Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change To Amend the Short Term Option Series Program To Permit the Listing of Two Wednesday Expirations for Options on Certain Exchange Traded Products, 65208-65210 [2023-20425]
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Federal Register / Vol. 88, No. 182 / Thursday, September 21, 2023 / Notices
Notice.
MATTERS TO BE CONSIDERED:
ACTION:
Meeting of the Board of Governors
SUMMARY:
Tuesday, October 3, at 1 p.m.;
Wednesday, October 4, 2023, at 1 p.m.
1. Strategic and Operational Items.
2. Financial and Personnel Items.
3. Administrative Items.
General Counsel Certification: The
General Counsel of the United States
Postal Service has certified that the
meeting may be closed under the
Government in the Sunshine Act.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
Date of required notice:
September 21, 2023.
DATES:
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
CONTACT PERSON FOR MORE INFORMATION:
Michael J. Elston, Secretary of the
Board, U.S. Postal Service, 475 L’Enfant
Plaza SW, Washington, DC 20260–1000;
Telephone: (202) 268–4800.
Michael J. Elston,
Secretary.
[FR Doc. 2023–20564 Filed 9–19–23; 11:15 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Advantage®
Product Change—Ground
Negotiated Service Agreement
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
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2023, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 8 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2023–267, CP2023–270.
SUPPLEMENTARY INFORMATION:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2023–20409 Filed 9–20–23; 8:45 am]
BILLING CODE 7710–12–P
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ACTION: Notice.
AGENCY:
POSTAL SERVICE
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice:
September 21, 2023.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 13,
2023, it filed with the Postal Regulatory
Commission a USPS Request to Add
Ground Advantage® Contract 3 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2023–268, CP2023–271.
SUMMARY:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2023–20410 Filed 9–20–23; 8:45 am]
ddrumheller on DSK120RN23PROD with NOTICES1
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
AGENCY:
Postal ServiceTM.
VerDate Sep<11>2014
17:11 Sep 20, 2023
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
SUMMARY:
Date of required notice:
September 21, 2023.
DATES:
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 14,
2023, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 53 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2023–266,
CP2023–269.
SUPPLEMENTARY INFORMATION:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2023–20411 Filed 9–20–23; 8:45 am]
BILLING CODE 7710–12–P
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98409; File No. SR–ISE–
2023–11]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove Proposed Rule
Change To Amend the Short Term
Option Series Program To Permit the
Listing of Two Wednesday Expirations
for Options on Certain Exchange
Traded Products
September 15, 2023.
I. Introduction
On May 31, 2023, Nasdaq ISE, LLC
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend the Exchange’s short term option
series program (‘‘Short Term Option
Series Program’’) in Supplementary
Material .03 of Options 4, Section 5
(Series of Options Contracts Open for
Trading). The proposed rule change was
published for comment in the Federal
Register on June 20, 2023.3 On August
2, 2023, pursuant to section 19(b)(2) of
the Act,4 the Commission designated a
longer period within which to approve
the proposed rule change, disapprove
the proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.5
The Commission did not receive any
comments. The Commission is
instituting proceedings pursuant to
section 19(b)(2)(B) of the Act 6 to
determine whether to approve or
disapprove the proposed rule change.
II. Description of the Proposed Rule
Change 7
Currently, the Exchange may open for
trading series of options on certain
symbols that expire at the close of
business on each of the next two
Mondays, Tuesdays, Wednesdays, and
Thursdays, respectively, that are
business days and are not business days
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 97719
(June 13, 2023), 88 FR 39876 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 98040,
88 FR 53569 (August 8, 2023) (designating
September 18, 2023, as the date by which the
Commission shall either approve, disapprove, or
institute proceedings to determine whether to
disapprove the proposed rule change).
6 15 U.S.C. 78s(b)(2)(B).
7 For a full description of the proposed rule
change, refer to the Notice, supra note 3.
