51406 Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 240.19b–4(f)(6)(iii). 

16See supra Item II. 

17See FINRA Filing, 86 FR at 47171 (noting the 

same in granting FINRA’s request to waive the 30- 

day operative delay so that SR–FINRA–2021–019 

would become operative immediately upon filing). 

18See supra note 6. 

19See supra note 4. As noted above, the Exchange 

states that if it requires temporary relief from the 

rule requirements identified in this proposal 

beyond December 31, 2021, it may submit a 

separate rule filing to extend the effectiveness of the 

temporary relief under these rules. 

20For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

21 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A)(iii). 

5 17 CFR 240.19b–4(f)(6). 

A proposed rule change filed under 

Rule 19b–4(f)(6) 14 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),15 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange has indicated that 

the proposed rule change to extend the 

expiration date will continue to prevent 

unnecessary impediments to its 

operations, including its critical 

adjudicatory processes, and its ability to 

fulfill its statutory obligations to protect 

investors and maintain fair and orderly 

markets that would otherwise result if 

the temporary amendments were to 

expire on August 31, 2021.16

Importantly, extending the relief 

provided in SR–Phlx–2020–53 

immediately upon filing and without a 

30-day operative delay will allow the 

Exchange to continue critical 

adjudicatory and review processes in a 

reasonable and fair manner and meet its 

critical investor protection goals, while 

also following best practices with 

respect to the health and safety of its 

employees.17 The Commission also 

notes that this proposal extends without 

change the temporary relief previously 

provided by SR–Phlx–2020–53.18 As 

proposed, the changes would be in 

place through December 31, 2021 and 

the amended rules will revert back to 

their original state at the conclusion of 

the temporary relief period and, if 

applicable, any extension thereof.19 For 

these reasons, the Commission believes 

that waiver of the 30-day operative 

delay for this proposal is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative upon filing.20

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

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– 

Phlx–2021–49 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–2021–49. 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. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2021–49 and should be submitted on or 

before October 6, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19851 Filed 9–14–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92912; File No. SR–CBOE– 

2021–051] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 5.52 in 

Connection With the Minimum Initial 

Quote Size Requirement for MarketMakers 

September 9, 2021. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

September 2, 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 4 and Rule 19b–4(f)(6) 

thereunder.5 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 

Rule 5.52 in connection with the 

minimum initial quote size requirement 

for Market-Makers. 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/ 


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Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 51407 

6Pursuant to Rule 5.52, a Market Maker’s quotes 

must be firm, two-sided bids (offers) that meet the 

applicable minimum initial quote size requirement. 

7Currently, the Exchange has an initial minimum 

quote size in place for SPX during Regular Trading 

Hours (‘‘RTH’’). See Regulatory Circular 20–025, 

Reinstatement of Minimum Intraday Electronic 

Quote Size in SPX (April 2, 2020) available at 

https://cdn.cboe.com/resources/regulation/ 

circulars/regulatory/RC20-025-Reinstatement-ofMinimum-Intraday-Electronic-Quote-Size-inSPX.pdf. The minimum size for all other classes is 

the default size of one contract. 

8See e.g., Rule 5.66(a), which provides that 

Trading Permit Holders shall not effect TradeThroughs, however, Rule 5.32(c) provides that the 

System cancels or rejects an order that would trade 

through a Protected Quotation (if not otherwise 

eligible for routing or the price-adjust process); and 

Rule 5.34(c)(3), which provides that the System 

cancels or rejects an incoming order or quote with 

a size that exceeds the maximum contract size 

(which the Exchange determines). 

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

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

11 Id. 

12See supra note 7. 

13 15 U.S.C. 78f(b)(1). 

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 

Rule 5.52(b) to systematically reject 

Market-Maker quotes that do not meet 

the minimum initial quote size 

requirement determined by the 

Exchange. 

Rule 5.52 governs Market-Maker 

quoting obligations on the Exchange. 

