51404 Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4 If the Exchange seeks to provide additional 

temporary relief from the rule requirements 

identified in this proposed rule change beyond 

December 31, 2021, the Exchange will submit a 

separate rule filing to further extend the temporary 

extension of time. The amended Exchange rules 

will revert to their original form at the conclusion 

of the temporary relief period and any extension 

thereof. 

5See Securities Exchange Act Release No. 92685 

(August 17, 2021), No. 92685 (August 17, 2021), 86 

FR 47169 (August 23, 2021) (SR–FINRA–2021–019) 

(‘‘FINRA Filing’’). The Exchange notes that the 

FINRA Filing also proposed to temporarily amend 

FINRA Rules 9261, 9524, and 9830, which govern 

hearings in connection with appeals of disciplinary 

actions, eligibility proceedings, and temporary and 

permanent cease and desist orders. The Exchange’s 

Rules 9261, 9524, and 9830 incorporate by 

reference The Nasdaq Stock Market LLC rules, 

which are the subject of a separate filing. See SR– 

NASDAQ–2021–067 (August 30, 2021). Therefore, 

the Exchange is not proposing to adopt that aspect 

of the FINRA Filing. 

6See Securities Exchange Act Release No. 91766 

(May 4, 2021), 86 FR 25014 (May 10, 2021) (Notice 

of Filing and Immediate Effectiveness of File No. 

SR–Phlx–2021–027); see also Securities Exchange 

Act Release No. 90758 (December 21, 2020), 85 FR 

85782 (December 29, 2020) (Notice of Filing and 

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– 

CboeEDGX–2021–037 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–CboeEDGX–2021–037. 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–CboeEDGX–2021–037 and 

should be submitted on or before 

October 6, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–19859 Filed 9–14–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92906; File No. SR–Phlx– 

2021–49] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Expiration 

Date of the Temporary Amendments 

Concerning Video Conference 

Hearings 

September 9, 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 August 

31, 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 Exchange has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. 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 extend the 

expiration date of the temporary 

amendments in SR–Phlx–2020–53 from 

August 31, 2021, to December 31, 2021.4

The proposed rule change would not 

make any changes to the text of the 

Exchange rules. 

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 continue to 

harmonize Exchange Rule General 3, 

Section 16 with recent changes by the 

Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) to its Rule 

1015 in response to the COVID–19 

global health crisis and the 

corresponding need to restrict in-person 

activities.5 The Exchange originally 

filed proposed rule change SR–Phlx– 

2020–53, which allows the Exchange 

Review Council (‘‘ERC’’) to conduct 

hearings in connection with appeals of 

Membership Application Program 

decisions, on a temporary basis, by 

video conference, if warranted by the 

current COVID–19-related public health 

risks posed by an in-person hearing. In 

April 2021, the Exchange filed a 

proposed rule change, SR–Phlx–2021– 

027, to extend the expiration date of the 

temporary amendments in SR–Phlx– 

2020–53 from April 30, 2021, to August 

31, 2021.6 While there are signs of 


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Federal Register / Vol. 86, No. 176 / Wednesday, September 15, 2021 / Notices 51405 

Immediate Effectiveness of File No. SR–Phlx–2020– 

053). 

7For example, President Joe Biden on July 29, 

2021, announced several measures to increase the 

number of people vaccinated against COVID–19 and 

to slow the spread of the Delta variant, including 

strengthening safety protocols for federal 

government employees and contractors. See https:// 

www.whitehouse.gov/briefing-room/statementsreleases/2021/07/29/fact-sheet-president-biden-toannounce-new-actions-to-get-more-americansvaccinated-and-slow-the-spread-of-the-deltavariant/. 

8For instance, the Centers for Disease Control and 

Prevention on July 27, 2021, began recommending 

that fully vaccinated people wear a mask in public 

indoor settings in areas of substantial or high 

transmission and noted that fully vaccinated people 

might choose to wear a mask regardless of the level 

of transmission, particularly if they are 

immunocompromised or at increased risk for severe 

disease from COVID–19. See https://www.cdc.gov/ 

coronavirus/2019-ncov/vaccines/fully-vaccinatedguidance.html. Also, several cities, including 

Atlanta, Baltimore, Los Angeles, New Haven and 

San Francisco, have recently reinstated their mask 

mandates. 

