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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Notices
information 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 ReviewOpen 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: March 2, 2021.
J. Matthew DeLesDernier, Assistant Secretary.
FR Doc. 202104656 Filed 3521; 8:45 am BILLING CODE 801101P

SECURITIES AND EXCHANGE
COMMISSION
Release No. 3491239; File No. SR
CboeBZX2021017

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposal To Permit the Exchange To Look Back Only to July 2020 To Correct Certain Billing Errors Which Were Discovered in October 2020

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Pursuant to Section 19b1 of the Securities Exchange Act of 1934 the Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on February 18, 2021, Cboe BZX Exchange, Inc. the Exchange or BZX 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 Exchange filed the proposal as a non-controversial proposed rule change pursuant to Section 19b3Aiii of the Act 3 and Rule 19b4f6 thereunder.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

1. Purpose The Exchange recently amended its equities and options fees schedules to adopt a provision relating to billing errors and fee disputes.5 Specifically, the Exchange adopted a provision that provides that all fees and rebates assessed prior to the three full calendar months before the month in which the Exchange becomes aware of a billing error shall be considered final.
Particularly, the Exchange will resolve an error by crediting or debiting Members and Non-Members based on the fees or rebates that should have been applied in the three full calendar months preceding the month in which the Exchange became aware of the error, including to all impacted transactions that occurred during those months.6 The 5 See Securities Exchange Act Release No. 90897
January 11, 2021, 86 FR 4161 January 15, 2021
SRCboeBZX2020094.
6 For example, if the Exchange becomes aware of a transaction fee billing error on February 4, 2021, the Exchange will resolve the error by crediting or
1 15

U.S.C. 78sb1.
2 17 CFR 240.19b4.
3 15 U.S.C. 78sb3Aiii.
4 17 CFR 240.19b4f6.

19:05 Mar 05, 2021

II. Self-Regulatory Organizations 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 Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
March 2, 2021.

VerDate Sep<11>2014

I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change Cboe BZX Exchange, Inc. BZX or the Exchange is filing with the Securities and Exchange Commission the Commission a proposal to permit the Exchange to look back only to July 2020 to correct certain billing errors which were discovered in October 2020. This rule change does not provide for any modifications to the text of the Exchanges rules or fees schedule.
The text of the proposal is also available on the Exchanges website http markets.cboe.com/us/equities/
regulation/rule_filings/bzx/, at the Exchanges Office of the Secretary, and at the Commissions Public Reference Room.

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Exchange will apply the three month look back regardless of whether the error was discovered by the Exchange or by a Member or Non-Member that submitted a fee dispute to the Exchange.
The Exchanges fees schedules also provide that all disputes concerning fees and rebates assessed by the Exchange would have to be submitted to the Exchange in writing and accompanied by supporting documentation. The purpose of this policy is to provide both the Exchange and Members and NonMembers subject to the Exchanges fee schedule finality and the ability to close their books after a known period of time. The Exchange further notes that several other exchanges have adopted similar provisions in their rules.7
The Exchange proposes to apply the recently adopted billing policy to transactions impacted by billing errors that were discovered in October 2020.
Particularly, in October 2020, the Exchange identified a billing error relating to certain fee codes. As a result of the discovery, the Exchange conducted a review of additional fee code configurations, which review was only recently completed. The review resulted in the discovery of additional billing errors relating to Exchange fee codes. These errors, along with the original error discovered in October 2020, resulted in various Members being over-rebated or under-billed, and to a lesser extent over-billed, over the course of several years. In the absence of applying the recently adopted billing policy to transactions impacted by the October 2020 billing errors, the Exchange would be required to credit or debit Members based on the fees or rebates that should have been applied to all impacted transactions, regardless of how far back the transactions occurred which as noted above, is several years.
If the Exchange were permitted to apply the current rule language to the billing errors discovered in October 2020
however, then the Exchange could limit its look back in correcting those errors to only those transactions that occurred debiting Members based on the fees or rebates that should have been applied to any impacted transactions during November, 2020, December 2020 and January 2021. The Exchange notes that because it bills in arrears, the Exchange would be able to correct the error in advance of issuing the February 2021 invoice and therefore, transactions impacted through the date of discovery in this example, February 4, 2021 and thereafter, would be billed correctly.
7 See e.g., Securities Exchange Act Release No.
87650 December 3, 2019, 84 FR 67304 December 9, 2019 SRNYSECHX2019024; Securities Exchange Act Release No. 84430 October 16, 2018, 83 FR 53347 October 22, 2018 SRNYSENAT
201823; and Securities Exchange Act Release No.
79060 October 6, 2016, 81 FR 70716 October 13, 2016 SRISEGemini201611.

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