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Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 / Notices
In addition, the Board considered the views of the staffs of the Commission, the FDIC, and FINRA, as reported to the SIPC staff and as further reported by the SIPC staff to the Board. The Board concluded that the SIPC Fund remains on a steady growth path for the near future, barring any unforeseen catastrophic event, and that any increases in the cash limit of SIPA
protection would not appreciably benefit customers.
2. Other Appropriate Factors a. Potential Divergence Between FDIC
and SIPC Protections The Board noted the equivalency presently $250,000between SIPAs maximum cash advance amount and the standard maximum deposit insurance amount that fixes the limit on bank deposit insurance under the Federal Deposit Insurance Act FDIA, 12
U.S.C. 1821 et seq. An inflation adjustment to the former without a corresponding adjustment to the latter would result in an unprecedented divergence between the maximum cash advance amount under SIPA and the standard maximum deposit insurance amount under FDIA.
Increases to the limit of protection for cash claims under SIPA historically have been in lockstep with increases in FDIC deposit insurance.4 In 2008, and again, in 2010, parity with deposit insurance was the primary reason for SIPCs request to Congress to increase the SIPA limit of protection for cash claims. In 2016, uniformity with FDIC
deposit insurance was a primary factor in the Boards determination not to adjust the standard maximum cash advance amount.

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b. Historical Claims Experience and Benefit to Customers The Board also reviewed the number of claims for cash exceeding the limit of protection in past and present liquidation proceedings. This data suggests that the benefit to customers of an inflation adjustment may be limited.
Of the more than 770,000 allowed claims in completed or substantially 4 The below compares the limits of protection for cash under SIPA and the FDIA: SIPA: $20,000 Pub.
L. No 91598, 6f1A, 84 Stat. 1636, 1651
1970. FDIA: $20,000 Pub. L. 91151, 7, 83 Stat.
371, 375 1969. SIPA: $40,000 Pub. L. 95283, 9, 92 Stat. 249, 265 1978. FDIA: $40,000 Pub. L. 93
495, 102a, 88 Stat. 1500, 1502 1974. SIPA:
$100,000 Pub. L. 96433, 1, 94 Stat. 1855 1980.
FDIA: $100,000 Pub. L. 96221, 308, 94 Stat. 132, 147 1980. SIPA: $250,000 Pub. L. 111203, 929H, 124 Stat. 1376, 1865 2010. FDIA: $250,000
temporary until 12/31/2009 Public Law 110343, 136, 122 Stat. 3765, 3799 2008; permanent Public Law 111203, 335, 124 Stat. 1376, 1540
2010.

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completed liquidation proceedings as of year-end 2019, the unsatisfied portion of cash claims amounted to $25 million.
More than half of that amount involved only three claims. In the seven SIPA
proceedings initiated since 2010, when the cash limit was raised to $250,000, only one cash claim remains unsatisfied.
c. Aggregate Credit Balances and Sweep Programs It also was brought to the Boards attention that aggregate cash credit balances at member firms have not increased over the last five years in line with inflation. Instead, member firms have increasingly utilized sweep programs to move customer free credit balances from brokerdealers to banks.
Conclusion The Board weighed all the relevant factors against a potential adjustment of $40,000, the amount determined by the formula set forth in SIPA 78fff 3e1B. The Board concluded that, on balance, in light of the intent to grow the SIPC Fund to reach a target of $5
billion, the unprecedented break with the FDIC limit that would result, and the absence of evidence that an appreciable number of investors would be benefitted, an adjustment to the limit of protection for cash claims was not appropriate. Accordingly, the Board determined that the standard maximum cash advance amount should remain at $250,000 per customer.

II. Date of Effectiveness and Timing for Commission Action Within thirty-five days of the date of publication of this notice of the SIPC
Boards determination in the Federal Register, or within such longer period i as the Commission may designate of not more than ninety days after such date if it finds such longer period to be appropriate and publishes its reasons for so finding or ii as to which SIPC
consents, the Commission shall:
A By order approve such determination or B Institute proceedings to determine whether such determination should be disapproved.
III. Notice of the Determination of the SIPC Board Not To Adjust the Standard Maximum Cash Advance Amount for Inflation On January 1, 2021, pursuant to section 9e1 of the Securities Investor Protection Act, 15 U.S.C. 78fff3e1, the Board of Directors of the Securities Investor Protection Corporation the Board determined that an inflation
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adjustment to the standard maximum cash advance amount would not be appropriate. Accordingly, the Board determined that the standard maximum cash advance amount will remain at $250,000 per customer, effective January 1, 2022.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5
Dated: January 27, 2021.
J. Matthew DesLesDernier, Assistant Secretary.
FR Doc. 202102128 Filed 2121; 8:45 am BILLING CODE 801101P

SECURITIES AND EXCHANGE
COMMISSION
Release No. 3491002; File No. SR
CboeEDGX2021006

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule January 27, 2021.

Pursuant to Section 19b1 1 of the Securities Exchange Act of 1934 the Act,2 and Rule 19b4 thereunder,3
notice is hereby given that on January 13, 2021, Cboe EDGX Exchange, Inc.
the Exchange or EDGX 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change Cboe EDGX Exchange, Inc. the Exchange or EDGX is filing with the Securities and Exchange Commission Commission a proposed rule change to amend the fee schedule applicable to Members and non-Members of the Exchange pursuant to EDGX Rules 15.1a and c. Changes to the fee schedule pursuant to this proposal are effective upon filing. The text of the proposed rule change is provided in Exhibit 5.
The text of the proposed rule change is also available on the Exchanges website http markets.cboe.com/us/
options/regulation/rule_filings/edgx/, 5 17

CFR 200.303f3.
U.S.C. 78sb1.
2 15 U.S.C. 78a.
3 17 CFR 240.19b4.
1 15

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