Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 51427 

30 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The proposed rule change updates the term 

‘‘payment’’ to ‘‘rebate’’ in the MSCI and MRUT 

LMM Incentive Programs, which more accurately 

reflects the type of payment an LMM appointed to 

the MRUT or MSCI LMM Incentive Program is 

eligible to receive and is consistent with language 

in the other LMM Incentive Programs. 

4Located in the ‘‘MRUT LMM Incentive 

Program’’ table in the Fees Schedule. 

5See supra note 3. 

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. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSENAT–2021–16 and should be 

submitted on or before October 6, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19853 Filed 9–14–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92915; File No. SR–CBOE– 

2021–050] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule Relating to Its Lead MarketMaker Incentive Programs 

September 9, 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 

September 1, 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, 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 Substance of 

the Proposed Rule Change 

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

or ‘‘Cboe Options’’) proposes to amend 

its Fees Schedule with respect to its 

Lead Market-Maker (‘‘LMM’’) Incentive 

Programs. 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/CBOELegalRegulatory

Home.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 its 

Fees Schedule to amend: the Mini 

Russell 2000 Index (‘‘MRUT’’) options 

LMM Incentive Program; the MSCI 

EAFE Index (‘‘MXEA’’) options and 

MSCI Emerging Markets Index 

(‘‘MXEF’’) options LMM Incentive 

Program (i.e., the MSCI LMM Incentive 

Program); and the Regular Trading 

Hours (‘‘RTH’’) S&P 500 ESG Index 

(‘‘SPESG’’) LMM Incentive Program, and 

to remove an expiring fee waiver, 

effective September 1, 2021. 

Each LMM Incentive Program 

provides a rebate 3 to Trading Permit 

Holders (‘‘TPHs’’) with LMM 

appointments to the respective 

incentive program that meet certain 

quoting standards in the applicable 

series in a month. The Exchange notes 

that meeting or exceeding the quoting 

standards (both current and as 

proposed; described in further detail 

below) in each of the LMM Incentive 

Program products to receive the 

applicable rebate (both currently offered 

and as proposed; described in further 

detail below) is optional for an LMM 

appointed to a program. Rather, an 

LMM appointed to an incentive program 

is eligible to receive the corresponding 

rebate if it satisfies the applicable 

quoting standards, which the Exchange 

believes encourages the LMM to provide 

liquidity in the applicable class and 

trading session. The Exchange may 

consider other exceptions to the 

programs’ quoting standards based on 

demonstrated legal or regulatory 

requirements or other mitigating 

circumstances. In calculating whether 

an LMM appointed to an incentive 

program meets the applicable program’s 

quoting standards each month, the 

Exchange excludes from the calculation 

in that month the business day in which 

the LMM missed meeting or exceeding 

the quoting standards in the highest 

number of the applicable series. 

MRUT LMM Incentive Program 

The Exchange first proposes to amend 

its MRUT LMM Incentive Program. 

Currently, the program provides that if 

the appointed LMM in MRUT provides 

continuous electronic quotes during 

RTH that meet or exceed the program’s 

heightened quoting standards 4 in at 

least 99% of the series 90% of the time 

in a given month, the LMM will receive 

a rebate 5 for that month in the amount 

of $20,000 (or pro-rated amount if an 

appointment begins after the first 

trading day of the month or ends prior 

to the last trading day of the month). 

Specifically, the Exchange proposes to 

amend certain quotes widths contained 

in the MRUT LMM Incentive Program’s 

heightened quoting standards. 

Currently, for expiring MRUT options 

(14 days or less), the appointed LMM 

must meet, among other heightened 

quoting standards, a $0.15 width for a 

quote size of 1 contract at a premium 

level of $1.01 to $3.00 and a $0.15 width 

for a quote size of 1 contract at a 

premium level of $3.01 to $5.00. The 

proposed rule change marginally 

decreases both such widths in these 

categories to $0.14. Currently, for MRUT 

options expiring in the near term (15 

days to 60 days), the appointed LMM 

must meet, among other heightened 

quoting standards, a $0.15 width for a 

quote size of 1 contract at a premium 

level of $1.01 to $3.00, a $0.18 width for 

a quote size of one contract at a 

premium level of $3.01 to $5.00, and a 

$0.20 width for a quote size of 1 

contract at a premium level of $5.01 to 

$10.00. The proposed rule change 

marginally decreases these widths to a 

$0.13 width, a $0.16 width, and a $0.18 

width, respectively. The Exchange also 

proposes to increase the compensation 

payment offered by the MRUT LMM 

Incentive Program to an LMM appointed 

to the program for meeting the 


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51428 Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 

6Located in the ‘‘MSCI LMM Incentive Program’’ 

table in the Fees Schedule. 

