 

10See Commentary .11(a) to Options 4, Section 5. 

11See Commentary .11(a) to Options 4, Section 5. 

12See current Commentary .11(b) to Options 4, 

Section 5. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

15See Commentary .11 at Options 4, Section 5. 

16See note 6 [sic] above. 

those for the current Short Term Option 

Series for Wednesday and Friday 

expirations applicable to the Program.4

Specifically, the Monday and 

Wednesday QQQ Expirations will have 

a $0.50 strike interval minimum.5 As is 

the case with other equity options series 

listed pursuant to the Program, the 

Monday and Wednesday QQQ 

Expiration series will be P.M.-settled. 

Pursuant to Options 1, Section 

1(b)(53), with respect to the Program, if 

Monday is not a business day the series 

shall expire on the first business day 

immediately following that Monday. 

This procedure differs from the 

expiration date of Wednesday 

expiration series that are scheduled to 

expire on a holiday. Pursuant to Options 

1, Section 1(b)(53) a Wednesday 

expiration series shall expire on the first 

business day immediately prior to that 

Wednesday, e.g., Tuesday of that week, 

if the Wednesday is not a business day. 

For purposes of QQQ, however, the 

Exchange believes that it is preferable to 

require Monday expiration series in this 

scenario to expire on the Tuesday of 

that week rather than the previous 

business day, e.g., the previous Friday, 

since the Tuesday is closer in time to 

the scheduled expiration date of the 

series than the previous Friday, and 

therefore may be more representative of 

anticipated market conditions. Monday 

SPY expirations are treated in this 

manner today.6 Cboe Exchange, Inc. 

(‘‘Cboe’’) uses the same procedure for 

options on the S&P 500 index (‘‘SPX’’) 

with Monday expirations that are listed 

pursuant to its Nonstandard Expirations 

Pilot Program and that are scheduled to 

expire on a holiday.7 Also, Nasdaq Phlx 

LLC (‘‘Phlx’’) 8 and Nasdaq ISE, LLC 

(‘‘ISE’’) 9 use the same procedure for 

options on the Nasdaq-100® (‘‘NDX’’) 

with Monday expirations that are listed 

pursuant to its [sic] Nonstandard 

Expirations Pilot Programs, respectively. 

Currently, for each option class 

eligible for participation in the Program, 

the Exchange is limited to opening 

thirty (30) series for each expiration date 

for the specific class.10 The thirty (30) 

series restriction does not include series 

that are open by other securities 

exchanges under their respective short 

term option rules; the Exchange may list 

these additional series that are listed by 

other exchanges.11 This thirty (30) series 

restriction would apply to Monday and 

Wednesday QQQ Expiration series as 

well. In addition, the Exchange will be 

able to list series that are listed by other 

exchanges, assuming they file similar 

rules with the Commission to list QQQ 

options expiring on Mondays and 

Wednesdays. 

Finally, the Exchange is amending 

Commentary .11(b) to Options 4, 

Section 5, which addresses the listing of 

Short Term Options Series that expire in 

the same week as monthly or quarterly 

options series. Currently, that rule states 

that no Short Term Option Series may 

expire in the same week in which 

monthly option series on the same class 

expire (with the exception of Monday 

and Wednesday SPY Expirations) or, in 

the case of Quarterly Options Series, on 

an expiration that coincides with an 

expiration of Quarterly Option Series on 

the same class.12 As with Monday and 

Wednesday SPY Expirations, the 

Exchange is proposing to permit 

Monday and Wednesday QQQ 

Expirations to expire in the same week 

as monthly options series on the same 

class. The Exchange believes that it is 

reasonable to extend this exemption to 

Monday and Wednesday QQQ 

Expirations because Monday and 

Wednesday QQQ Expirations and 

standard monthly options will not 

expire on the same trading day, as 

standard monthly options expire on 

Fridays. Additionally, the Exchange 

believes that not listing Monday and 

Wednesday QQQ Expirations for one 

week every month because there was a 

monthly QQQ expiration on the Friday 

of that week would create investor 

confusion. 

The Exchange does not believe that 

any market disruptions will be 

encountered with the introduction of 

P.M.-settled Monday and Wednesday 

QQQ expirations. The Exchange has the 

necessary capacity and surveillance 

programs in place to support and 

properly monitor trading in the 

proposed Monday and Wednesday QQQ 

Expirations. The Exchange currently 

trades P.M.-settled Short Term Option 

Series that expire Monday and 

Wednesday for SPY and has not 

experienced any market disruptions nor 

issues with capacity. Today, the 

Exchange has surveillance programs in 

place to support and properly monitor 

trading in Short Term Option Series that 

expire Monday and Wednesday for SPY. 

Similar to SPY, the introduction of 

QQQ Monday and Wednesday 

expirations will, among other things, 

expand hedging tools available to 

market participants and continue the 

reduction of the premium cost of buying 

protection. The Exchange believes that 

Monday and Wednesday QQQ 

expirations will allow market 

participants to purchase QQQ based on 

their timing as needed and allow them 

to tailor their investment and hedging 

needs more effectively. 

