Document ID: SEC-2020-1960-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Cboe Exchange, Inc.
Posted Date: 2020-12-11T05:00Z

[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 80207-80211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27202]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90583; File No. SR-CBOE-2020-112]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
To Adopt Temporary Rules To Extend the Time by Which Trading Permit 
Holders must Complete Their Office Inspections for the Calendar Year 
2020 and To Provide Temporary Remote Inspection Relief for Their Office 
Inspections for Calendar Years 2020 and 2021

December 7, 2020.
    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 November 30, 2020, 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 
Exchange filed the proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 
19b-4(f)(6) thereunder.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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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 adopt temporary Rules to extend the time by which Trading Permit 
Holders must complete their office inspections for the calendar year 
2020 and to provide temporary remote inspection relief for their office 
inspections for calendar years 2020 and 2021. 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 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
    In light of the operational challenges that Trading Permit Holders 
are facing due to the outbreak of the coronavirus disease (COVID-19), 
the Exchange proposes to extend the time by which Trading Permit 
Holders must complete their calendar year 2020 inspection obligations 
under Rule 8.6(f) (Office Inspections) and Rule 9.2(d) (Annual Branch 
Inspections) to March 31, 2021,\5\ and to provide Trading Permit 
Holders with the option to complete their calendar year 2020 and 
calendar year 2021 inspection obligations under Rules 8.16(f) and 
9.2(d) remotely, without an on-site visit to the office or location.\6\
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    \5\ The proposed rule change will automatically sunset on March 
31, 2021. If the Exchange seeks to provide additional temporary 
relief from the rule requirement identified in this proposal beyond 
March 31, 2021, it will submit a separate rule filing to further 
extend the temporary extension of time.
    \6\ The proposed rule change will automatically sunset on 
December 31, 2021. If the Exchange seeks to extend the duration of 
the temporary proposed rule beyond December 31, 2021, it will submit 
a separate rule filing to further renew the temporary relief. The 
Exchange notes that SEC staff has stated in guidance that 
inspections must include a physical, on-site review component. See 
SEC National Examination Risk Alert, Volume I, Issue 2 (November 30, 
2011); SEC Division of Market Regulation, Staff Legal Bulletin No. 
17: Remote Office Supervision (March 19, 2004) (stating, in part, 
that broker-dealers that conduct business through geographically 
dispersed offices have not adequately discharged their supervisory 
obligations where there are no on-site routine or ``for cause'' 
inspections of those offices).
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    The Exchange has observed the impact of the COVID-19 pandemic on 
its Trading Permit Holders, investors, and the industry generally and 
recognizes that Trading Permit Holders are experiencing operational 
challenges with much of their personnel working from home due to stay-
at-home orders, restrictions on businesses and social activity imposed 
in various states, and adherence to other social distancing guidelines 
consistent with the recommendations of public health officials.\7\ In 
response, like many employers across the United States, Trading Permit 
Holder organizations

[[Page 80208]]