7See supra note 3. 

8The proposed rule change also makes a 

nonsubstantive clarifying change that makes it 

explicit that the monthly payment may be a prorated amount if an appointment begins after the first 

trading day of the month or ends prior to the last 

trading day of the month, consistent with language 

currently in each of the LMM Incentive Programs 

and the manner in which the MSCI LMM Incentive 

Program currently works today. 

heightened quoting standards in a 

month from $20,000 to $25,000. 

The proposed rule change also makes 

a nonsubstantive, clarifying change to 

the language regarding the program’s 

MRUT Volume Incentive Pool, which 

currently states that, ‘‘in addition to the 

above rebate, if the appointed LMM 

meets or exceeds the above heightened 

quoting standards in a given month and 

provides an average daily volume 

(‘‘ADV’’) in MRUT that meets or exceeds 

25,000 contracts in a given month, the 

LMM will receive the Monthly ADV 

Payment amount that corresponds to the 

level of ADV in MRUT for that month 

per the MRUT Volume Incentive Pool 

program below.’’ As proposed, this 

language provides that, if in addition to 

the above rebate, if the appointed LMM 

meets or exceeds the above heightened 

quoting standards in a given month, the 

LMM will receive the Monthly ADV 

Payment amount that corresponds to the 

level of ADV provided by the LMM in 

MRUT for that month per the MRUT 

Volume Incentive Pool program below. 

The Exchange believes the updated 

language is simpler and more 

straightforward regarding the 

application of the MRUT Volume 

Incentive Pool program to an LMM that 

meets or exceeds the program’s 

heightened quoting standards. The 

Exchange believes that the proposed 

rule change will encourage LMMs 

appointed to the MRUT LMM Incentive 

Program to strive to meet tighter width 

standards in MRUT options in order to 

receive the proposed higher rebate 

offered under the MRUT LMM Incentive 

Program. Tighter spreads generally 

signal an increase in activity from other 

market participants, contributing to 

overall deeper, more liquid markets, 

price discovery and transparency, and a 

robust market ecosystem to the benefit 

of all market participants. 

In addition to this, the proposed rule 

change also makes a nonsubstantive 

change to the Fees Schedule by 

removing an expiring fee waiver in 

footnote 32 (and the locations in the 

Fees Schedule to which it is appended 

to MRUT options for Market-Maker and 

Firm transaction fees in the Rate 

Table—All Products Excluding 

Underlying Symbol List A), which 

provides that transaction fees for orders 

executed in MRUT options with a 

capacity code of ‘‘F’’, ‘‘L’’, or ‘‘M’’ will 

be waived through August 31, 2021. As 

intended, the waiver expired on August 

31, 2021 and such orders will be 

assessed the standard transaction fees 

for orders submitted in MRUT options 

in a Market-Maker ($0.03 per contract) 

or Firm ($0.02 per contract) capacity. 

MSCI (MXEA and MXEF) LMM 

Incentive Program 

The Exchange proposes to amend its 

MSCI LMM Incentive Program. 

Currently, the program provides that if 

the appointed LMM in MXEA and 

MXEF options (collectively, ‘‘MSCI 

options’’) provides continuous 

electronic quotes during RTH that meet 

or exceed the heightened quoting 

standards 6 in at least 90% of the MXEA 

and MXEF series 80% of the time in a 

given month, the LMM will receive a 

rebate 7 for that month in the amount of 

$20,000 per class, per month.8

First, the Exchange proposes to 

amend the number of days for MSCI 

options to be considered as ‘‘expiring’’ 

and as ‘‘near-term’’ per the program. 