2 17
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Federal Register / Vol. 88, No. 182 / Thursday, September 21, 2023 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
in which monthly options series or
Quarterly Options Series expire (‘‘Short
Term Option Daily Expirations’’).8 The
Exchange proposes to expand the Short
Term Option Series Program 9 to permit
the listing of two Wednesday
expirations for options on the United
States Oil Fund, LP, United States
Natural Gas Fund, LP, SPDR Gold
Shares, iShares Silver Trust, and iShares
20+ Year Treasury Bond ETF
(collectively, ‘‘Wednesday ETP
Expirations’’).10
According to the Exchange, the
Wednesday ETP Expirations would be
similar to the existing Short Term
Option Daily Expirations in that the
Exchange may open for trading on any
Tuesday or Wednesday that is a
business day (beyond the current
week) 11 series of options on the ETPs
that expire on any Wednesday of the
month that is a business day and is not
a Wednesday in which Quarterly
Options Series expire.12 And like Short
Term Option Daily Expirations, in the
event that Wednesday ETP Expirations
would expire on a Wednesday, and that
Wednesday is the same day that a
Quarterly Options Series expires, the
8 See Supplementary Material .03 to Options 4,
Section 5. Currently, the Exchange may list no more
than a total of two Monday and Wednesday
expirations on the iShares Russell 2000 ETF
(‘‘IWM’’) and no more than a total of two Monday,
Tuesday, Wednesday, and Thursday expirations on
the SPDR S&P 500 ETF Trust (‘‘SPY’’) and the
Invesco QQQ Trust (‘‘QQQ’’). See Table 1,
Supplementary Material .03 to Options 4, Section
5.
9 Options 1, Section 1(a)(49) provides that a Short
Term Option Series means a series in an option
class that is approved for listing and trading on the
Exchange in which the series is opened for trading
on any Monday, Tuesday, Wednesday, Thursday or
Friday that is a business day and that expires on
the Monday, Tuesday, Wednesday, Thursday, or
Friday of the following business week that is a
business day, or, in the case of a series that is listed
on a Friday and expires on a Monday, is listed one
business week and one business day prior to that
expiration. If a Tuesday, Wednesday, Thursday or
Friday is not a business day, the series may be
opened (or shall expire) on the first business day
immediately prior to that Tuesday, Wednesday,
Thursday or Friday. For a series listed pursuant to
this section for Monday expiration, if a Monday is
not a business day, the series shall expire on the
first business day immediately following that
Monday.
10 The United States Oil Fund, LP, United States
Natural Gas Fund, LP, SPDR Gold Shares, iShares
Silver Trust, and iShares 20+ Year Treasury Bond
ETF are referred to collectively as the ‘‘ETPs.’’
11 The Exchange proposes to clarify the rule text
in Supplementary Material .03 to Options 4, Section
5 to specify that it can list two Short Term Option
Expiration Dates beyond the current week for each
Monday, Tuesday, Wednesday, and Thursday
expiration. Consistent with the current operation of
the rule, the Exchange states that if it adds a
Wednesday expiration (‘‘Wednesday Expiration’’)
on a Tuesday, there would be three outstanding
Wednesday Expirations at one time. See Notice,
supra note 3, 88 FR at 39877, n.4.
12 See id. at 39877.
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17:11 Sep 20, 2023
Jkt 259001
Exchange would skip that week’s listing
and instead list the following week; the
two weeks would therefore not be
consecutive. Options on each of the
ETPs with Friday expirations would
continue to have a total of five Short
Term Option Expiration Dates, provided
those Friday expirations are not Fridays
in which monthly options series or
Quarterly Options Series expire. The
interval between strike prices for the
proposed Wednesday ETP Expirations
would be the same as those for the
current Short Term Option Series for
Friday expirations applicable to the
Short Term Option Series Program.13 As
is the case with other equity options
series listed pursuant to the Short Term
Option Series Program, the Wednesday
ETP Expirations series would be p.m.settled.