closed their offices to the public, transitioned their employees to 
telework arrangements to comply with stay-at-home orders, and 
implemented other restrictive measures in an effort to slow the spread 
of COVID-19, such as curtailing or eliminating non-essential business 
travel and significantly limiting or canceling in-person activities.\8\
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    \7\ See Centers for Disease Control and Prevention (``CDC''), 
International Classification of Diseases, Tenth Revision, Clinical 
Modification, https://www.cdc.gov/nchs/data/icd/Announcement-New-ICD-code-forcoronavirus-3-18-2020.pdf; WHO Director-General, Opening 
Remarks at the Media Briefing on COVID-19 (March 11, 2020), https://www.who.int/dg/speeches/detail/who-director-general-s-opening-remarksat-the-media-briefing-on-covid-19-11-march-2020; and Centers 
for Disease Control and Prevention, How to Protect Yourself & Others 
(last visited November 12, 2020) https://www.cdc.gov/coronavirus/2019-ncov/prevent-gettingsick/prevention.html.
    \8\ See e.g., FINRA Regulatory Notice 20-16 (May 2020) (``Notice 
20-16'') (describing practices implemented by small, mid-sized and 
large firms to transition to, and supervise in, remote work 
environment during the COVID-19 pandemic).
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    Exchange Rules require Trading Permit Holders \9\ to conduct branch 
\10\ and non-branch office and location inspections pursuant to certain 
annual cycles. Specifically, pursuant to Rule 8.16(f), each Trading 
Permit Holder shall inspect every office or location of the Trading 
Permit Holder at least once every three calendar years, the cycle of 
which is contingent on the nature and complexity of the securities 
activities for which the office or location is responsible, the volume 
of business done, and the number of associated persons at each office 
or location. The examination schedule and an explanation of the factors 
considered in determining the frequency of the examinations in the 
cycle shall be set forth in the Trading Permit Holder's written 
supervisory procedures. Such inspection shall be reasonably designed to 
assist in preventing and detecting violations of, and achieving 
compliance with, applicable securities laws and regulations, and with 
applicable Exchange rules, and each Trading Permit Holder shall retain 
a written record of the dates upon which each inspection is conducted, 
the participants in the inspection, and the results thereof. Pursuant 
to Rule 9.2(d), each branch office that supervises one or more non-
branch locations must be inspected no less often than once each 
calendar year, unless it qualifies for certain exemptions.\11\ Every 
branch office, without exception, must be inspected at least once every 
three calendar-years. Trading Permit Holders must maintain written 
reports of such inspections.
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    \9\ The Exchange notes that the term Trading Permit Holder 
includes Trading Permit Holder organizations. See Eleventh Amended 
and Restated Bylaws of Cboe Exchange, Inc., Section 1.1(f).
    \10\ The Exchange notes that any location that is responsible 
for supervising the activities of persons associated with a Trading 
Permit Holder or TPH organization at one or more non-branch 
locations of such Trading Permit Holder or TPH organization is 
considered to be a branch office. See Rule 3.40(c).
    \11\ A Trading Permit Holder may demonstrate to the satisfaction 
of the Exchange that because of proximity, special reporting or 
supervisory practice, other arrangements may satisfy this Rule's 
requirements for a particular branch office, or that, based upon the 
written policies and procedures of such Trading Permit Holder 
organization providing for a systematic risk-based surveillance 
system, the Trading Permit Holder organization submits a proposal to 
the Exchange and receives, in writing, an exemption from the 
requirement in 9.2(d), pursuant to Rule 9.2(e).
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    As a result of the compelling health and welfare concerns stemming 
from the COVID-19 pandemic, Trading Permit Holders are facing 
potentially significant disruptions to their normal business operations 
that include staff absenteeism, the increased use of remote offices or 
telework arrangements, travel or transportation limitations, and 
technology interruptions or slowdowns. Pandemic-related operational 
changes have made it impracticable for Trading Permit Holders to 
conduct the on-site inspections pursuant to Rules 8.16(f) and 9.2(d) at 
many or most locations for calendar year 2020 because this compliance 