Specifically, the proposed rule change 

updates the days to expiry for MSCI 

options to be considered as expiring for 

purposes of the program from 7 days or 

less to 6 days or less and updates the 

days to expiry for MSCI options to be 

considered as near-term for the 

purposes of the program from 8 days to 

60 days to 7 days to 60 days. The 

Exchange has observed that there is 

more significant demand for and 

participation in MSCI options with time 

to expiration of a week or more, whereas 

those options with less than a week to 

expiration tend to experience 

significantly less demand and 

participation, wherein it becomes more 

difficult for LMMs to quote within 

specified widths and sizes. As a result, 

the proposed rule change to update the 

days to expiry within the expiring and 

near-term categories is intended to 

delineate the expiry categories in a 

manner that better reflects the 

differences in market characteristics, 

and thus the difference in the difficulty 

in meeting the quoting standards that 

correspond to each, between options 

that expire in less than a week and 

options that expire in a week or more 

(up to 60 days). 

Next, the Exchange proposes to 

amend certain quote widths and sizes 

contained in the MSCI LMM Incentive 

Program’s heightened quoting 

standards. Currently, for expiring MSCI 

options, the appointed LMM must meet, 

among other heightened quoting 

standards, a $3.00 width for a quote size 

of 5 contracts at a premium of $1.01 to 

$3.00. The proposed rule change 

marginally decreases this width to 

$2.50. For MSCI options expiring in the 

near-term, the appointed LMM must 

currently meet, among other heightened 

quoting standards, a $1.20 width for a 

quote size of 20 contracts at a premium 

level of $0.00 to $5.00 and a $5.00 width 

for a quote size of 10 contracts at a 

premium level of $15.01 to $50.00. The 

proposed rule change marginally 

reduces these widths to $1.05 and $4.50, 

respectively. Additionally, the proposed 

rule change also slightly reduces the 

quote size standards for most all of the 

premium categories for MSCI options 

expiring in the near-term. More 

specifically, the proposed rule change 

reduces the quote size standard of 20 

contracts at a premium level of $0.00 to 

$5.00 to 12 contracts, the quote size 

standard of 15 contracts at a premium 

level of $5.01 to $15.00 to 9 contracts, 

the quote size standard of 10 contracts 

at a premium level of $15.01 to $50.00 

to 7 contracts, the quote size standard of 

7 contracts at a premium level of $50.01 

to $100.00 to 5 contracts, and the quote 

size standard of 3 contracts at a 

premium level of $100.01 to $200.00 to 

2 contracts. For MSCI options expiring 

in the mid-term (61 days to 270 days), 

the appointed LMM must currently 

meet, among other heightened quoting 

standards, a $10.00 width for a quote 

size of 57 [sic] contracts at a premium 

of $15.01 to $50.00. The proposed rule 

change also marginally decreases this 

quote width to $9.00. The proposed rule 

change also slightly reduces the quote 

size standards for certain premium 

categories for MSCI options expiring in 

the mid-term by reducing the quote size 

standard of 15 contracts at a premium 

level of $0.00 to $5.00 to 10 contracts, 

the quote size standard of 10 contracts 

at a premium level of $5.01 to $15.00 to 

8 contracts, and the quote size standard 

of 2 [sic] contracts at a premium level 

of $100.01 to $200.00 to 2 contracts. 

The Exchange believes that the 

proposed tighter widths and smaller 

quote sizes for the MSCI LMM Incentive 

Program’s heightened quoting 

requirements will incentivize LMMs 

appointed to the program to make 

tighter markets and quote more 

aggressively in MSCI options to receive 

the current rebate offered under the 

program, resulting in tighter spreads 

and increased liquidity to the benefits of 

investors. 

RTH SPESG LMM Incentive Program 

The Exchange proposes to amend the 

RTH SPESG LMM Incentive Program. 

Currently, the program provides that, if 


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9Located in the ‘‘RTH SPESG LMM Incentive 

Program’’ table in the Fees Schedule. 

