Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade Shares of the Pando Asset Spot Bitcoin Trust Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares, 21310-21312 [2024-06459]
Download as PDF
<![CDATA[
21310
Federal Register / Vol. 89, No. 60 / Wednesday, March 27, 2024 / Notices
information and instead adopt
alternative payment arrangements.
The Exchange also does not believe
that the proposal will create an
intramarket burden on competition,
since the proposed direct debit process
will be applied equally to all member
organizations. Moreover, other
exchanges utilize a similar process
which the Exchange believes is
generally familiar to member
organizations. Consequently, the
Exchange does not believe that the
proposal raises any new or novel issues
that have not been previously
considered by the Commission in
connection with direct debit and billing
policies of other exchanges. Further,
this proposal is expected to provide a
cost savings to the Exchange in that it
would alleviate administrative
processes related to the collection of
monies owed to the Exchange. In
addition, the debiting process would
mitigate against member organization
accounts becoming overdue.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
khammond on DSKJM1Z7X2PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder.13 Because the
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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),15 the Commission
may designate a shorter time if such
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
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17:03 Mar 26, 2024
action is consistent with the protection
of investors and the public interest.
At any time within 60 days of the
filing of such 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 shall institute proceedings
under Section 19(b)(2)(B) 16 of the Act 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:
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–
NYSEAMER–2024–19 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–NYSEAMER–2024–19. 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
16 15
Jkt 262001
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00078
Fmt 4703
Sfmt 4703
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–NYSEAMER–2024–19 and should
be submitted on or before April 17,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06455 Filed 3–26–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99833; File No. SR–
CboeBZX–2023–101]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change To List and Trade Shares
of the Pando Asset Spot Bitcoin Trust
Under BZX Rule 14.11(e)(4),
Commodity-Based Trust Shares
March 21, 2024.
On December 5, 2023, Cboe BZX
Exchange, Inc. (‘‘BZX’’ 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 list and trade shares
(‘‘Shares’’) of the Pando Asset Spot
Bitcoin Trust (‘‘Trust’’) under BZX Rule
14.11(e)(4), Commodity-Based Trust
Shares. The proposed rule change was
published for comment in the Federal
Register on December 22, 2023.3
On February 1, 2024, 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
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 99197
(Dec. 22, 2023), 88 FR 88668 (‘‘Notice’’). Comments
on the proposed rule change are available at https://
www.sec.gov/comments/sr-cboebzx-2023-101/
srcboebzx2023101.htm.
4 15 U.S.C. 78s(b)(2).
1 15
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Federal Register / Vol. 89, No. 60 / Wednesday, March 27, 2024 / Notices
any of the issues involved. Rather, as
described below, the Commission seeks
and encourages interested persons to
provide comments on the proposed rule
change.
Pursuant to Section 19(b)(2)(B) of the
I. Summary of the Proposal
Act,14 the Commission is providing
As described in more detail in the
notice of the grounds for disapproval
Notice,7 the Exchange proposes to list
under consideration. The Commission is
and trade the Shares of the Trust under
instituting proceedings to allow for
BZX Rule 14.11(e)(4), which governs the additional analysis of the proposed rule
listing and trading of Commodity-Based change’s consistency with Section
Trust Shares on the Exchange.
6(b)(5) of the Act, which requires,
The investment objective of the Trust
among other things, that the rules of a
is to generally reflect the performance of national securities exchange be
the price of bitcoin before payment of
‘‘designed to prevent fraudulent and
the Trust’s expenses.8 The Trust’s assets manipulative acts and practices’’ and
will consist of bitcoin held by the
‘‘to protect investors and the public
Trust’s bitcoin custodian on behalf of
interest.’’ 15
the Trust and cash holdings, if any.9 The
The Commission asks that
Trust will value its Shares daily based
commenters address the sufficiency of
on the value of bitcoin as reflected by
the Exchange’s statements in support of
the CME CF Bitcoin Reference Rate
the proposal, which are set forth in the
(‘‘Index’’).10 The administrator for the
Notice, in addition to any other
Trust will determine the net asset value comments they may wish to submit
about the proposed rule change. In
(‘‘NAV’’) of the Trust on each day that
the Exchange is open for regular trading, particular, the Commission seeks
commenters’ views on whether the
as promptly as practicable after 4:00
Exchange has sufficiently described the
p.m. ET.11 In determining the Trust’s
Trust, the terms of the Trust, and
NAV, the administrator for the Trust
representations that would apply to the
will value the bitcoin held by the Trust
Trust, including the applicable listing
based on the price set by the Index as
standards.
of 4:00 p.m. ET.12
proposed rule change.5 This order
institutes proceedings under Section
19(b)(2)(B) of the Act 6 to determine
whether to approve or disapprove the
proposed rule change.
khammond on DSKJM1Z7X2PROD with NOTICES
II. Proceedings To Determine Whether
To Approve or Disapprove SR–
CboeBZX–2023–101 and Grounds for
Disapproval Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Act 13 to determine
whether the proposed rule change
should be approved or disapproved.
