Federal Register / Vol. 86, No. 163 / Thursday, August 26, 2021 / Notices 47665 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 91937 (May 19, 

2021), 86 FR 28161 (May 25, 2021) (File No. SR– 

FINRA–2021–010) (‘‘Notice’’). 

4See id. 

5See letter from Adam Arkel, Associate General 

Counsel, Office of General Counsel, FINRA, to 

Sheila Swartz, Division of Trading and Markets, 

Commission, dated June 30, 2021. 

6See Amendment No. 1. The comment letters 

received in response to the Notice and the full text 

of Amendment No. 1 are available on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-finra-2021-010/srfinra2021010.htm. 

7 15 U.S.C. 78s(b)(2)(B). 

8See Exchange Act Release No. 78081 (June 15, 

2016), 81 FR 40364 (June 21, 2016) (Notice of Filing 

of Amendment No. 3 and Order Granting 

Accelerated Approval to a Proposed Rule Change to 

Amend FINRA Rule 4210 (Margin Requirements) to 

Establish Margin Requirements for the TBA Market, 

as Modified by Amendment Nos. 1, 2, and 3; File 

No. SR–FINRA–2015–036). FINRA has extended the 

implementation date of the margin requirements 

(other than the risk limit determination 

requirements that became effective on December 15, 

2016) pursuant to SR–FINRA–2015–036 on several 

occasions, most recently to October 26, 2021. See 

Notice, 86 FR at 28162. 

9See Notice, 86 FR at 28163. 

10Amendment No. 1 also contains some 

conforming changes to paragraph numbering to 

accommodate the proposed modifications to the 

rule text. See Exhibit 4 to Amendment No. 1. 

11 15 U.S.C. 78s(b)(2)(B). 

12 Id. 

13 17 CFR 240.19b–4. 

14Section 19(b)(2) of the Act, as amended by the 

Securities Act Amendments of 1975, Public Law 

94–29 (June 4, 1975), grants the Commission 

Continued 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92713; File No. SR–FINRA– 

2021–010] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc., Inc.; Notice of Filing of 

Amendment No. 1 and Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Amend the 

Requirements for Covered Agency 

Transactions Under FINRA Rule 4210 

(Margin Requirements) as Approved 

Pursuant to SR–FINRA–2015–036 

August 20, 2021. 

I. Introduction 

On May 7, 2021, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change SR–FINRA– 

2021–010 (‘‘Proposed Rule Change’’) 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) 1 and Rule 19b–4 2

thereunder, to amend the margin 

requirements for covered agency 

transactions under FINRA Rule 4210.3

The Proposed Rule Change was 

published for public comment in the 

Federal Register on May 25, 2021.4 On 

June 30, 2021, FINRA consented to an 

extension of the time period in which 

the Commission must approve the 

Proposed Rule Change, disapprove the 

Proposed Rule Change, or institute 

proceedings to determine whether to 

approve or disapprove the Proposed 

Rule Change to August 23, 2021.5 On 

August 9, 2021, FINRA responded to the 

comment letters received in response to 

the Notice and filed an amendment to 

modify the Proposed Rule Change 

(‘‘Amendment No. 1’’).6 The 

Commission is publishing this notice 

and order to solicit comment on the 

Proposed Rule Change, as modified by 

Amendment No. 1, from interested 

persons and to institute proceedings 

pursuant to Section 19(b)(2)(B) of the 

Exchange Act 7 to determine whether to 

approve or disapprove the Proposed 

Rule Change, as modified by 

Amendment No. 1. 

II. Description of the Proposed Rule 

Change, as Modified by Amendment 

No. 1 

FINRA is proposing revisions to the 

margin requirements for Covered 

Agency Transactions in FINRA Rule 

4210 as approved pursuant to SR– 

FINRA–2015–036.8 Broadly, the 

Proposed Rule Change, as modified by 

Amendment No. 1 would: (1) Eliminate 

the two percent maintenance margin 

requirement that applies to non-exempt 

accounts under FINRA Rule 4210; (2) 

subject to specified conditions and 

limitations, permit FINRA members to 

take a capital charge in lieu of collecting 

margin for excess net mark to market 

losses on Covered Agency Transactions; 

and (3) make revisions designed to 

streamline, consolidate and clarify the 

Covered Agency Transaction rule 

language.9

Amendment No. 1 would make the 

following changes to the Proposed Rule 

Change: (1) Modify the definition of 

‘‘non-margin counterparty’’ to exclude 

small cash counterparties and other 

exempted counterparties; and (2) define 

a FINRA member’s ‘‘specified net 

capital deductions’’ as the net capital 

deductions required by paragraph 

(e)(2)(H)(ii)d.1 of FINRA Rule 4210 with 

respect to all unmargined excess net 

mark to market losses of its 

counterparties, except to the extent that 

the member, in good faith, expects such 

excess net mark to market losses to be 

margined by the close of business on the 

fifth business day after they arose.10 In 

addition, Amendment No. 1 states that, 

if the Commission approves the 

Proposed Rule Change, as modified by 

Amendment No. 1, FINRA will 

announce the effective date of the 

Proposed Rule Change, as modified by 

Amendment No. 1, in a Regulatory 

Notice to be published no later than 60 

days following Commission approval. 

