30 Day Notice

Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices
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–MIAX–2020–16 and should
be submitted on or before July 14, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–13430 Filed 6–22–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–616, OMB Control No.
3235–0671]

Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.

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Extension:
Rule 613 of Regulation NMS

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
21 17

CFR 200.30–3(a)(12).

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Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
connection with a National Market
System (NMS) Plan filed with the
Commission under Rule 613 (17 CFR
242.613), under the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.).
Rule 613 of Regulation NMS (17 CFR
part 242) required national securities
exchanges and national securities
associations (‘‘Participants’’) to jointly
submit to the Commission a national
market system (‘‘NMS’’) plan to govern
the creation, implementation, and
maintenance of a consolidated audit
trail (‘‘CAT’’) and Central Repository for
the collection of information for NMS
securities. On February 27, 2015, the
Participants submitted the CAT NMS
Plan to the Commission.1 On April 27,
2016, the Commission published a
notice soliciting comments from the
public (‘‘CAT NMS Plan Notice’’).2 On
November 15, 2016, the Commission
approved the CAT NMS Plan (‘‘CAT
NMS Plan Order’’), including the
information collections proposed in the
CAT NMS Plan Notice and certain
additional information collections.3
Since November 15, 2016, the
Commission believes that three
information collection requirements
have been completed, specifically: (1) A
document outlining how the
Participants could incorporate into the
consolidated audit trail information
regarding certain products that are not
1 See Letter from Participants to Brent J. Fields,
Secretary, Commission, dated February 27, 2015.
The Participants filed the CAT NMS Plan on
September 30, 2014. See Letter from the
Participants, to Brent J. Fields, Secretary,
Commission, dated September 30, 2014. The CAT
NMS Plan filed on February 27, 2015, was an
amendment to and replacement of the Initial CAT
NMS Plan (the ‘‘Amended and Restated CAT NMS
Plan’’). On December 24, 2015, the Participants
submitted an Amendment to the Amended and
Restated CAT NMS Plan. See Letter from
Participants to Brent J. Fields, Secretary,
Commission, dated December 23, 2015 (the
‘‘Amendment’’). On February 9, 2016, the
Participants filed with the Commission an identical,
but unmarked, version of the Amended and
Restated CAT NMS Plan, dated February 27, 2015,
as modified by the Amendment, as well as a copy
of the request for proposal issued by the
Participants to solicit Bids from parties interested
in serving as the Plan Processor for the consolidated
audit trail. Unless the context otherwise requires,
the ‘‘CAT NMS Plan’’ shall refer to the Amended
and Restated CAT NMS Plan, as modified by the
Amendment.
2 See Securities Exchange Act Release No. 77724
(April 27, 2016), 81 FR 30613 (May 17, 2016). The
burdens associated with the CAT NMS Plan Notice
were submitted under OMB number 3235–0671
which relates to the NMS Plan required to be filed
under Rule 613.
3 See Securities Exchange Act Release No. 79318
(November 15, 2016), 81 FR 84696 (November 23,
2016), available at https://www.sec.gov/rules/sro/
nms/2016/34-79318.pdf (‘‘CAT NMS Plan Order’’).

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37721

NMS securities; 4 (2) a one-time
assessment of the clock synchronization
standards in the Plan before reporting
begins for Industry Members, which
assessment shall take into account the
diversity of CAT Reporters and
systems; 5 and (3) a one-time report that
discusses the Participants’ assessment of
implementing coordinated
surveillance.6
This Notice addresses the remaining
information collection requirements
noticed in the CAT NMS Plan Notice
and certain additional information
collection requirements of the CAT
NMS Plan Order, which are: (1)
Development of a Central Repository
tasked with the receipt, consolidation,
and retention of reported order and
execution information submitted by
Participants and their members; 7 (2) the
requirement that each Participant, and
any member of such Participant, record
and electronically report to the Central
Repository details for each order and
Reportable Event documenting the life
of an order through the process of
original receipt or origination, routing,
modification, cancellation, and
execution (in whole or in part) for each
NMS security; 8 (3) the requirement that
the CAT NMS Plan require the Central
Repository to collect and retain on a
current and continuous basis NBBO
information for each NMS security,
transaction reports reported pursuant to
an effective transaction reporting plan,
and Last Sale Reports reported pursuant
to the Options Price Reporting
Authority Plan; 9 (4) the requirement
that the CAT NMS Plan must require
that every national securities exchange
and national securities association
develop and implement a surveillance
system, or enhance existing surveillance
systems, reasonably designed to make
use of the consolidated information
contained in the consolidated audit
trail; 10 (5) a one-time independent audit
of the fees, costs, and expenses incurred
by the Participants on behalf of CAT
NMS, LLC prior to the Effective Date 11
of the Plan; 12 (6) a one-time report from
4 See 17 CFR 242.613(i). See also ‘‘One-Time
Written Assessments,’’ Consolidated Audit Trail,
LLC at: https://www.catnmsplan.com/one-timewritten-assessments/index.html.
5 See CAT NMS Plan Order, supra note 3, at
84940.
6 Id. at 84940–84941.
7 See 17 CFR 242.613.
8 See 17 CFR 242.613(c)(1), (c)(5), (c)(6), (c)(7).
9 See 17 CFR 242.613(e)(7).
10 See 17 CFR 242.613(f).
11 The ‘‘Effective Date’’ is the date the
Commission approved the CAT NMS Plan, which
is November 15, 2016. See id.
12 See CAT NMS Plan Order, supra note 3, at
84940.