Institution of proceedings is appropriate
at this time in view of the legal and
policy issues raised by the proposed
rule change, as discussed below.
Institution of proceedings does not
indicate that the Commission has
reached any conclusions with respect to
5 See Securities Exchange Act Release No. 99460,
89 FR 8472 (Feb. 7, 2024). The Commission
designated March 21, 2024, as the date by which
the Commission shall approve or disapprove, or
institute proceedings to determine whether to
disapprove, the proposed rule change.
6 15 U.S.C. 78s(b)(2)(B).
7 See Notice, supra note 3.
8 See id. at 88677. Pando Asset AG (‘‘Sponsor’’)
is the sponsor of the Trust. See id. at 88669. Donald
J. Puglisi is the trustee of the Trust. See id. at 88676.
9 See id. at 88676. In seeking to achieve its
investment objective, the Trust will only hold
bitcoin, cash and cash equivalents. Coinbase
Custody Trust Company, LLC will be responsible
for custody of the Trust’s bitcoin holdings. See id.
at 88669, 88677.
10 See id. at 88677.
11 See id.
12 See id.
13 15 U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
17:03 Mar 26, 2024
Jkt 262001
III. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their views, data, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposal is consistent with Section
6(b)(5) or any other provision of the Act,
and 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
views, data, and arguments, the
Commission will consider, pursuant to
Rule 19b–4, any request for an
opportunity to make an oral
presentation.16
14 Id.
15 15
U.S.C. 78f(b)(5).
19(b)(2) of the Act, as amended by the
Securities Acts Amendments of 1975, Public Law
94–29 (June 4, 1975), grants 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).
16 Section
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
21311
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposed rule change should be
approved or disapproved by April 17,
2024. Any person who wishes to file a
rebuttal to any other person’s
submission must file that rebuttal by
May 1, 2024.
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–
CboeBZX–2023–101 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–CboeBZX–2023–101. 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–CboeBZX–2023–101 and should be
submitted on or before April 17, 2024.
Rebuttal comments should be submitted
by May 1, 2024.
E:\FR\FM\27MRN1.SGM
27MRN1
21312
Federal Register / Vol. 89, No. 60 / Wednesday, March 27, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–06459 Filed 3–26–24; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99823; File No. SR–
PEARL–2024–14]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX Pearl
Options Exchange Fee Schedule To
Modify Certain Connectivity and Port
Fees
March 21, 2024.
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 March 11,
2024, MIAX PEARL, LLC (‘‘MIAX Pearl’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III 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.
khammond on DSKJM1Z7X2PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the MIAX Pearl Options
Exchange Fee Schedule (the ‘‘Fee
Schedule’’) to amend certain
connectivity and port fees.3
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings, at MIAX Pearl’s principal office,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
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
17 17
CFR 200.30–3(a)(57).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 All references to the ‘‘Exchange’’ in this filing
mean MIAX Pearl Options. Any references to the
equities trading facility of MIAX PEARL, LLC, will
specifically be referred to as ‘‘MIAX Pearl Equities.’’
1 15
VerDate Sep<11>2014
17:03 Mar 26, 2024
Jkt 262001
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
The Exchange proposes to amend the
Fee Schedule as follows: (1) increase the
fees for a 10 gigabit (‘‘Gb’’) ultra-low
latency (‘‘ULL’’) fiber connection for
Members 4 and non-Members; (2) amend
the calculation of fees for MIAX Express
Network Full Service (‘‘MEO’’) 5 Ports
(Bulk and Single); and (3) amend the
fees for Full Service MEO Ports (Bulk
and Single). The Exchange and its
affiliate, Miami International Securities
Exchange, LLC (‘‘MIAX’’) operated 10Gb
ULL connectivity on a single shared
network that provided access to both
exchanges via a single 10Gb ULL
connection.
