[Federal Register Volume 86, Number 14 (Monday, January 25, 2021)]
[Notices]
[Pages 6944-6948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01420]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90937; File No. SR-MIAX-2021-01]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 1308, Supervision of
Accounts, To Adopt Temporary Rules To Extend the Time by Which Members
Must Complete Their Branch Office Inspections for the Calendar Year
2020 and To Provide Temporary Remote Inspection Relief for Their Office
Inspections for Calendar Years 2020 and 2021
January 15, 2021.
Pursuant to the provisions of 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 January 08, 2021, Miami International
Securities Exchange, LLC (``MIAX Options'' or the ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') a proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend Exchange Rule 1308,
Supervision of Accounts, to: (1) Remove obsolete rule text; and (2)
adopt temporary rules to extend the time by
[[Page 6945]]
which Members \3\ must complete their branch office \4\ inspections for
the calendar year 2020 and to provide temporary remote inspection
relief for their office inspections for calendar years 2020 and 2021.
---------------------------------------------------------------------------
\3\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\4\ A ``branch office'' is any location where one or more
associated persons of a Member regularly conduct the business of
effecting any transactions in, or inducing or attempting to induce
the purchase or sale of any security, or is held out as such, with
such exclusions pursuant to Exchange Rule 1306(c)(1)-(7). See
Exchange Rule 1306(c).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/ at MIAX Options'
principal office, 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 Exchange Rule 1308, Supervision of
Accounts, to: (1) Remove obsolete rule text; and (2) adopt temporary
rules to extend the time by which Members must complete their branch
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 Exchange proposes to amend Exchange Rule 1308 by removing
obsolete rule text that is the first sentence prior to subparagraph
(a). The first sentence of Exchange Rule 1308 currently provides as
follows: ``The deadline to submit the annual supervision-related
reports pursuant paragraphs (g) and (h) will be extended from June 30,
2020 to July 31, 2020.'' \5\ After the July 31, 2020 extension passed,
the Exchange determined not to file to amend its rules to extend it any
further. Accordingly, this rule text is obsolete and no longer
necessary. The purpose of this proposed change is to provide clarity to
Members and market participants regarding the Exchange's rules.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 89261 (July 8,
2020), 85 FR 42447 (July 14, 2020) (SR-MIAX-2020-24) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Temporarily Extend Filing Deadlines for Certain Supervision-Related
Reports). The Exchange filed this rule change amidst continued and
unprecedented market uncertainty, and sought to address potential
challenges that Members could face in timely meeting their
obligations to submit to the Exchange annual supervision-related
reports under Rule 1308(g) and (h).
---------------------------------------------------------------------------
In light of the operational challenges that Members are facing due
to the outbreak of the coronavirus disease (``COVID-19''), the Exchange
proposes to extend the time by which Members must complete their
calendar year 2020 inspection obligations under Exchange Rule 1308(d)
(Annual Branch Office Inspections) to March 31, 2021,\6\ and to provide
Members with the option to complete their calendar year 2020 and
calendar year 2021 inspection obligations under Exchange Rule 1308(d)
remotely, without an on-site visit to the office or location.\7\
---------------------------------------------------------------------------
\6\ 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.
\7\ 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).
---------------------------------------------------------------------------
The Exchange has observed the impact of the COVID-19 pandemic on
its Members', investors, and the industry generally and recognizes that
Members 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.\8\ In response, like many
employers across the United States, Members 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.\9\
---------------------------------------------------------------------------
\8\ 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-codeforcoronavirus-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-openingremarksat-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/preventgettingsick/prevention.html.
\9\ 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).
---------------------------------------------------------------------------
Exchange Rules require Members to conduct branch \10\ and non-
branch office and location inspections pursuant to certain annual
cycles. Specifically, pursuant to Exchange Rule 1308(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.
Members must maintain written reports of such inspections.\12\
---------------------------------------------------------------------------
\10\ The Exchange notes that notwithstanding the exclusions in
subparagraphs (c)(1)-(7) of Exchange Rule 1306, any location that is
responsible for supervising the activities of persons associated
with a Member at one or more non-branch locations of such Member is
considered to be a branch office. See Exchange Rule 1306(d).