10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78f(b)(4). 

the appointed LMM provides 

continuous electronic quotes during 

RTH that meet or exceed the program’s 

heightened quoting standards 9 in at 

least 60% of SPESG series 90% of the 

time in a given month, the LMM will 

receive a rebate for that month in the 

amount of a pro-rata share of a 

compensation pool equal to $50,000 (or 

pro-rated amount if an appointment 

begins after the first trading day of the 

month or ends prior to the last trading 

day of the month) for that month. If, for 

example, two LMMs meet the 

heightened continuous quoting standard 

in SPESG during a month, each will 

receive $25,000. If only one LMM meets 

the heightened continuous quoting 

standard in SPESG during a month, that 

LMM would receive $50,000 and the 

other one would receive nothing. The 

Exchange proposes to eliminate the 

compensation pool structure (and 

related explanatory language) currently 

applicable to the RTH SPESG LMM 

Incentive Program and adopt a flat-rate 

rebate structure per month, consistent 

with the current flat-rate rebate 

structure of the other LMM Incentive 

Programs. Specifically, the proposed 

rule change provides that if the 

appointed LMM provides continuous 

electronic quotes during RTH that meet 

or exceed the same heightened quoting 

standards in the same percentage of the 

series (60%) for the same percentage of 

the time (90%) in a given month, the 

LMM will receive a rebate for that 

month in the amount of $20,000 (or prorated amount if an appointment begins 

after the first trading day of the month 

or ends prior to the last trading day of 

the month) for that month. 

The Exchange also proposes to offer 

an SPESG Volume Incentive Pool under 

the RTH SPESG LMM Incentive 

Program, like that offered under the 

MRUT LMM Incentive Program. 

Specifically, the proposed rule change 

to the program provides that, in 

addition to the above rebate (i.e., the 

proposed $20,000 per month rebate), if 

the appointed LMM meets or exceeds 

the above heightened quoting standards 

in a given month, the LMM will receive 

the Monthly ADV Payment amount that 

corresponds to the level of ADV 

provided by the LMM in SPESG for that 

month per the SPESG Volume Incentive 

Pool program below. 

SPESG ADV 

Monthly 

ADV 

payment 

0–999 contracts ............................ $0.00 

1,000–4,999 contracts .................. 5,000 

SPESG ADV 

Monthly 

ADV 

payment 

5,000–10,000 contracts ................ 15,000 

Greater than 10,000 contracts ..... 20,000 

The proposed SPESG Volume 

Incentive Pool offered by the RTH 

SPESG LMM Incentive Program is 

designed to incentivize LMMs to further 

increase the provision of liquidity in 

SPESG options. Increased liquidity in 

SPESG options would, in turn, provide 

greater trading opportunities, added 

market transparency and enhanced 

price discovery for all market 

participants in SPESG. 

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 

and, in particular, the requirements of 

Section 6(b) of the Act.10 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 11 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 

Section 6(b)(4) of the Act,12 which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. 

Regarding each of the LMM Incentive 

Programs generally, the Exchange 

believes it is reasonable, equitable and 

not unfairly discriminatory to continue 

to offer these financial incentives, 

including as amended, to LMMs 

appointed to the programs, because it 

benefits all market participants trading 

in the corresponding products during 

RTH. These incentive programs 

encourage the LMMs appointed to such 

programs to satisfy the heightened 

quoting standards, which may increase 

liquidity and provide more trading 

opportunities and tighter spreads. 

Indeed, the Exchange notes that these 

LMMs serve a crucial role in providing 

quotes and the opportunity for market 

participants to trade MRUT, MSCI and 

SPESG options, as applicable, which 

can lead to increased volume, providing 

for robust markets. The Exchange 

ultimately offers the LMM Incentive 

Programs, as amended, to sufficiently 

incentive LMMs appointed to each 

incentive program to provide key 

liquidity and active markets in the 

corresponding program products during 

the corresponding trading sessions, and 

believes that these incentive programs, 

as amended, will continue to encourage 

increased quoting to add liquidity in 

each of the corresponding program 

products, thereby protecting investors 

and the public interest. The Exchange 

also notes that an LMM appointed to an 

incentive program may undertake added 

costs each month in order to satisfy that 

heightened quoting standards (e.g., 

having to purchase additional logical 

connectivity). 