Specifically, Rule 5.52(b) provides that 

a Market-Maker’s bid (offer) 6 for a series 

must be accompanied by the minimum 

number of contracts determined by the 

Exchange on a class-by-class basis, the 

minimum of which will be one contract 

at the price of the bid (offer) the MarketMaker is willing to buy (sell). The 

proposed rule change updates Rule 

5.52(b) to provide that the System 

rejects a Market-Maker’s bid (offer) that 

does not meet the minimum initial 

quote size determined by the Exchange 

for that class. Currently, the Exchange’s 

Regulatory Division conducts 

surveillances to review for and enforce 

Market-Maker compliance with the 

minimum initial quote size 

requirements.7 By allowing the System 

to automatically reject Market-Maker 

quotes that do not meet the applicable 

minimum initial quote requirements for 

that class, the proposed rule change is 

designed to reduce a regulatory 

surveillance burden on the Exchange in 

having to manually surveil for and 

enforce Market-Maker compliance with 

the minimum initial quote size 

requirements, thereby allowing the 

Exchange to reallocate regulatory 

resources to other regulatory processes. 

The proposed rule change will also 

serve as an additional risk control for 

Market-Makers quoting on the Exchange 

by reducing the compliance risk 

associated with inadvertently 

submitting a bid (offer) that does not 

meet the minimum initial quote size 

requirement for that class. The 

Exchange notes, too, that other 

Exchange Rules provide for 

systematically enforced compliance 

with certain trading rules and 

requirements, including order size 

requirements.8

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.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. 

The Exchange believes that, by having 

the System automatically reject MarketMaker quotes that do not meet the 

applicable minimum initial quote size 

requirement in a class, the proposed 

rule change will remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, will protect 

investors. In particular, the Exchange 

believes that the proposed rule change 

will reduce a surveillance burden on the 

Exchange in having to manually surveil 

for and enforce Market-Maker 

compliance with the minimum initial 

quote size requirements, thereby 

allowing the Exchange to reallocate 

regulatory resources into other 

regulatory functions. Additionally, the 

proposed rule change will benefit 

market participants by serving as an 

additional risk control for MarketMakers quoting on the Exchange and 

reducing the compliance risk associated 

with inadvertently submitting a bid 

(offer) that does not meet the minimum 

initial quote size requirement in that 

class. The proposed rule change does 

not present any new or novel issues or 

System functionality as other Exchange 

Rules provide for systematically 

enforced compliance with certain 

trading rules and requirements, 

including order size requirements.12

The Exchange also believes the 

proposed rule change is consistent with 

Section 6(b)(1) of the Act,13 which 

provides that the Exchange be organized 

and have the capacity to be able to carry 

out the purposes of the Act and to 

enforce compliance by the Exchange’s 

Trading Permit Holders and persons 

associated with its Trading Permit 

Holders with the Act, the rules and 

regulations thereunder, and the rules of 

the Exchange, as the System will 

automatically enforce the minimum 

initial quote size requirement for 

Market-Makers. 

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 does not believe that the 

proposed rule change is competitive in 

nature, but rather is designed to 

enhance the Exchange’s enforcement of 

Exchange Rules. The proposed rule 

change is not adding or amending a 

Market-Maker quoting obligation; rather, 

it is merely automating surveillance of 

an existing obligation. The Exchange 

does not believe that the proposed rule 

change will impose any burden on 


khammond on DSKJM1Z7X2PROD with NOTICES
51408 Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 

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

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 satisfied this requirement. 16 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(3)(A)(iii). 

5 17 CFR 240.19b–4(f)(6). 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because it 

will apply equally to all Market-Maker 

quotes that do not meet the applicable 

minimum initial quote size requirement 

for a class. 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 it is related 

to compliance with quoting 

requirements that are applicable only to 

Market-Makers on the Exchange. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 14 and Rule 19b– 

4(f)(6) thereunder.15 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–2021–051 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–2021–051. 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–2021–051, and 

should be submitted on or before 

October 6, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19857 Filed 9–14–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92913; File No. SR–CBOE– 

2021–052] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 5.32 in 

Connection With Participation 

Entitlements 

September 9, 2021. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

September 2, 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 4 and Rule 19b–4(f)(6) 

thereunder.5 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 

Rule 5.32 in connection with 

participation entitlements. 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, 

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 


khammond on DSKJM1Z7X2PROD with NOTICES