45 Day Notice

Federal Register / Vol. 85, No. 127 / Wednesday, July 1, 2020 / Notices
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–
CBOE–2020–059 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–2020–059. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2020–059 and
should be submitted on or before July
22, 2020.

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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.46
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–14121 Filed 6–30–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–39, OMB Control No.
3235–0049]

Proposal 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,
Extension:
Form ADV

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission is
issuing this Notice in order to
supplement the Notice it issued on May
12, soliciting comments on the
collection of information. The
Commission is issuing this
supplemental Notice to update the
approximate average per adviser burden
based on data as of March 31, 2020. The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget for
extension and approval.
The title for the collection of
information is ‘‘Form ADV’’ (17 CFR
279.1). Form ADV is the investment
adviser registration form and exempt
reporting adviser reporting form filed
electronically with the Commission
pursuant to rules 203–1 (17 CFR
275.203–1), 204–1 (17 CFR 275.204–1)
and 204–4 (17 CFR 275.204–4) under
the Investment Advisers Act of 1940 (15
U.S.C. 80b–1 et seq.) by advisers
registered with the Commission or
applying for registration with the
Commission or by exempt reporting
advisers filing reports with the
Commission. The information collected
takes the form of disclosures to the
adviser’s clients and potential clients.
The purpose of this collection of
information is to provide advisory
clients, prospective clients, and the
Commission with information about the
adviser, its business, its conflicts of

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46 17

CFR 200.30–3(a)(12).

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39639

interest and personnel. Clients use
certain of the information to determine
whether to hire or retain an adviser.
The information collected provides
the Commission with knowledge about
the adviser, its business, its conflicts of
interest and personnel. The Commission
uses the information to determine
eligibility for registration with the
Commission and to manage its
regulatory, examination, and
enforcement programs. Part 1 of Form
ADV contains information used
primarily by the Commission staff and
Part 2 is the client brochure. Part 3
requires registered investment advisers
that offer services to retail investors to
prepare and file with the Commission a
relationship summary.
The respondents to this information
collection are investment advisers
registered with the Commission or
applying for registration with the
Commission and exempt reporting
advisers filing reports with the
Commission. Our latest data indicate
that there were 13,500 advisers
registered with the Commission as of
March 31, 2020. The Commission has
estimated that Form ADV imposes an
annual blended average per adviser
burden of approximately 21.55 hours
per respondent. Based on this figure, the
Commission estimates a total annual
burden of 383,652 hours for this
collection of information.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden of the
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 45 days of this
publication. An agency may not conduct
or sponsor a collection of information
unless it displays a currently valid OMB
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid OMB control number.
Please direct your written comments
to David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
[email protected].

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Federal Register / Vol. 85, No. 127 / Wednesday, July 1, 2020 / Notices

Dated: June 25, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.

Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.

[FR Doc. 2020–14106 Filed 6–30–20; 8:45 am]

A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change

BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89150; File No. SR–BX–
2020–012]

Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Options 9,
Sections 13 and 15 To Increase the
Position and Exercise Limits for
Options on the SPDR® S&P 500® ETF
Trust
June 25, 2020.

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 June 17,
2020, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
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.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Options 9, Section 13, Position Limits,
to increase position limits for options on
the SPDR® S&P 500® ETF Trust
(‘‘SPY’’), and similarly increase exercise
limits within Options 9, Section 15,
Exercise Limits.
The text of the proposed rule change
is available on the Exchange’s website at
http://nasdaqbx.cchwallstreet.com/, 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
1
2