In support of its proposal, the
Exchange represents that it has an
adequate surveillance program in place
to detect manipulative trading in the
proposed option expirations, in the
same way that it monitors trading in the
current Short Term Option Daily
Expirations.14 The Exchange also
represents that it has the necessary
system capacity to support and properly
monitor trading in the proposed new
expirations.15 Additionally, the
Exchange states that it does not believe
that any market disruptions will be
encountered with the introduction of
these proposed option expirations.16
The Exchange currently trades Short
Term Option Daily Expirations on SPY,
QQQ, and IWM, including Wednesday
Expirations, and states that it has not
experienced any market disruptions nor
issues with capacity.17 Further, the
Exchange provides data comparing the
ETPs to SPY, QQQ, and IWM, which
have Wednesday Expirations today.18
According to the Exchange, the
occurrence of the ETPs moving through
at least one strike price after the close
of trading has been less frequent than
for SPY, QQQ, and IWM. In addition,
the average annualized closing volatility
in the last thirty minutes of trading for
the ETPs has historically been lower
than that of SPY, QQQ, and IWM.19
Finally, the Exchange states that the
ETPs trade within ‘‘complexes’’ where,
in addition to the underlying security,
13 The Wednesday ETP Expirations would have a
strike interval of $0.50 or greater for strike prices
below $100, $1 or greater for strike prices between
$100 and $150, and $2.50 or greater for strike prices
above $150.
14 See id. at 39884.
15 See id.
16 See id.
17 See id. at 39878.
18 See id. at 39882–83.
19 See id. at 39883.
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65209
there are multiple highly-correlated
instruments available for hedging.20
Therefore, the Exchange believes the
proposal would not be a strain on
liquidity providers.21
III. Proceedings To Determine Whether
To Approve or Disapprove SR–ISE–
2023–11, and Grounds for Disapproval
Under Consideration
The Commission is instituting
proceedings pursuant to section
19(b)(2)(B) of the Act 22 to determine
whether the proposed rule change
should be approved or disapproved.
Institution of such proceedings is
appropriate at this time in view of the
legal and policy issues raised by the
proposed rule change. Institution of
proceedings does not indicate that the
Commission has reached any
conclusions with respect to any of the
issues involved. Rather, as described
below, the Commission seeks and
encourages interested persons to
provide additional comment on the
proposed rule change to inform the
Commission’s analysis of whether to
approve or disapprove the proposed
rule change.
Pursuant to section 19(b)(2)(B) of the
Act,23 the Commission is providing
notice of the grounds for disapproval
under consideration. As described
above, the Exchange has proposed to
expand the Short Term Option Series
Program to permit the listing of
Wednesday ETP Expirations. The
Commission is instituting proceedings
to allow for additional analysis of, and
input from commenters with respect to,
the proposed rule change’s consistency
with the Act, and in particular, section
6(b)(5) of the Act, which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, 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.24
IV. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their data, views, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
20 See
id. at 39884.
id.
22 15 U.S.C. 78s(b)(2)(B).
23 Id.
24 15 U.S.C. 78f(b)(5).
21 See
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Federal Register / Vol. 88, No. 182 / Thursday, September 21, 2023 / Notices
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposed rule change, is consistent with
sections 6(b)(5) or any other provision of
the Act, or the rules and regulations
thereunder. Although there do not
appear to be any issues relevant to
approval or disapproval that would be
facilitated by an oral presentation of
data, views, and arguments, the
Commission will consider, pursuant to
Rule 19b–4 under the Act,25 any request
for an opportunity to make an oral
presentation.26
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposed rule change should be
approved or disapproved by October 12,
2023. Any person who wishes to file a
rebuttal to any other person’s
submission must file that rebuttal by
October 26, 2023. The Commission asks
that commenters address the sufficiency
of the Exchange’s statements in support
of the proposal, in addition to any other
comments they may wish to submit
about the proposed rule change.
Comments may be submitted by any
of the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
ISE–2023–11 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–ISE–2023–11. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
ddrumheller on DSK120RN23PROD with NOTICES1
25 17
CFR 240.19b–4.