function requires firm employees to travel to geographically dispersed 
branch and non-branch office locations. Such travel not only has been 
restricted by government orders,\12\ but also puts the health and 
safety of employees at great risk of contracting and spreading COVID-
19.\13\ By mid-year, with many restrictive measures still in place, and 
in some instances additional quarantine requirements imposed on 
interstate travel, on-site inspections of Trading Permit Holder offices 
or locations scheduled for calendar year 2020 remain pending. The acute 
health and safety concerns related to COVID-19 persist, with the number 
of confirmed cases of COVID-19 in the U.S. continuing to rise through 
the fall of 2020.\14\ While Trading Permit Holders have continued to 
supervise all offices and locations by, among other things, 
implementing remote supervisory practices through novel uses of 
technology as well as existing methods of supervision (e.g., 
supervisory checklists, surveillance tools, incident trackers, email 
review, and trade exception reports),\15\ they are still experiencing 
logistical challenges related to conducting the onsite portion of their 
inspections due to continuing business and governmental restrictions 
and public health concerns.\16\ As a result, the Exchange understands 
that Trading Permit Holders have not yet been able to conduct on-site 
inspections scheduled for calendar year 2020, and, with no certainty as 
to when pandemic-related health concerns will subside and restrictions 
recently re-implemented in light of the resurgence of cases during the 
fall of 2020,\17\ Trading Permit Holders may have a considerable 
backlog of 2020 inspections that may be difficult, if not impossible, 
to overcome on or before calendar year 2020 ends. Additionally, the 
Exchange recognizes that planning on-site inspections for calendar year 
2021 for Trading Permit Holder branch and non-branch offices and 
locations in the current environment may be impacted as well. In light 
of pandemic-related developments and the approaching end of calendar 
year 2020, the Exchange believes it is appropriate to provide tailored 
temporary relief for Trading Permit Holders to meet their inspection 
obligations under Rule 8.16(f) and Rule 9.2(d) for calendar years 2020 
and 2021.
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    \12\ See e.g., City of Chicago, Emergency Travel Order (November 
10, 2020) https://www.chicago.gov/city/en/sites/covid-19/home/emergency-travel-order.html (announcing certain travel restrictions 
applicable to different states based on the status of the outbreak 
in the states and how the data compares to the situation in 
Chicago); New York Department of Health, Interim Guidance for 
Quarantine Restrictions on Travelers Arriving in New York State 
Following Out of State Travel (November 3, 2020).
    \13\ See CDC, Travel During the COVID-19 Pandemic (updated 
October 21, 2020) https://www.cdc.gov/coronavirus/2019-ncov/travelers/travel-during-covid19.html (stating, in part, ``[t]ravel 
increases your chance of getting and spreading COVID-19. Staying 
home is the best way to protect yourself and others from COVID-
19'').
    \14\ See CDC, COVIDView, Key Updates for Week 44, ending October 
31, 2020 (November 5, 2020) https://www.cdc.gov/coronavirus/2019-ncov/covid-data/pdf/covidview-11-06-2020.pdf (stating that 
surveillance indicators tracking levels of SARS-CoV-2 virus 
circulation and associated illnesses have been increasing since 
September).
    \15\ See supra note 8.
    \16\ See supra note 12.
    \17\ See supra note 14.
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    Specifically, the Exchange proposes to adopt temporary language in 
Rule 8.16(f), and to adopt temporary Rule 9.2(d)(4), to provide that 
each Trading Permit Holder obligated to complete an office inspection 
pursuant to Rule 8.16(f) and Rule 9.2(d), respectively, in calendar 
year 2020 will be deemed to have satisfied such obligation if the 
applicable inspection is completed on or before March 31, 2021. The 
Exchange believes that this proposed temporary extension of time is 
tailored to address the needs and constraints on a Trading Permit 
Holder's operations during the COVID-19 pandemic, without significantly 
compromising critical investor protection, as potential risks that may 
arise from providing firms additional time to comply with their 
inspection obligations due in calendar year 2020 are mitigated by their 
ongoing supervisory obligations, off-site monitoring, and the temporary 
nature of the extension. The proposed extension will provide Trading 
Permit Holders with an opportunity to better manage the operational 
challenges resulting from the COVID-19 pandemic and the