15 U.S.C. 78s(b)(1).
17 CFR 240.19b–4.

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1. Purpose
The Exchange proposes to amend
Options 9, Section 13, Position Limits,
to increase position limits for options on
SPY. The Exchange’s position limits are
incorporated by reference to Cboe
Exchange, Inc. (‘‘Cboe’’), except for
SPY.3 The proposed amendments to
SPY are based on the similar proposal
by Cboe.4 The Exchange also proposes
to make minor non-substantive
technical corrections to Options 9,
Section 13 and Options 9, Section 15.
Each change will be described below.
Position limits are designed to
address potential manipulative schemes
and adverse market impacts
surrounding the use of options, such as
disrupting the market in the security
underlying the options. While position
limits should address and discourage
the potential for manipulative schemes
and adverse market impact, if such
limits are set too low, participation in
the options market may be discouraged.
The Exchange believes that position
limits must therefore be balanced
between mitigating concerns of any
potential manipulation and the cost of
inhibiting potential hedging activity that
could be used for legitimate economic
purposes.
The Exchange has observed an
ongoing increase in demand in options
on the SPDR® S&P 500® ETF Trust
(‘‘SPY’’) for both trading and hedging
purposes. Though the demand for
3 See Options 9, Section 13(a)(1). The Exchange
notes that with respect to U.S. Dollar-Settled
Foreign Currency Options, those position limits are
incorporated by reference to Phlx. See Options 9,
Section 13(a)(4).
4 See Securities Exchange Act Release No. 88768
(April 29, 2020) (SR–CBOE–2020–015) (Notice of
Filing of Amendment No. 1 and Order Granting
Accelerated Approval of a Proposed Rule Change,
as Modified by Amendment No. 1, to Increase
Position Limits for Options on Certain ExchangeTraded Funds and Indexes). The Cboe proposal also
proposed to increase position limits for options
overlying a number of ETFs as well as the MSCI
Emerging Markets Index (‘‘MXEF’’) and the MSCI
EAFE Index (‘‘MXEA’’). The Exchange’s proposal
only proposes an increase to the position (and
exercise limit) for options overlying SPY. BX does
not list options on MXEF and MXEA. Also, other
options and Exchange-Traded Fund position limits,
which were amended in Cboe’s rule change, have
already been increased on BX because BX’s rules at
Options 9, Section 13 and Options 9, Section 15
incorporate its position limits and exercise limits to
Cboe, except for SPY. Accordingly, this proposal is
limited to SPY.

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options on SPY appear to have
increased, position limits (and
corresponding exercise limits) for
options on SPY have remained the
same. The Exchange believes these
unchanged position limits may have
impeded, and may continue to impede,
trading activity and strategies of
investors, such as use of effective
hedging vehicles or income generating
strategies (e.g., buy-write or put-write),
and the ability of Market Makers to
make liquid markets with tighter
spreads in these options, resulting in the
transfer of volume to over-the-counter
(‘‘OTC’’) markets. OTC transactions
occur through bilateral agreements, the
terms of which are not publically
disclosed to the marketplace. As such,
OTC transactions do not contribute to
the price discovery process on a public
exchange or other lit markets. Therefore,
the Exchange believes that the proposed
increase for position limits (and exercise
limits) on options on SPY may enable
liquidity providers to provide additional
liquidity to the Exchange and other
market participants to transfer their
liquidity demands from OTC markets to
the Exchange, as well as other options
exchange on which they participate. As
described in further detail below, the
Exchange believes that the continuously
increasing market capitalization of SPY
and SPY component securities, as well
as the highly liquid markets for those
securities, reduces the concerns for
potential market manipulation and/or
disruption in the underlying markets
upon increasing position limits, while
the rising demand for trading options on
SPY for legitimate economic purposes
compels an increase in position limits
(and corresponding exercise limits).
Proposed Position Limits for Options on
SPY
Options 9, Section 13 sets forth the
position limit for options on SPY. The
Exchange proposes to amend Options 9,
Section 13 to double the position limits
for options on SPY. The current position
limit for options on SPY is 1,800,000
and the proposed position limit for
options on SPY is 3,600,000. The
Exchange represents that SPY qualifies
for the initial listing criteria set forth in
Options 4, Section 3(i) for ETFs. In
addition, the Exchange is making
corresponding amendments to exercise
limits for options on SPY within
Options 9, Section 15.
Composition and Growth Analysis for
SPY
As stated above, position (and
exercise) limits are intended to prevent
the establishment of options positions
that can be used or might create

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