19(b)(2) of the Act, as amended by the
Securities Acts Amendments of 1975, Public Law
94–29 (Jun. 4, 1975), grants to the Commission
flexibility to determine what type of proceeding—
either oral or notice and opportunity for written
comments—is appropriate for consideration of a
particular proposal by a self-regulatory
organization. See Securities Acts Amendments of
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
26 section
VerDate Sep<11>2014
17:11 Sep 20, 2023
Jkt 259001
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–ISE–2023–11 and should be
submitted by October 12, 2023. Rebuttal
comments should be submitted by
October 26, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–20425 Filed 9–20–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98410; File No. SR–MIAX–
2023–22]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Withdrawal of a
Proposed Rule Change To Amend
Exchange Rule 404, Series of Option
Contracts Open for Trading, To
Implement a Low Priced Stock Strike
Price Interval Program
September 15, 2023.
On June 5, 2023, Miami International
Securities Exchange, LLC (‘‘MIAX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend Exchange Rule 404, Series of
Option Contracts Open for Trading.
Specifically, the Exchange proposed to
adopt Interpretations and Policies .12 to
27 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Rule 404 to implement a new strike
interval program for stocks that are
priced less than $2.50 and have open
interest equal to or greater than 1,000
contracts. The proposed rule change
was published for comment in the
Federal Register on June 22, 2023.3 On
August 4, 2023, pursuant to section
19(b)(2) of the Act,4 the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.5 On September 14, 2023,
the Exchange withdrew the proposed
rule change (MIAX–2023–22).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–20428 Filed 9–20–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98407; File No. SR–ICEEU–
2023–023]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to the
Amendments the Futures and Options
Risk Procedures
September 15, 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
31, 2023, ICE Clear Europe Limited
(‘‘ICE Clear Europe’’ or the ‘‘Clearing
House’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule changes described in
Items I, II and III below, which Items
have been primarily prepared by ICE
Clear Europe. ICE Clear Europe filed the
proposed rule change pursuant to
section 19(b)(3)(A) 3 of the Act and Rule
3 See Securities Exchange Act Release No. 97733
(June 15, 2023), 88 FR 40887. Comments on the
proposed rule change are available at: https://
www.sec.gov/comments/sr-miax-2023-22/
srmiax202322.htm.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 98058,
88 FR 54361 (August 10, 2023). The Commission
designated September 20, 2023 as the date by which
the Commission shall approve or disapprove, or
institute proceedings to determine whether to
disapprove, the proposed rule change.
6 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
E:\FR\FM\21SEN1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 182 (Thursday, September 21, 2023)]
[Notices]
[Pages 65208-65210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-20425]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98409; File No. SR-ISE-2023-11]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Instituting
Proceedings To Determine Whether To Approve or Disapprove Proposed Rule
Change To Amend the Short Term Option Series Program To Permit the
Listing of Two Wednesday Expirations for Options on Certain Exchange
Traded Products
September 15, 2023.
I. Introduction
On May 31, 2023, Nasdaq ISE, LLC (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to amend the
Exchange's short term option series program (``Short Term Option Series
Program'') in Supplementary Material .03 of Options 4, Section 5
(Series of Options Contracts Open for Trading). The proposed rule
change was published for comment in the Federal Register on June 20,
2023.\3\ On August 2, 2023, pursuant to section 19(b)(2) of the Act,\4\
the Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\ The Commission did not receive any comments. The Commission
is instituting proceedings pursuant to section 19(b)(2)(B) of the Act
\6\ to determine whether to approve or disapprove the proposed rule
change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 97719 (June 13,
2023), 88 FR 39876 (``Notice'').
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 98040, 88 FR 53569
(August 8, 2023) (designating September 18, 2023, as the date by
which the Commission shall either approve, disapprove, or institute
proceedings to determine whether to disapprove the proposed rule
change).
\6\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change \7\
---------------------------------------------------------------------------
\7\ For a full description of the proposed rule change, refer to
the Notice, supra note 3.