Particularly, the Exchange believes 

that it is reasonable to amend certain 

widths and sizes in the heightened 

quoting standards under the MRUT and 

MSCI LMM Incentive Programs, as 

applicable. The Exchange believes the 

proposed rule change to tighten certain 

widths and reduce certain quote size 

standards in the MRUT and MSCI LMM 

Incentive Programs, as applicable, is 

reasonably designed to facilitate LMMs 

appointed to the MRUT and MSCI 

Incentive Programs to post tighter 

spreads and more aggressive quotes in 

MRUT and MSCI options, as applicable, 

in order to meet the heightened quoting 

standards and receive the rebate offered 

under the incentive program. An 

increase in quoting activity and tighter 

quotes tends to signal additional 

corresponding increase in order flow 

from other market participants, which 

benefits all investors by deepening the 

Exchange’s liquidity pool, potentially 

providing even greater execution 

incentives and opportunities, offering 

additional flexibility for all investors to 

enjoy cost savings, supporting the 

quality of price discovery, promoting 

market transparency and improving 

investor protection. The Exchange also 

believes that the proposed widths and 

sizes are reasonable because they 

remain generally aligned with the 

current heightened standards in each 

program, as the proposed widths and 

sizes are only marginally reduced in 

order to incentivize an increase in 

quoting activity and the provision of 

tighter markets. The Exchange also 

notes that another options exchange 

offers similar incentive programs with 


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13See e.g., Nasdaq Phlx Options 7 Pricing 

Schedule, Section 5.B, XND Incentive Program. 

14See Cboe Global Markets, U.S. Options Market 

Volume Summary by Month (August 24, 2021), 

available at http://markets.cboe.com/us/options/ 

market_share/. 

corresponding quote widths, sizes and 

premiums of comparable ranges.13

Likewise, the Exchange believes that the 

proposed rule change to adopt an 

SPESG Volume Incentive Pool as part of 

the RTH SPESG LMM Incentive 

Program is reasonably designed to 

continue to encourage LMMs appointed 

to the incentive program to provide 

significant liquidity in SPESG options 

during RTH. The Exchange notes that 

the MRUT LMM Incentive Program also 

offers a volume incentive pool 

structured in a substantially similar 

manner. 

The Exchange believes that it is 

reasonable to amend the number of days 

to expiration that comprise certain 

expiry categories in the MSCI LMM 

Incentive Programs as this update is 

reasonably designed to make it easier for 

the LMMs appointed to the incentive 

program to satisfy the heightened 

quoting standards for options expiring a 

certain number of days out, by better 

aligning the applicable category of 

heightened quoting standards with the 

level of demand for MSCI options that 

expire in less than a week versus a week 

or more out. 

The Exchange believes that it is 

reasonable to amend the monthly rebate 

amounts applicable to the MRUT and 

RTH SPESG LMM Incentive Programs. 

The Exchange believes that the 

proposed increased rebate amounts are 

reasonably designed to continue to 

incentivize an appointed LMM to meet 

the applicable quoting standards for 

MRUT and SPESG options, thereby 

providing liquid and active markets, 

which facilitates tighter spreads, 

increased trading opportunities, and 

overall enhanced market quality to the 

benefit of all market participants. The 

Exchange believes that the proposed 

rule change to eliminate the 

compensation pool structure in the RTH 

SPESG LMM Incentive Program and 

replace it with a flat-rate rebate 

structure is reasonable because it is 

consistent with the flat-rate rebate 

structure currently applicable to each of 

the other LMM Incentive Programs. The 

Exchange further believes that the 

proposed rule change to amend the 

rebate amount received for MRUT 

($25,000) and SPESG options ($20,000) 

is reasonable because it is comparable to 

the rebates offered by other LMM 

Incentive Programs. For example, the 

MSCI LMM Program currently offers 

$20,000 per each class (MXEF and 

MXEA) in which the heightened quoting 

standards are met in a given month and 

the GTH VIX/VIXW LMM Incentive 

Program offers $15,000 for VIX options 

in which the quoting standards are met 

in VIX options a given month. 

The Exchange believes that the 

proposed changes to the LMM Incentive 

Programs are equitable and not unfairly 

discriminatory. The Exchange believes 

that it is equitable and not unfairly 

discriminatory to amend certain quoting 

widths and sizes in the MRUT and 

MSCI LMM Incentive Program, to adopt 

a volume incentive pool for the RTH 

SPESG LMM Incentive Program and to 

update the number of days to expiration 

for certain expiry categories in the MSCI 

LMM Incentive Program because such 

quote widths and sizes, volume pool 

program and expiry categories will 

equally apply to any and all TPHs with 

LMM appointments to the MRUT, MSCI 

and RTH SPESG LMM Incentive 

Programs, as applicable, that seek to 

meet the programs’ heightened quoting 

standards in order to receive the rebates 

offered (both current and proposed, as 

applicable) under each respective 

program. The Exchange believes the 

proposed rebates applicable to the 

MRUT and RTH SPESG LMM Incentive 

Programs are equitable and not unfairly 

discriminatory because they, too, will 

equally apply to any TPH that is 

appointed as an LMM to the MRUT and 

RTH SPESG LMM Incentive Programs. 