\11\ A Member may demonstrate to the satisfaction of the
Exchange that because of proximity, special reporting or supervisory
practice, other arrangements may satisfy Exchange Rule 1308(d)'s
requirements for a particular branch office, or that, based upon the
written policies and procedures of such Member providing for a
systematic risk-based surveillance system, the Member submits a
proposal to the Exchange and receives, in writing, an exemption from
the requirement in Exchange 1308(d), pursuant to Exchange Rule
1308(e).
\12\ See Exchange Rule 1308(d)(2).
---------------------------------------------------------------------------
As a result of the compelling health and welfare concerns stemming
from the COVID-19 pandemic, Members 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 Members to conduct the on-site inspections
pursuant to Exchange Rule 1308(d) at many or most locations for
calendar year 2020 because this compliance
[[Page 6946]]
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,\13\ but also puts the health and
safety of employees at great risk of contracting and spreading COVID-
19.\14\ 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 Member 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.\15\ While Members 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),\16\ 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.\17\ As a result,
the Exchange understands that Members 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,\18\ Members may have a considerable
backlog of 2020 inspections that may have been difficult, if not
impossible, to overcome on or before calendar year 2020 ended.
Additionally, the Exchange recognizes that planning on-site inspections
for calendar year 2021 for Member 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 Members to meet their inspection obligations under
Exchange Rule 1308(d) for calendar years 2020 and 2021.
---------------------------------------------------------------------------
\13\ See e.g., City of Chicago, Emergency Travel Order (November
10, 2020) https://www.chicago.gov/city/en/sites/covid-19/home/emergency-travelorder.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).
\14\ 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'').
\15\ See CDC, COVIDView, Key Updates for Week 44, ending October
31, 2020 (November 5, 2020), https://www.cdc.gov/coronavirus/2019-ncov/coviddata/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).
\16\ See supra note 9.
\17\ See supra note 13.
\18\ See supra note 15.
---------------------------------------------------------------------------
Specifically, the Exchange proposes to adopt temporary Rule
1308(d)(4), to provide that each Member obligated to complete an annual
branch office inspection pursuant to Exchange Rule 1308(d) 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 Member'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 Members with an
opportunity to better manage the operational challenges resulting from
the COVID-19 pandemic and the 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 Exchange Rule
1308(d)(5), which provides that each Member obligated to conduct an
inspection of a branch office or non-branch location in calendar year
2020 and calendar year 2021 pursuant to Exchange Rule 1308(d), as
applicable, may, subject to the requirements of Rule 1308(d)(5),
satisfy such obligation by conducting the applicable inspection
remotely, without an on-site visit to the office or location. In
accordance with Exchange Rule 1308(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 Exchange Rule 1308(d)(5), a Member remains
subject to the other requirements of Exchange Rule 1308(d).
The proposed rule change also adopts written supervisory procedures
for remote inspections in proposed Exchange Rule 1308(d)(5)(i), which
provides that, consistent with a Member's obligations under Rule
1308(d), a Member that elects to conduct each of its calendar year 2020
or calendar year 2021 branch office 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
branch office, that may be used to conduct remote inspections; and (ii)
the use of other risk-based systems employed generally by the branch
office 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 Member's existing
supervisory obligations to establish and maintain written supervisory
procedures for branch office reviews and review of non-branch offices
and locations.\19\
---------------------------------------------------------------------------
\19\ See Exchange Rule 1306(g)-(h).
---------------------------------------------------------------------------
Proposed temporary Rule 1308(d)(5)(ii) provides that the
requirement to conduct inspections of offices and locations is one part
of a Member's overall obligation to have an effective supervisory
system and, therefore, a Member must continue with its ongoing review
of the activities and functions occurring at all offices and locations,
whether or not the Member conducts inspections remotely. A Member's use
of a remote inspection of an office or location will be held to the
same standards for review as set forth under Exchange Rule 1308(d).
Where a Member's remote inspection of an office or location identifies
any indicators of irregularities or misconduct (i.e., ``red
flags''),\20\ the Member may need to
[[Page 6947]]
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, including potentially a subsequent physical, on-
site visit on an announced or unannounced basis when the branch
office's operational difficulties associated with COVID-19 abate,
nationally or locally as relevant, and the challenges a branch office
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 proposed Exchange Rule 1308(d)(5) does not extend to
a Member's inspection requirements beyond calendar year 2021 and such
inspections must be conducted in compliance with Exchange Rule
1308(d)(1) through (3). The Exchange believes that the proposed rule is
consistent with a Member'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.\21\
---------------------------------------------------------------------------
\20\ 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).