Implementation 

The Exchange intends to begin 

implementation of the proposed rule 

change in Q2 2021. The Exchange will 

issue an Options Trader Alert to 

Participants with the date of 

implementation. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,13 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,14 in particular, in that it is 

designed 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 providing the 

investing public and other market 

participants more flexibility to closely 

tailor their investment and hedging 

decisions in QQQ options, thus 

allowing them to better manage their 

risk exposure. 

In particular, the Exchange believes 

the Program has been successful to date 

and that Monday and Wednesday QQQ 

Expirations should simply expand the 

ability of investors to hedge risk against 

market movements stemming from 

economic releases or market events that 

occur throughout the month in the same 

way that the Program has expanded the 

landscape of hedging. Similarly, the 

Exchange believes Monday and 

Wednesday QQQ Expirations should 

create greater trading and hedging 

opportunities and flexibility, and will 

provide customers with the ability to 

tailor their investment objectives more 

effectively. Phlx currently lists Monday 

and Wednesday SPY Expirations.15

Also, Cboe 16 currently permits Monday 

and Wednesday expirations for other 

options with a weekly expiration, such 


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13406 Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Notices 

17See note 8 above. 

18See note 9 above. 

19See Commentary .11 at Options 4, Section 5. 

20 Id. [sic] 

21See note 8 above. 

22See note 9 above. 

23See Commentary .11 at Options 4, Section 5. 

24 Id. [sic] 

25See note 8 above. 

26See note 9 above. 

as options on the SPX pursuant to its 

Nonstandard Expirations Pilot Program 

and Phlx 17 and ISE 18 currently permit 

Monday and Wednesday expirations for 

other options with a weekly expiration 

on NDX pursuant to its [sic] 

Nonstandard Expirations Pilot 

Programs, respectively. 

With the exception of Monday 

expiration series that are scheduled to 

expire on a holiday, there are no 

material differences in the treatment of 

Monday and Wednesday QQQ 

expirations for Short Term Option 

Series. The Exchange believes that it is 

consistent with the Act to treat Monday 

expiration series that expire on a 

holiday differently than Wednesday or 

Friday expiration series, since the 

proposed treatment for Monday 

expiration series will result in an 

expiration date that is closer in time to 

the scheduled expiration date of the 

series, and therefore may be more 

representative of anticipated market 

conditions. Monday SPY expirations are 

treated in this manner today.19 Cboe 20

uses the same procedure for SPX 

options with Monday expirations that 

are listed pursuant to its Nonstandard 

Expirations Pilot Program and that are 

scheduled to expire on a holiday, as do 

Phlx 21 and ISE 22 for NDX options with 

Monday expirations that are listed 

pursuant to their Nonstandard 

Expirations Pilot Programs, respectively. 

Given the similarities between 

Monday and Wednesday SPY 

Expirations and the proposed Monday 

and Wednesday QQQ Expirations, the 

Exchange believes that applying the 

provisions in Commentary .11 to 

Options 4, Section 5 that currently 

apply to Monday and Wednesday SPY 

Expirations to Monday and Wednesday 

QQQ Expirations is justified. For 

example, the Exchange believes that 

allowing Monday and Wednesday QQQ 

Expirations and monthly QQQ 

expirations in the same week will 

benefit investors and minimize investor 

confusion by providing Monday and 

Wednesday QQQ Expirations in a 

continuous and uniform manner. The 

Exchange also believes that is 

appropriate to amend Commentary 

.11(b) to Options 4, Section 5 to clarify 

that no Short Term Option Series may 

expire on the same day as an expiration 

of Quarterly Option Series on the same 

class, same as SPY. 

The Exchange represents that it has an 

adequate surveillance program in place 

to detect manipulative trading in 

Monday and Wednesday expirations, 

including Monday and Wednesday 

QQQ Expirations, in the same way that 

it monitors trading in the current Short 

Term Option Series and trading in 

Monday and Wednesday SPY 

Expirations. The Exchange also 

represents that it has the necessary 

systems capacity to support the new 

options series. Finally, the Exchange 

does not believe that any market 

disruptions will be encountered with 

the introduction of Monday and 

Wednesday QQQ expirations. 

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 

Exchange notes that having Monday and 

Wednesday QQQ expirations is not a 

novel proposal, as Monday and 

Wednesday SPY Expirations are 

currently listed on Phlx.23 Cboe 24 uses 

the same procedure for SPX options 

with Monday expirations that are listed 

pursuant to its Nonstandard Expirations 

Pilot Program and that are scheduled to 

expire on a holiday, as do Phlx 25 and 

ISE 26 for NDX options with Monday 

expirations that are listed pursuant to 

their Nonstandard Expirations Pilot 

Programs, respectively. 

The Exchange does not believe the 

proposal will impose any burden on 

intra-market competition, as all market 

participants will be treated in the same 

manner under this proposal. 