[[Page 80209]]

resources needed to fulfill these supervisory obligations during the 
pandemic.
    In addition to this, the Exchange proposes to extend temporary 
remote inspection relief for calendar year 2020 and 2021. In 
particular, the Exchange proposes to adopt temporary Rule 9.2(d)(5), 
which provides that each Trading Permit Holder obligated to conduct an 
inspection of a branch office or non-branch location in calendar year 
2020 and calendar year 2021 pursuant to Rule 8.16(f) \18\ and Rule 
9.2(d), as applicable, may, subject to the requirements of this Rule 
9.2.(d)(5), satisfy such obligation by conducting the applicable 
inspection remotely, without an on-site visit to the office or 
location. In accordance with Rules 8.16(f) and 9.2(d)(4), inspections 
for calendar year 2020 must be completed on or before March 31, 2021. 
Inspections for calendar year 2021 must be completed on or before 
December 31, 2021. Notwithstanding proposed Rule 9.2(d)(5), a Trading 
Permit Holder remains subject to the other requirements of Rules 
8.16(f) and 9.2(d).
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    \18\ The proposed rule change adds language to Rule 8.16(f), 
which provides that the temporary remote inspection relief provided 
in Rule 9.2(d)(5) will apply to each Trading Permit Holder obligated 
to complete an office inspection pursuant to Rule 8.16(f) in 
calendar year 2020 or calendar year 2021.
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    The proposed rule change also adopts written supervisory procedures 
for remote inspections in proposed Rule 9.2(d)(5)(A), which provides 
that, consistent with a Trading Permit Holder's obligations under Rule 
8.16(f) and Rule 9.2(d), a Trading Permit Holder that elects to conduct 
each of its calendar year 2020 or calendar year 2021 inspections 
remotely must amend or supplement its written supervisory procedures to 
provide for remote inspections that are reasonably designed to assist 
in detecting and preventing violations of and achieving compliance with 
applicable securities laws and regulations, and with applicable 
Exchange Rules. Reasonably designed procedures for conducting remote 
inspections of offices or locations should include, among other things: 
(i) A description of the methodology, including technologies permitted 
by the Trading Permit Holder, that may be used to conduct remote 
inspections; and (ii) the use of other risk-based systems employed 
generally by the Trading Permit Holder to identify and prioritize for 
review those areas that pose the greatest risk of potential violations 
of applicable securities laws and regulations, and of applicable 
Exchange Rules. The Exchange believes the proposed rule change is 
consistent with a Trading Permit Holder's existing supervisory 
obligations to establish and maintain written supervisory procedures 
for branch office reviews \19\ and reviews of non-branch offices and 
locations.\20\
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    \19\ See Rule 3.40(f).
    \20\ See Rule 8.16(e).
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    Proposed temporary Rule 9.2(d)(5)(B) provides that the requirement 
to conduct inspections of offices and locations is one part of a 
Trading Permit Holder's overall obligation to have an effective 
supervisory system and, therefore, a Trading Permit Holder must 
continue with its ongoing review of the activities and functions 
occurring at all offices and locations, whether or not the Trading 
Permit Holder conducts inspections remotely. A Trading Permit Holder's 
use of a remote inspection of an office or location will be held to the 
same standards for review as set forth under Rule 8.16(f) and Rule 
9.2(d). Where a Trading Permit Holder's remote inspection of an office 
or location identifies any indicators of irregularities or misconduct 
(i.e., ``red flags''), \21\ the Trading Permit Holder may need to 
impose additional supervisory procedures for that office or location or 
may need to provide for more frequent monitoring or oversight of that 
office or location, or both, including potentially a subsequent 
physical, on-site visit on an announced or unannounced basis when the 
Trading Permit Holder's operational difficulties associated with COVID-
19 abate, nationally or locally as relevant, and the challenges a 
Trading Permit Holder is facing in light of the public health and 
safety concerns make such on-site visits feasible using reasonable best 
efforts. The temporary relief provided by this Rule 9.2(d)(5) does not 
extend to a Trading Permit Holder's inspection requirements beyond 
calendar year 2021 and such inspections must be conducted in compliance 
with Rule 9.2(d)(1) through (3). The Exchange believes that the 
proposed rule is consistent with a Trading Permit Holder's existing 
supervisory obligations to maintain policies and procedures, and a 
system for applying such procedures, reasonably designed to achieve 
compliance with, as well as assist in preventing and detecting 
violations of, applicable securities laws and regulations and Exchange 
Rules.\22\
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    \21\ Red flags that suggest the increased risk or occurrence of 
violations may include, among other events: customer complaints; an 
unexplained increase or change in the types of investments or 
trading concentration that a representative is recommending or 
trading; an unexpected improvement in a representative's production, 
lifestyle, or wealth; questionable or frequent transfers of cash or 
securities between customer or third party accounts, or to or from 
the representative; a representative that serves as a power of 
attorney, trustee or in a similar capacity for a customer or has 
discretionary control over a customer's account(s); representative 
with disciplinary records; customer investments in one or a few 
securities or class of securities that is inconsistent with firm 
policies related to such investments; churning; trading that is 
inconsistent with customer objectives; numerous trade corrections, 
extensions, liquidations; or significant switching activity of 
mutual funds or variable products held for short time periods. See 
generally SEC Division of Market Regulation, Staff Legal Bulletin 
17: Remote Office Supervision (March 19, 2004).
    \22\ See generally Rule 8.16; and see Rule 9.2(g)(5)(A).
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    Finally, proposed temporary Rule 9.2(d)(5)(C) provides for a 
documentation requirement and specifically provides that a Trading 
Permit Holder must maintain and preserve a centralized record for each 
of calendar year 2020 and calendar year 2021 that separately 
identifies: (i) All offices or locations that had inspections that were 
conducted remotely; and (ii) any offices or locations for which the 
Trading Permit Holder determined to impose additional supervisory 
procedures or more frequent monitoring, as provided in Rule 
9.2(d)(5)(B) above. A Trading Permit Holder's documentation of the 
results of a remote inspection for an office or location must identify 
any additional supervisory procedures or more frequent monitoring for 
that office or location that were imposed as a result of the remote 
inspection. The Exchange believes that this documentation requirement 
would help readily distinguish the offices and locations that underwent 
remote inspections and their attendant supervisory procedures, and 
their more frequent monitoring, as applicable.
    As noted above, even in the current environment, Trading Permit 
Holders have an ongoing obligation to establish and maintain a system 
to supervise the activities of their associated persons that is 
reasonably designed to achieve compliance with applicable securities 
laws and regulations, and with applicable Exchange Rules. The proposed 
amendments to Rule 8.16(f) and proposed Rule 9.2(d)(4) and (d)(5) are 
not intended to lessen the supervisory obligations prescribed under the 
Exchange Rules. The Exchange believes that the proposed temporary rule 
changes, which address the needs and constraints on a Trading Permit 
Holder's operations during the COVID-19 pandemic by extending the time 
to conduct inspections for calendar year 2020 and permitting firms to 
remotely inspect, subject to specified requirements described above, 
their

