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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Notices 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 SRPhlx202110 and should be submitted on or before March 29, 2021.

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/edga/, at the Exchanges Office of the Secretary, and at the Commissions Public Reference Room.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.27
J. Matthew DeLesDernier, Assistant Secretary.

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.

FR Doc. 202104679 Filed 3521; 8:45 am BILLING CODE 801101P

SECURITIES AND EXCHANGE
COMMISSION
Release No. 3491232; File No. SR
CboeEDGA2021006

Self-Regulatory Organizations; Cboe EDGA 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
March 2, 2021.

jbell on DSKJLSW7X2PROD with NOTICES

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 EDGA Exchange, Inc.
the Exchange or EDGA 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 noncontroversial 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.
I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change Cboe EDGA Exchange, Inc. EDGA
or the Exchange is filing with the Securities and Exchange Commission the Commission a proposal to 27 17

CFR 200.303a12.
U.S.C. 78sb1.
2 17 CFR 240.19b4.
3 15 U.S.C. 78sb3Aiii.
4 17 CFR 240.19b4f6.
1 15

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A. Self-Regulatory Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange recently amended its fees schedule 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 NonMembers 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 Exchange 5 See Securities Exchange Act Release No. 90900
January 11, 2021, 86 FR 4149 January 15, 2021
SRCboeEDGA2020032.
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 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.

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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 schedule also provides 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 Non-Members 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 Exchanges affiliate, Cboe BZX
Exchange, Inc. identified a billing error relating to certain fee codes. As a result of the discovery, the Exchange, along with its affiliates, conducted a review of additional fee code configurations across each Exchange, which review was only recently completed. The review resulted in the discovery of additional billing errors relating to fee codes. These errors resulted in various EDGA Members being under-billed or 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 in the three months preceding the discovery of the errors i.e., July 2020
through September 2020.8 Moreover, the Exchange notes there are a number of Members that would benefit from the 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.
8 The Exchange corrected errors in advance of issuing the October 2020 invoice and therefore, transactions impacted through the date of discovery and thereafter, were billed correctly.

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