---------------------------------------------------------------------------
Currently, the Exchange may open for trading series of options on
certain symbols that expire at the close of business on each of the
next two Mondays, Tuesdays, Wednesdays, and Thursdays, respectively,
that are business days and are not business days
[[Page 65209]]
in which monthly options series or Quarterly Options Series expire
(``Short Term Option Daily Expirations'').\8\ The Exchange proposes to
expand the Short Term Option Series Program \9\ to permit the listing
of two Wednesday expirations for options on the United States Oil Fund,
LP, United States Natural Gas Fund, LP, SPDR Gold Shares, iShares
Silver Trust, and iShares 20+ Year Treasury Bond ETF (collectively,
``Wednesday ETP Expirations'').\10\
---------------------------------------------------------------------------
\8\ See Supplementary Material .03 to Options 4, Section 5.
Currently, the Exchange may list no more than a total of two Monday
and Wednesday expirations on the iShares Russell 2000 ETF (``IWM'')
and no more than a total of two Monday, Tuesday, Wednesday, and
Thursday expirations on the SPDR S&P 500 ETF Trust (``SPY'') and the
Invesco QQQ Trust (``QQQ''). See Table 1, Supplementary Material .03
to Options 4, Section 5.
\9\ Options 1, Section 1(a)(49) provides that a Short Term
Option Series means a series in an option class that is approved for
listing and trading on the Exchange in which the series is opened
for trading on any Monday, Tuesday, Wednesday, Thursday or Friday
that is a business day and that expires on the Monday, Tuesday,
Wednesday, Thursday, or Friday of the following business week that
is a business day, or, in the case of a series that is listed on a
Friday and expires on a Monday, is listed one business week and one
business day prior to that expiration. If a Tuesday, Wednesday,
Thursday or Friday is not a business day, the series may be opened
(or shall expire) on the first business day immediately prior to
that Tuesday, Wednesday, Thursday or Friday. For a series listed
pursuant to this section for Monday expiration, if a Monday is not a
business day, the series shall expire on the first business day
immediately following that Monday.
\10\ The United States Oil Fund, LP, United States Natural Gas
Fund, LP, SPDR Gold Shares, iShares Silver Trust, and iShares 20+
Year Treasury Bond ETF are referred to collectively as the ``ETPs.''
---------------------------------------------------------------------------
According to the Exchange, the Wednesday ETP Expirations would be
similar to the existing Short Term Option Daily Expirations in that the
Exchange may open for trading on any Tuesday or Wednesday that is a
business day (beyond the current week) \11\ series of options on the
ETPs that expire on any Wednesday of the month that is a business day
and is not a Wednesday in which Quarterly Options Series expire.\12\
And like Short Term Option Daily Expirations, in the event that
Wednesday ETP Expirations would expire on a Wednesday, and that
Wednesday is the same day that a Quarterly Options Series expires, the
Exchange would skip that week's listing and instead list the following
week; the two weeks would therefore not be consecutive. Options on each
of the ETPs with Friday expirations would continue to have a total of
five Short Term Option Expiration Dates, provided those Friday
expirations are not Fridays in which monthly options series or
Quarterly Options Series expire. The interval between strike prices for
the proposed Wednesday ETP Expirations would be the same as those for
the current Short Term Option Series for Friday expirations applicable
to the Short Term Option Series Program.\13\ As is the case with other
equity options series listed pursuant to the Short Term Option Series
Program, the Wednesday ETP Expirations series would be p.m.-settled.
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\11\ The Exchange proposes to clarify the rule text in
Supplementary Material .03 to Options 4, Section 5 to specify that
it can list two Short Term Option Expiration Dates beyond the
current week for each Monday, Tuesday, Wednesday, and Thursday
expiration. Consistent with the current operation of the rule, the
Exchange states that if it adds a Wednesday expiration (``Wednesday
Expiration'') on a Tuesday, there would be three outstanding
Wednesday Expirations at one time. See Notice, supra note 3, 88 FR
at 39877, n.4.
\12\ See id. at 39877.