\21\ See generally Exchange Rule 1308(g)(5)(i).
---------------------------------------------------------------------------
Finally, proposed temporary Exchange Rule 1308(d)(5)(iii) provides
for a documentation requirement and specifically provides that a Member
must maintain and preserve a centralized record for each of calendar
year 2020 and calendar year 2021 that separately identifies: (1) All
offices or locations that had inspections that were conducted remotely;
and (2) any offices or locations for which the Member determined to
impose additional supervisory procedures or more frequent monitoring,
as provided in Exchange Rule 1308(d)(5). A Member'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, Members 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 temporary additions of
Exchange Rule 1308(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 Member'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 offices and locations for
calendar years 2020 and 2021, would provide Members a way to comply
with Exchange Rule 1308(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
Members 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.\22\
---------------------------------------------------------------------------
\22\ See supra notes 6 and 7.
---------------------------------------------------------------------------
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'') and the Cboe Exchange, Inc. (``Cboe'').\23\ The
Exchange notes too that it will continue to monitor the situation and
engage with Members, other financial regulators, and governmental
authorities to determine whether further regulatory relief or guidance
related to Exchange Rule 1308 may be appropriate.
---------------------------------------------------------------------------
\23\ See FINRA Rule 3110.16; see also Securities and Exchange
Act Release Nos. 89188 (June 30, 2020), 85 FR 40713 (July 7, 2020)
(SR-FINRA-2020-019); 90454 (November 18, 2020), 85 FR 75097
(November 24, 2020) (SR-FINRA-2020-040) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Adopt Temporary
Supplementary Material .17 (Temporary Relief To Allow Remote
Inspections for Calendar Year 2020 and Calendar Year 2021) Under
FINRA Rule 3110 (Supervision)); 90583 (December 7, 2020), 85 FR
80207 (December 11, 2020) (SR-CBOE-2020-112) (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).
---------------------------------------------------------------------------
The Exchange notes that MIAX Chapter XIII is incorporated by
reference into the rulebooks of the Exchange's affiliates, MIAX PEARL,
LLC (``PEARL'') and MIAX Emerald, LLC (``Emerald''). As such, the
amendments to MIAX Chapter XIII proposed herein will also apply to MIAX
PEARL and MIAX Emerald Chapters XIII.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\24\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \25\ 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) \26\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78f(b).
\25\ 15 U.S.C. 78f(b)(5).
\26\ Id.
---------------------------------------------------------------------------
The Exchange believes that the proposed change to remove obsolete
text in Exchange Rule 1308 is designed to prevent fraudulent and
manipulative acts and practices, promotes just and equitable principles
of trade, fosters cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitates transactions in securities, remove impediments to and
perfect the mechanism of a free and open market and a national market
[[Page 6948]]
system, and, in general, protects investors and the public interest.
The Exchange believes that the proposed change is a non-substantive and
clarifying change and will reduce potential investor or market
participant confusion regarding the Exchange's rules. Further, the
Exchange believes the proposed change is not material as the waiver
period under this rule text expired at the end of July 2020.
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 Exchange Rule 1308(d), the proposed temporary
rule changes are intended to provide Members additional time to comply
with their Exchange Rule 1308(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 Members 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 rule change to delete
obsolete text will impose any burden on intra-market and inter-market
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the proposed change is not intended to
address competitive issues but rather are corrective, non-substantive
changes that are concerned solely with the removal of rule text that is
no longer effective.
The Exchange does not believe the proposed temporary rule changes
to Exchange Rule 1308(d) will impose any burden on intra-market
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 Members 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 inter-market 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 and Cboe have recently submitted filings to adopt
substantively identical temporary inspection relief rules for their
members and trading permit holders.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \27\ and Rule 19b-4(f)(6) \28\
thereunder.
---------------------------------------------------------------------------
\27\ 15 U.S.C. 78s(b)(3)(A).
\28\ 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.
---------------------------------------------------------------------------
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-MIAX-2021-01 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-MIAX-2021-01. 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-MIAX-2021-01 and should be submitted on
or before February 16, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------
\29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-01420 Filed 1-22-21; 8:45 am]
BILLING CODE 8011-01-P