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Federal Register / Vol. 86, No. 25 / Tuesday, February 9, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES

affiliated exchanges.10 As such, the proposed change will also harmonize and conform the Exchanges billing practices with that of its affiliated exchanges. The proposed billing policy will apply to all charges and rebates reflected in the Exchanges fees schedules.
2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6b of the Act.11 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6b5 12 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 6b5 13 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
With respect to the proposed language regarding the billing procedure, the Exchange believes continuing to require the submission of all billing disputes in writing, and with supporting documentation is reasonable because the Exchange provides TPHs with ample tools to monitor and account for various charges incurred in a given month.
Additionally, the Exchange notes that most TPHs and Non-TPHs that pay exchange fees are sophisticated entities, so it is appropriate to expect them to promptly review their invoices for errors and to be capable of identifying such errors. The proposed provision also continues to promote the protection of investors and the public interest by providing a clear and concise mechanism for TPH and Non-TPHs to dispute fees and for the Exchange to review such disputes in a timely manner. Moreover, the proposed billing dispute language, which lowers the Exchanges administrative burden, is 10 See
supra note 6.
U.S.C. 78fb.
12 15 U.S.C. 78fb5.
13 Id.

similar to billing dispute language of other exchanges, and the same as the Exchanges affiliates.14 In addition, the billing procedure is fair, equitable, and not unfairly discriminatory because it will apply equally to all TPHs and NonTPHs that pay Exchange fees.
The Exchange also believes that providing that all fees and rebates are final after three months i.e., always resolving billing errors only for the three full calendar months preceding the month in which the Exchange became aware of the error, is reasonable as both the Exchange and TPHs and Non-TPHs have an interest in knowing when its fee assessments are final and when reliance can be placed on those assessments.
Indeed, without some deadline on billing errors, the Exchange and TPHs and Non-TPHs would never be able to close their books with any confidence.
Furthermore, as noted above, a number of Exchanges similarly consider their fees final after a similar period of time.15
The proposed change is also equitable, and not unfairly discriminatory because it will apply equally to all TPHs and Non-TPHs that pay Exchange fees and apply in cases where either the TPH or Non-TPH discovers the error or the Exchange discovers the error. Lastly, the proposed changes to the fees schedule will align the Exchanges billing practices with those of its affiliated exchanges.
B. Self-Regulatory Organizations Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. With respect to the billing procedure and billing error policy, the proposed rule change would provide a clear process that would apply equally to all TPHs. Additionally, the proposed rule change is similar to rules of other exchanges. The Exchange does not believe such proposed changes would impair the ability of TPHs or competing order execution venues to maintain their competitive standing in the financial markets. Moreover, because the proposed changes would apply equally to all TPHs, the proposal does not impose any burden on competition.
C. Self-Regulatory Organizations Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No comments were solicited or received on the proposed rule change.

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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 from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19b3A of the Act 16 and Rule 19b4f6 17
thereunder.
The Exchange has asked the Commission to waive the 30-day operative delay.18 The Commission finds that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because waiver of the operative delay will allow the Exchange to provide a clear process for billing errors and fee disputes without delay. Moreover, the proposed rule changes are comparable to other policies and practices established by other exchanges and therefore does not raise any new or novel issues. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.19
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 will institute proceedings to determine whether the proposed rule change 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:
16 15

U.S.C. 78sb3A.
CFR 240.19b4f6. In addition, Rule 19b 4f6 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.
18 17 CFR 240.19b4f6iii.
19 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule changes impact on efficiency, competition, and capital formation. 15 U.S.C. 78cf.
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