\13\ The Wednesday ETP Expirations would have a strike interval
of $0.50 or greater for strike prices below $100, $1 or greater for
strike prices between $100 and $150, and $2.50 or greater for strike
prices above $150.
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In support of its proposal, the Exchange represents that it has an
adequate surveillance program in place to detect manipulative trading
in the proposed option expirations, in the same way that it monitors
trading in the current Short Term Option Daily Expirations.\14\ The
Exchange also represents that it has the necessary system capacity to
support and properly monitor trading in the proposed new
expirations.\15\ Additionally, the Exchange states that it does not
believe that any market disruptions will be encountered with the
introduction of these proposed option expirations.\16\ The Exchange
currently trades Short Term Option Daily Expirations on SPY, QQQ, and
IWM, including Wednesday Expirations, and states that it has not
experienced any market disruptions nor issues with capacity.\17\
Further, the Exchange provides data comparing the ETPs to SPY, QQQ, and
IWM, which have Wednesday Expirations today.\18\ According to the
Exchange, the occurrence of the ETPs moving through at least one strike
price after the close of trading has been less frequent than for SPY,
QQQ, and IWM. In addition, the average annualized closing volatility in
the last thirty minutes of trading for the ETPs has historically been
lower than that of SPY, QQQ, and IWM.\19\ Finally, the Exchange states
that the ETPs trade within ``complexes'' where, in addition to the
underlying security, there are multiple highly-correlated instruments
available for hedging.\20\ Therefore, the Exchange believes the
proposal would not be a strain on liquidity providers.\21\
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\14\ See id. at 39884.
\15\ See id.
\16\ See id.
\17\ See id. at 39878.
\18\ See id. at 39882-83.
\19\ See id. at 39883.
\20\ See id. at 39884.
\21\ See id.
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III. Proceedings To Determine Whether To Approve or Disapprove SR-ISE-
2023-11, and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to section
19(b)(2)(B) of the Act \22\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide
additional comment on the proposed rule change to inform the
Commission's analysis of whether to approve or disapprove the proposed
rule change.
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\22\ 15 U.S.C. 78s(b)(2)(B).
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Pursuant to section 19(b)(2)(B) of the Act,\23\ the Commission is
providing notice of the grounds for disapproval under consideration. As
described above, the Exchange has proposed to expand the Short Term
Option Series Program to permit the listing of Wednesday ETP
Expirations. The Commission is instituting proceedings to allow for
additional analysis of, and input from commenters with respect to, the
proposed rule change's consistency with the Act, and in particular,
section 6(b)(5) of the Act, which requires, among other things, that
the rules of a national securities exchange be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, 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.\24\
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\23\ Id.
\24\ 15 U.S.C. 78f(b)(5).
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IV. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their data, views, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the
[[Page 65210]]
proposal. In particular, the Commission invites the written views of
interested persons concerning whether the proposed rule change, is
consistent with sections 6(b)(5) or any other provision of the Act, or
the rules and regulations thereunder. Although there do not appear to
be any issues relevant to approval or disapproval that would be
facilitated by an oral presentation of data, views, and arguments, the
Commission will consider, pursuant to Rule 19b-4 under the Act,\25\ any
request for an opportunity to make an oral presentation.\26\
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\25\ 17 CFR 240.19b-4.
\26\ section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (Jun. 4, 1975), grants to
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Acts Amendments of 1975,
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75,
94th Cong., 1st Sess. 30 (1975).
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Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change should be approved
or disapproved by October 12, 2023. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
October 26, 2023. The Commission asks that commenters address the
sufficiency of the Exchange's statements in support of the proposal, in
addition to any other comments they may wish to submit about the
proposed rule change.
Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-ISE-2023-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-ISE-2023-11. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-ISE-2023-11 and should be
submitted by October 12, 2023. Rebuttal comments should be submitted by
October 26, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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\27\ 17 CFR 200.30-3(a)(57).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-20425 Filed 9-20-23; 8:45 am]
BILLING CODE 8011-01-P