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Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices

the Participants discussing the
feasibility and advisability of allowing
Industry Members to bulk download the
Raw Data that it has submitted to the
Central Repository; 13 (7) a one-time
assessment of the nature and extent of
errors in the Customer information
submitted to the Central Repository and
whether the correction of certain data
fields over others should be prioritized
from the Participants; 14 (8) a one-time
report on the impact of tiered fees on
market liquidity, including an analysis
of the impact of the tiered-fee structure
on Industry Members provision of
liquidity from the Participants; 15 (9) an
assessment of the projected impact of
any Material Systems Change on the
Maximum Error Rate, prior to the
implementation of such Material
Systems Change from the
Participants; 16 (10) an annual
requirement that that the CAT LLC
financials be (i) in compliance with
GAAP, (ii) be audited by an
independent public accounting firm,
and (iii) be made publicly available; 17
(11) a requirement that each Participant
conduct background checks for its
employees and contractors that will use
the CAT System.18
The Commission believes that the
CAT NMS Plan, once fully
implemented, will improve the quality
of the data available to regulators in four
areas that affect the ultimate
effectiveness of core regulatory efforts—
completeness, accuracy, accessibility
and timeliness.19 The improvements in
these data qualities would substantially
improve regulators’ ability to perform
analysis and reconstruction of market
events, and market analysis and
research to inform policy decisions, as
well as perform regulatory activities, in
particular market surveillance,
examinations, investigations, and other
enforcement functions.
The Commission estimates that 1524
respondents 20 will require an aggregate
13 Id.

at 84941.

14 Id.

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15 Id.

at 84941–84942.
16 Id. at 84942. The Commission believes that four
assessments would be filed annually.
17 Id.
18 Id. The Commission believes that these
background checks are necessary to ensure that
only authorized and qualified persons are using the
CAT System.
19 See CAT NMS Plan Order, supra note 3, at
45727 (discussing four ‘‘qualities’’ of trade and
order data that impact the effectiveness of core
Participant and Commission regulatory efforts:
accuracy, completeness, accessibility, and
timeliness).
20 The Commission notes that 24 Participants (the
23 national securities exchanges and one national
securities association) and 1,500 broker-dealers
subject to information collections requirements
pursuant to Rule 613 and the CAT NMS Plan.

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total of approximately 7,572,610 hours
per year to comply with the collection
of information. The Commission further
estimates that the aggregate cost to
comply with the collection of
information will be approximately
$463,322,593 per year.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission,
c/o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: June 18, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–13512 Filed 6–22–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89080; File No. SR–
CboeEDGX–2020–028]

Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
21.5 To Conform the Rule to Section
3.1 of the Plan for the Purpose of
Developing and Implementing
Procedures Designed To Facilitate the
Listing and Trading of Standardized
Options and Add New Rule 21.5(e)
June 17, 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 June 11,
2020, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX 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
1 15
2 17

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U.S.C. 78s(b)(1).
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Exchange filed the proposal as a ‘‘noncontroversial’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX Options’’)
proposes to amend Rule 21.5 to conform
the rule to Section 3.1 of the Plan for the
Purpose of Developing and
Implementing Procedures Designed to
Facilitate the Listing and Trading of
Standardized Options (the ‘‘OLPP’’) and
add new Rule 21.5(e). 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://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
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 purpose of this rule change is to
amend Rule 21.5 (Minimum Increments)
to align the rule with the recently
approved amendment to the OLPP.
Background
On January 23, 2007, the Commission
approved on a limited basis a Penny
Pilot in option classes in certain issues
(‘‘Penny Pilot’’). The Penny Pilot was
designed to determine whether
investors would benefit from options
being quoted in penny increments, and
3 15
4 17

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U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).

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