The effective date would be between 

nine and ten months following the 

Commission’s approval. 

III. Proceedings To Determine Whether 

To Approve or Disapprove SR–FINRA– 

2021–010 and Grounds for Disapproval 

Under Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Exchange Act to 

determine whether the Proposed Rule 

Change, as modified by Amendment No. 

1, should be approved or disapproved.11

Institution of proceedings is appropriate 

at this time in view of the legal and 

policy issues raised by the Proposed 

Rule Change, as modified by 

Amendment No. 1. Institution of 

proceedings does not indicate that the 

Commission has reached any 

conclusions with respect to the 

Proposed Rule Change, as modified by 

Amendment No. 1. 

Pursuant to Section 19(b)(2)(B) of the 

Exchange Act,12 the Commission is 

providing notice of the grounds for 

disapproval under consideration. The 

Commission is instituting proceedings 

to allow for additional analysis and 

input concerning whether the Proposed 

Rule Change, as modified by 

Amendment No. 1, is consistent with 

the Exchange Act and the rules 

thereunder. 

IV. Request for Written Comments 

The Commission requests that 

interested persons provide written 

submissions of their views, data, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

Proposed Rule Change, as modified by 

Amendment No. 1. In particular, the 

Commission invites the written views of 

interested persons concerning whether 

the Proposed Rule Change, as modified 

by Amendment No. 1, is consistent with 

the Exchange Act and the rules 

thereunder. 

Although there do not appear to be 

any issues relevant to approval or 

disapproval that would be facilitated by 

an oral presentation of views, data, and 

arguments, the Commission will 

consider, pursuant to Rule 19b–4 under 

the Exchange Act,13 any request for an 

opportunity to make an oral 

presentation.14


jbell on DSKJLSW7X2PROD with NOTICES
47666 Federal Register / Vol. 86, No. 163 / Thursday, August 26, 2021 / Notices 

flexibility to determine what type of proceeding— 

either oral or notice and opportunity for written 

comments—is appropriate for consideration of a 

particular proposal by a self-regulatory 

organization. See Securities Act Amendments of 

1975, Senate Comm. on Banking, Housing & Urban 

Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 

(1975). 

15 17 CFR 200.30–3(a)(12); 17 CFR 200.30– 

3(a)(57). 

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

2 17 CFR 240.19b–4. 

3See BZX Rule 1.5(o). 

4See Securities Exchange Act Release No. 88704 

(April 21, 2020), 85 FR 23383 (April 27, 2020) (File 

No. 4–634) (Amendment No. 20 Approval Order). 

5See Securities Exchange Act Release No. 91875 

(May 12, 2021), 86 FR 26982 (May 18, 2021) (SR– 

CboeBZX–2021–036) (‘‘Notice’’). 

6 15 U.S.C. 78s(b)(2). 

7See Securities Exchange Act Release No. 92268 

(June 25, 2021), 86 FR 35143 (July 1, 2021). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

Proposed Rule Change, as modified by 

Amendment No. 1, should be approved 

or disapproved by September 10, 2021. 

Any person who wishes to file a rebuttal 

to any other person’s submission must 

file that rebuttal by September 16, 2021. 

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–2021–010 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–2021–010. 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, as modified by Amendment No. 

1, that are filed with the Commission, 

and all written communications relating 

to the Proposed Rule Change, as 

modified by Amendment No. 1, 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–2021–010, and 

should be submitted on or before 

September 10, 2021. Rebuttal comments 

should be submitted by September 16, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2021–18346 Filed 8–25–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92719; File No. SR– 

CboeBZX–2021–036] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Withdrawal of a Proposed Rule Change 

To Exclude a National Best Bid or Offer 

From the Calculation of the BZX 

Official Closing Price, as Provided in 

Rule 11.23(c)(2)(B)(ii)(b), That Is 

Outside the Bands Provided Under the 

Plan To Address Extraordinary Market 

Volatility 

August 20, 2021. 

On April 29, 2021, Cboe BZX 

Exchange, Inc. (the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to exclude a National Best Bid 

or Offer 3 (‘‘NBBO’’) from the calculation 

of the BZX Official Closing Price, as 

provided in Rule 11.23(c)(2)(B)(ii)(b), 

that is outside the bands provided under 

the National Market System Plan to 

Address Extraordinary Market Volatility 

(‘‘Limit Up-Limit Down Plan’’ or ‘‘LULD 

Plan’’).4

The proposed rule change was 

published for comment in the Federal 

Register on May 18, 2021.5 On June 25, 

2021, pursuant to Section 19(b)(2) of the 

Act,6 the Commission extended the time 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change to August 16, 2021.7 The 

Commission has received no comment 

letters on the proposed rule change. On 

August 12, 2021, the Exchange 

withdrew the proposed rule change 

(SR–CboeBZX–2021–036). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2021–18345 Filed 8–25–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92712; File No. SR–CBOE– 

2021–049] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule With Respect to Its Strategy 

Fee Cap 

August 20, 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 August 

17, 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 

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 

its Fees Schedule with respect to its 

strategy fee cap. The text of the 

proposed rule change is provided in 

Exhibit 5. 

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, 


jbell on DSKJLSW7X2PROD with NOTICES