Additionally, if an LMM appointed to 

any of the LMM Incentive Programs 

does not satisfy the corresponding 

heightened quoting standard for any 

given month, then it simply will not 

receive the rebate offered by the 

respective program for that month. 

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 believes the proposed 

rule change does impose any burden on 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Particularly, 

the proposed changes to existing LMM 

Incentive Programs will apply to all 

LMMs appointed to the applicable 

program classes (i.e., MRUT, MXEF, 

MXEA and SPESG) in a uniform 

manner. To the extent these LMMs 

appointed to an incentive program 

receive a benefit that other market 

participants do not, as stated, these 

LMMs in their role as Mark-Makers on 

the Exchange have different obligations 

and are held to different standards. For 

example, Market-Makers play a crucial 

role in providing active and liquid 

markets in their appointed products, 

thereby providing a robust market 

which benefits all market participants. 

Such Market-Makers also have 

obligations and regulatory requirements 

that other participants do not have. The 

Exchange also notes that an LMM 

appointed to an incentive program may 

undertake added costs each month to 

satisfy that heightened quoting 

standards (e.g., having to purchase 

additional logical connectivity). The 

Exchange also notes that the incentive 

programs are designed to attract 

additional order flow to the Exchange, 

wherein greater liquidity benefits all 

market participants by providing more 

trading opportunities, tighter spreads, 

and added market transparency and 

price discovery, and signals to other 

market participants to direct their order 

flow to those markets, thereby 

contributing to robust levels of liquidity. 

The Exchange believes the proposed 

rule change does not impose any burden 

on intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act as the LMM 

Incentive Programs apply only to 

transactions in products exclusively 

listed on Cboe Options. Additionally, as 

noted above, the incentive programs are 

designed to attract additional order flow 

to the Exchange, wherein greater 

liquidity benefits all market participants 

by providing more trading 

opportunities, tighter spreads, and 

added market transparency and price 

discovery, and signals to other market 

participants to direct their order flow to 

those markets, thereby contributing to 

robust levels of liquidity. The Exchange 

notes it operates in a highly competitive 

market. In addition to Cboe Options, 

TPHs have numerous alternative venues 

that they may participate on and 

director their order flow, including 15 

other options exchanges, as well as offexchange venues, where competitive 

products are available for trading. Based 

on publicly available information, no 

single options exchange has more than 

15% of the market share of executed 

volume of options trades.14 Therefore, 

no exchange possesses significant 

pricing power in the execution of option 

order flow. Moreover, the Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 51431 

15See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

16NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca–2006–21)). 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f). 19 17 CFR 200.30–3(a)(12). 

and, also, recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 15 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . . .’’.16 Accordingly, the 

Exchange does not believe its proposed 

changes to the incentive programs 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

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 17 and paragraph (f) of Rule 

19b–4 18 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 

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– 

CBOE–2021–050 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–2021–050. 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–CBOE–2021–050 and 

should be submitted on or before 

October 6, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19860 Filed 9–14–21; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #17163 and #17164; 

New York Disaster Number NY–00206] 

Administrative Declaration of a 

Disaster for the State of New York 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of New York dated 09/09/ 

2021. 

Incident: Severe Storms and Flooding. 

Incident Period: 07/16/2021 through 

07/19/2021. 

DATES: Issued on 09/09/2021. 

Physical Loan Application Deadline 

Date: 11/08/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/09/2022. 

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 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed 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: Otsego. 

Contiguous Counties: 

New York: Chenango, Delaware, 

Herkimer, Madison, Montgomery, 

Oneida, Schoharie. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners with Credit Available Elsewhere ...................... 3.250 

Homeowners without Credit 

Available Elsewhere .............. 1.625 

Businesses with Credit Available Elsewhere ...................... 5.760 

Businesses without Credit 

Available Elsewhere .............. 2.880 


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