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

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

11See supra note 5. 

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

13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. 

improvement, much uncertainty 

remains for the coming months. The 

emergence of the Delta variant, 

dissimilar vaccination rates throughout 

the United States, and the uptick in 

transmissions in many locations 

indicate that COVID–19 remains an 

active and real public health concern.7

Based on its assessment of current 

COVID–19 conditions and the lack of a 

clear timeframe for a sustained and 

widespread abatement of COVID–19- 

related health concerns and 

corresponding restrictions,8 the 

Exchange has determined that there is a 

continued need for temporary relief for 

several months beyond August 31, 2021. 

Accordingly, the Exchange proposes to 

extend the expiration date of the 

temporary rule amendments in SR– 

Phlx–2020–53 from August 31, 2021, to 

December 31, 2021. 

As set forth in SR–Phlx–2020–53, the 

Exchange also relies on COVID–19 data 

and criteria to determine whether the 

current public health risks presented by 

an in-person hearing may warrant a 

hearing by video conference. Based on 

that data and criteria, the Exchange does 

not believe the COVID–19-related health 

concerns necessitating this relief will 

meaningfully subside by August 31, 

2021, and has determined that there will 

be a continued need for this temporary 

relief for several months beyond that 

date. Accordingly, the Exchange 

proposes to extend the expiration date 

of the temporary rule amendments 

originally set forth in SR–Phlx–2020–53 

from August 31, 2021, to December 31, 

2021. The extension of these temporary 

amendments allowing for specified ERC 

hearings to proceed by video conference 

will allow the Exchange’s critical 

adjudicatory functions to continue to 

operate effectively in these 

extraordinary circumstances—enabling 

the Exchange to fulfill its statutory 

obligations to protect investors and 

maintain fair and orderly markets— 

while also protecting the health and 

safety of hearing participants. 

The Exchange has filed the proposed 

rule change for immediate effectiveness 

and has requested that the SEC waive 

the requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, so the 

Exchange can implement the proposed 

rule change immediately. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,9 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,10

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 greater harmonization 

between the Exchange rules and FINRA 

rules of similar purpose,11 resulting in 

less burdensome and more efficient 

regulatory compliance. 

The proposed rule change, which 

extends the expiration date of the 

temporary amendments to the Exchange 

rules set forth in SR–Phlx–2020–53, will 

continue to aid the Exchange’s efforts to 

timely conduct hearings in connection 

with its core adjudicatory functions. 

Given the current and frequently 

changing COVID–19 conditions and the 

uncertainty around when those 

conditions will see meaningful, 

widespread and sustained 

improvement, without this relief 

allowing ERC hearings to continue to 

proceed by video conference, the 

Exchange might be required to postpone 

some or almost all hearings indefinitely. 

The Exchange must be able to perform 

its critical adjudicatory functions in 

order to fulfill its statutory obligations 

to protect investors and maintain fair 

and orderly markets. As such, this relief 

is essential to the Exchange’s ability to 

fulfill its statutory obligations and 

allows hearing participants to avoid the 

serious COVID–19-related health and 

safety risks associated with in-person 

hearings. 

Among other things, this relief will 

allow the ERC to timely provide 

members, disqualified individuals and 

other applicants an approval or denial 

of their applications. As set forth in 

detail in SR–Phlx–2020–53, this 

temporary relief allowing ERC hearings 

to proceed by video conference accounts 

for fair process considerations and will 

continue to provide fair process while 

avoiding the COVID–19-related public 

health risks for hearing participants. 

Accordingly, the proposed rule change 

extending this temporary relief is in the 

public interest and consistent with the 

Act’s purpose. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the temporary proposed rule change 

will impose any burden on competition 

not necessary or appropriate in 

furtherance of the purposes of the Act. 

As set forth in SR–Phlx–2020–53, the 

proposed rule change is intended solely 

to extend temporary relief necessitated 

by the continued impacts of the COVID– 

19 outbreak and the related health and 

safety risks of conducting in-person 

activities. The Exchange believes that 

the proposed rule change will 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. 

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 

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)(iii) of the Act 12 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.13


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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/ 


khammond on DSKJM1Z7X2PROD with NOTICES