Additionally, the Exchange does not 

believe the proposal will impose any 

burden on inter-market competition, as 

nothing prevents the other options 

exchanges from proposing similar rules 

to list and trade Short-Term Option 

Series with Monday and Wednesday 

expirations. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or 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 

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– 

Phlx–2021–10 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–Phlx–2021–10. 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 


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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Notices 13407 

27 17 CFR 200.30–3(a)(12). 

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 Securities Exchange Act Release No. 90900 

(January 11, 2021), 86 FR 4149 (January 15, 2021) 

(SR–CboeEDGA–2020–032). 6For example, if the Exchange becomes aware of 

a transaction fee billing error on February 4, 2021, 

the Exchange will resolve the error by crediting or 

debiting Members based on the fees or rebates that 

should have been applied to any impacted 

transactions during November, 2020, December 

2020 and January 2021. The Exchange notes that 

because it bills in arrears, the Exchange would be 

able to correct the error in advance of issuing the 

February 2021 invoice and therefore, transactions 

impacted through the date of discovery (in this 

example, February 4, 2021) and thereafter, would be 

billed correctly. 

7See e.g. Securities Exchange Act Release No. 

87650 (December 3, 2019), 84 FR 67304 (December 

9, 2019) (SR–NYSECHX–2019–024); Securities 

Exchange Act Release No. 84430 (October 16, 2018), 

83 FR 53347 (October 22, 2018) (SR–NYSENAT– 

2018–23); and Securities Exchange Act Release No. 

79060 (October 6, 2016), 81 FR 70716 (October 13, 

2016) (SR–ISEGemini–2016–11). 

8The Exchange corrected errors in advance of 

issuing the October 2020 invoice and therefore, 

transactions impacted through the date of discovery 

and thereafter, were billed correctly. 

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–Phlx–2021–10 and should 

be submitted on or before March 29, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–04679 Filed 3–5–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91232; File No. SR– 

CboeEDGA–2021–006] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposal To Permit the Exchange To 

Look Back Only to July 2020 To 

Correct Certain Billing Errors Which 

Were Discovered in October 2020 

March 2, 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 

18, 2021, Cboe EDGA Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘EDGA’’) 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 EDGA Exchange, Inc. (‘‘EDGA’’ 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposal to 

permit the Exchange to look back only 

to July 2020 to correct certain billing 

errors which were discovered in 

October 2020. This rule change does not 

provide for any modifications to the text 

of the Exchange’s rules or fees schedule. 

The text of the proposal is also 

available on the Exchange’s website 

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

regulation/rule_filings/edga/), 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 recently amended its 

fees schedule to adopt a provision 

relating to billing errors and fee 

disputes.5 Specifically, the Exchange 

adopted a provision that provides that 

all fees and rebates assessed prior to the 

three full calendar months before the 

month in which the Exchange becomes 

aware of a billing error shall be 

considered final. Particularly, the 

Exchange will resolve an error by 

crediting or debiting Members and NonMembers based on the fees or rebates 

that should have been applied in the 

three full calendar months preceding 

the month in which the Exchange 

became aware of the error, including to 

all impacted transactions that occurred 

during those months.6 The Exchange 

will apply the three month look back 

regardless of whether the error was 

discovered by the Exchange or by a 

Member or Non-Member that submitted 

a fee dispute to the Exchange. The 

Exchange’s fees schedule also provides 

that all disputes concerning fees and 

rebates assessed by the Exchange would 

have to be submitted to the Exchange in 

writing and accompanied by supporting 

documentation. The purpose of this 

policy is to provide both the Exchange 

and Members and Non-Members subject 

to the Exchange’s fee schedule finality 

and the ability to close their books after 

a known period of time. The Exchange 

further notes that several other 

exchanges have adopted similar 

provisions in their rules.7

The Exchange proposes to apply the 

recently adopted billing policy to 

transactions impacted by billing errors 

that were discovered in October 2020. 

Particularly, in October 2020, the 

Exchange’s affiliate, Cboe BZX 

Exchange, Inc. identified a billing error 

relating to certain fee codes. As a result 

of the discovery, the Exchange, along 

with its affiliates, conducted a review of 

additional fee code configurations 

across each Exchange, which review 

was only recently completed. The 

review resulted in the discovery of 

additional billing errors relating to fee 

codes. These errors resulted in various 

EDGA Members being under-billed or 

over-billed, over the course of several 

years. In the absence of applying the 

recently adopted billing policy to 

transactions impacted by the October 

2020 billing errors, the Exchange would 

be required to credit or debit Members 

based on the fees or rebates that should 

have been applied to all impacted 

transactions, regardless of how far back 

the transactions occurred (which as 

noted above, is several years). If the 

Exchange were permitted to apply the 

current rule language to the billing 

errors discovered in October 2020 

however, then the Exchange could limit 

its look back in correcting those errors 

to only those transactions that occurred 

in the three months preceding the 

discovery of the errors (i.e., July 2020 

through September 2020).8 Moreover, 

the Exchange notes there are a number 

of Members that would benefit from the 


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