[[Page 80210]]

offices and locations for calendar years 2020 and 2021, would provide 
Trading Permit Holders a way to comply with Rules 8.16(f) and 9.2(d) 
that would not materially diminish, and is reasonably designed to 
achieve, the investor protection objectives of the inspection 
requirements under these unique circumstances. The Exchange notes that 
potential risks that may arise from providing Trading Permit Holders 
extended time to conduct their 2020 inspections and the option to 
conduct their inspections remotely are mitigated by their use of 
technology to meet their supervisory obligations on an ongoing basis, 
the unique circumstances under which they are operating, and the 
temporary nature of the proposed rules, which would expire on March 31, 
2021 and December 31, 2021, respectively.\23\
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    \23\ See supra notes 5 and 6.
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    The Exchange notes that the proposed temporary rules are 
substantively identical to the temporary inspection extension and 
remote relief rules recently filed by the Financial Industry Regulatory 
Authority (``FINRA'').\24\ The Exchange notes too that it will continue 
to monitor the situation and engage with Trading Permit Holders, other 
financial regulators, and governmental authorities to determine whether 
further regulatory relief or guidance related to Rules 8.16 and 9.2 may 
be appropriate.
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    \24\ See FINRA Rule 3110.16; Securities and Exchange Act Release 
No. 89188 (June 30, 2020), 85 FR 40713 (July 7, 2020) (SR-FINRA-
2020-019); and SR-FINRA-2020-040 (filed November 6, 2020) available 
at https://www.finra.org/sites/default/files/2020-11/SR-FINRA-2020-040.pdf.
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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.\25\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \26\ 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) \27\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \25\ 15 U.S.C. 78f(b).
    \26\ 15 U.S.C. 78f(b)(5).
    \27\ Id.
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    In particular, the Exchange believes that, in light of the impact 
of COVID-19 on the performance of on-site office and location 
inspections pursuant to Rules 8.16(f) and 9.2(d), the proposed 
temporary rule changes are intended to provide Trading Permit Holders 
additional time to comply with their Rule 8.16(f) and 9.2(d) inspection 
obligations due in calendar year 2020 and a temporary regulatory option 
to conduct inspections of offices and locations remotely for calendar 
years 2020 and 2021. The proposed temporary rule changes do not relieve 
firms from meeting their existing regulatory obligations to establish 
and maintain a supervisory system that is reasonably designed to 
achieve compliance with applicable securities laws and regulations, and 
with applicable Exchange Rules, which directly serve investor 
protection. In a time when faced with unique challenges resulting from 
the COVID-19 pandemic, the Exchange believes that the proposed 
temporary rule changes provide appropriately tailored relief that will 
afford Trading Permit Holders the ability to observe the 
recommendations of public health officials to provide for the health 
and safety of their personnel, while continuing to serve and promote 
the protection of investors and the public interest.

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 the proposed temporary rule changes will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the Act, because the extension for inspections and the 
remote inspection relief will apply equally to all Trading Permit 
Holders required to conduct office and location inspections in calendar 
year 2020 and 2021. The Exchange further does not believe that the 
proposed temporary rule changes will impose any burden on intermarket 
competition because it relates only to the extension of time for 2020 
inspections and the manner in which inspections for 2020 and 2021 may 
be conducted. Additionally, and as stated above, FINRA has recently 
submitted filings to adopt substantively identical temporary inspection 
relief rules for its members.

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:
    A. Significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. 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 \28\ and 
Rule 19b-4(f)(6) \29\ 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.
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    \28\ 15 U.S.C. 78s(b)(3)(A).
    \29\ 17 CFR 240.19b-4(f)(6).
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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-2020-112 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-2020-112. This file

[[Page 80211]]

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-CBOE-2020-112 and should be 
submitted on or before January 4, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\30\
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    \30\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-27202 Filed 12-10-20; 8:45 am]
BILLING CODE 8011-01-P