Sunshine Act Meetings, 53548 [2023-17049]
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53548
Federal Register / Vol. 88, No. 151 / Tuesday, August 8, 2023 / Notices
RAILROAD RETIREMENT BOARD
Sunshine Act Meetings
10 a.m., August 16, 2023.
PLACE: Members of the public wishing
to attend the meeting must submit a
written request at least 24 hours prior to
the meeting to receive dial-in
information. All requests must be sent
to SecretarytotheBoard@rrb.gov.
STATUS: This meeting will be open to the
public.
MATTERS TO BE CONSIDERED:
• Office of Legislative Affairs—Recent
Briefings and Appropriations
CONTACT PERSON FOR MORE INFORMATION:
Stephanie Hillyard, Secretary to the
Board, (312) 751–4920.
TIME AND DATE:
(Authority 5 U.S.C. 552b)
Dated: August 4, 2023.
Stephanie Hillyard,
Secretary to the Board.
BILLING CODE 7905–01–P
[Release No. 34–98044; File No. SR–CBOE–
2023–036]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Allow Certain Flexible
Exchange Equity Options To Be Cash
Settled
August 2, 2023.
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 August 1,
2023, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) 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.
ddrumheller on DSK120RN23PROD with NOTICES1
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rules 4.21 and 8.35 related to Flexible
Exchange (‘‘FLEX’’) Options. The text of
the proposed rule change is available on
the Exchange’s website (https://
www.cboe.com/AboutCBOE/
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
20:00 Aug 07, 2023
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.
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
2 17
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2023–17049 Filed 8–4–23; 11:15 am]
1 15
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
Jkt 259001
The Exchange proposes to amend
Rules 4.21 and 8.35 related to FLEX
Options. FLEX Options are customized
equity or index contracts that allow
investors to tailor contract terms for
exchange-listed equity and index
options. The Exchange proposes to
amend Rule 4.21 to allow for cash
settlement of certain FLEX Equity
Options.3 Generally, FLEX Equity
Options are settled by physical delivery
of the underlying security,4 while all
FLEX Index Options are currently
settled by delivery in cash.5 As
proposed, FLEX Equity Options where
the underlying security is an ExchangeTraded Fund (‘‘ETF’’) would be
permitted to be settled by delivery in
cash if the underlying security meets
prescribed criteria. The Exchange notes
that cash-settled FLEX ETF Options will
be subject to the same trading rules and
procedures that currently govern the
trading of other FLEX Options on the
Exchange, with the exception of the
rules to accommodate the cashsettlement feature proposed in this rule
filing.
To permit cash settlement of certain
FLEX ETF Options, the Exchange
proposes new subparagraph (ii) to Rule
4.21(b)(5)(A). Proposed Rule
4.21(b)(5)(A)(ii) would provide that the
exercise settlement for a FLEX ETF
3 A ‘‘FLEX Equity Option’’ is an option on a
specified underlying equity security. See Cboe
Options Rule 1.1.
4 See Rule 4.21(b)(5)(A)(i).
5 See Rule 4.21(b)(5)(B). As discussed below, cash
settlement is also permitted in the over-the-counter
(‘‘OTC’’) market.
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
Option may be by physical delivery of
the underlying ETF or by delivery in
cash if the underlying security,
measured over the prior six-month
period, has an average daily notional
value of $500 million or more and a
national average daily volume (‘‘ADV’’)
of at least 4,680,000 shares.6
The Exchange also proposes in the
introductory paragraph of Rule 4.21(b)
that a FLEX Equity Option overlying an
ETF (cash- or physically settled) may
not be the same type (put or call) and
may not have the same exercise style,
expiration date, and exercise price as a
non-FLEX Equity Option overlying the
same ETF.7 In other words, regardless of
whether a FLEX Equity Option
overlying an ETF is cash- or physically
settled, at least one of the exercise style
(i.e., American-style or European-style),
expiration date, and exercise price of
that FLEX Option must differ from those
terms of a non-FLEX Option overlying
the same ETF in order to list such a
FLEX Equity Option. For example,
suppose a non-FLEX SPY option (which
is physically settled, p.m.-settled and
American-style) with a September
expiration and exercise price of 475 is
listed for trading. A FLEX Trader could
not submit an order to trade a FLEX SPY
option (which is p.m.-settled) that is
cash-settled (or physically settled) and
American-style with a September
expiration and exercise price of 475.
In addition, the Exchange proposes
new subparagraph (a) to Rule
4.21(b)(5)(A)(ii), which would provide
that the Exchange will determine biannually the underlying ETFs that
satisfy the notional value and trading
volume requirements in proposed Rule
4.21(b)(5)(A)(ii) by using trading
statistics for the previous six-months.8
The proposed rule would further
provide that the Exchange will permit
cash settlement as a contract term on no
6 See proposed Rule 4.21(b)(5)(A)(ii). The
Exchange also proposes a corresponding
nonsubstantive amendment to Rule 4.21(b)(5)(A)(i)
and a nonsubstantive amendment to Rule 4.21 to
renumber current Rule 4.21(b)(5)(A)(ii) as new Rule
4.21(b)(5)(A)(iii).
7 All non-FLEX Equity Options (including on
ETFs) are physically settled. Note all FLEX and
non-FLEX Equity Options (including ETFs) are
p.m.-settled.
8 See proposed Rule 4.21(b)(5)(A)(ii)(a). The
Exchange will announce the implementation date of
the proposed rule change via Exchange Notice. The
Exchange plans to conduct the bi-annual review on
January 1 and July 1 of each year. The results of
the bi-annual review will be announced via
Exchange Notice and any new securities that
qualify would be permitted to have cash settlement
as a contract term beginning on February 1 and
August 1 of each year. If the Exchange initially
begins listing cash-settled FLEX Options on a
different date (e.g., September 1), it would initially
list securities that qualified as of the last bi-annual
review (e.g., the one conducted on July 1).
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[Federal Register Volume 88, Number 151 (Tuesday, August 8, 2023)]
[Notices]
[Page 53548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17049]
[[Page 53548]]
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RAILROAD RETIREMENT BOARD
Sunshine Act Meetings
TIME AND DATE: 10 a.m., August 16, 2023.
PLACE: Members of the public wishing to attend the meeting must submit
a written request at least 24 hours prior to the meeting to receive
dial-in information. All requests must be sent to
[email protected].
STATUS: This meeting will be open to the public.
MATTERS TO BE CONSIDERED:
Office of Legislative Affairs--Recent Briefings and
Appropriations
CONTACT PERSON FOR MORE INFORMATION: Stephanie Hillyard, Secretary to
the Board, (312) 751-4920.
(Authority 5 U.S.C. 552b)
Dated: August 4, 2023.
Stephanie Hillyard,
Secretary to the Board.
[FR Doc. 2023-17049 Filed 8-4-23; 11:15 am]
BILLING CODE 7905-01-P