Beginning in January 2023, the
Exchange determined a substantial
operational need to no longer operate
10Gb ULL connectivity on a single
shared network with MIAX. The
Exchange bifurcated 10Gb ULL
connectivity due to ever-increasing
capacity constraints and to enable it to
continue to satisfy the anticipated
access needs for Members and other
market participants.6 The Exchange has
experienced ongoing increases in
expenses in recent years. As discussed
more fully below, the Exchange recently
calculated annual aggregate costs of
$15,593,990 for providing 10Gb ULL
connectivity on a single unshared
network (an overall increase over its
prior cost to provide 10Gb ULL
connectivity on a shared network with
4 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
5 The term ‘‘MEO Interface’’ or ‘‘MEO’’ means a
binary order interface for certain order types as set
forth in Rule 516 into the MIAX Pearl System. See
the Definitions Section of the Fee Schedule and
Exchange Rule 100.
6 See MIAX Options and MIAX Pearl Options—
Announce planned network changes related to
shared 10G ULL extranet, issued August 12, 2022,
available at https://www.miaxglobal.com/alert/
2022/08/12/miax-options-and-miax-pearl-optionsannounce-planned-network-changes-0. The
Exchange will continue to provide access to both
the Exchange and MIAX over a single shared 1Gb
connection. See Securities Exchange Act Release
Nos. 96553 (December 20, 2022), 87 FR 79379
(December 27, 2022) (SR–PEARL–2022–60); 96545
(December 20, 2022) 87 FR 79393 (December 27,
2022) (SR–MIAX–2022–48).
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
MIAX) and $1,989,497 for providing
Full Service MEO Ports.7
Much of the cost relates to monitoring
and analysis of data and performance of
the network via the subscriber’s
connection with nanosecond
granularity, and continuous
improvements in network performance
with the goal of improving the
subscriber’s experience. The costs
associated with maintaining and
enhancing a state-of-the-art network is a
significant expense for the Exchange,
and thus the Exchange believes that it
is reasonable and appropriate to help
offset those increased costs by amending
fees for connectivity services.
Subscribers expect the Exchange to
provide this level of support so they
continue to receive the performance
they expect. This differentiates the
Exchange from its competitors.
The Exchange now proposes to amend
the Fee Schedule to amend the fees for
10Gb ULL connectivity and Full Service
MEO Ports (Bulk and Single) in order to
recoup cost related to bifurcating 10Gb
connectivity to the Exchange and MIAX
as well as the ongoing costs and
increase in expenses set forth below in
the Exchange’s cost analysis.8 While the
proposed fee changes are immediately
effective, the Exchange notes that a
version of the proposed fee changes has
been effective since January 1, 2023
pursuant to the Exchange’s initially
filed proposal on December 30, 2022
(the ‘‘Initial Proposal’’).9 On February
23, 2023, the Exchange withdrew the
Initial Proposal and replaced it with a
revised proposal (the ‘‘Second
Proposal’’).10 On April 20, 2023, the
Exchange withdrew the Second
Proposal and replaced it with a revised
proposal (the ‘‘Third Proposal’’).11 On
June 16, 2023, the Exchange withdrew
the Third Proposal and replaced it with
a revised proposal (the ‘‘Fourth
Proposal’’).12 On August 8, 2023, the
7 For the avoidance of doubt, all references to
costs in this filing, including the cost categories
discussed below, refer to costs incurred by MIAX
Pearl Options only and not MIAX Pearl Equities,
the equities trading facility.
8 The Exchange notes that MIAX will make a
similar filing to increase its 10Gb ULL connectivity
fees.
9 See Securities Exchange Act Release No. 96632
(January 10, 2023), 88 FR 2707 (January 17, 2023)
(SR–PEARL–2022–62).
10 See Securities Exchange Act Release No. 97082
(March 8, 2023), 88 FR 15825 (March 14, 2023) (SR–
PEARL–2023–05).
11 See Securities Exchange Act Release No. 97420
(May 2, 2023), 88 FR 29701 (May 8, 2023) (SR–
PEARL–2023–19).
12 The Exchange met with Commission Staff to
discuss the Third Proposal during which the
Commission Staff provided feedback and requested
additional information, including, most recently,
information about total costs related to certain third
E:\FR\FM\27MRN1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 60 (Wednesday, March 27, 2024)]
[Notices]
[Pages 21310-21312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06459]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99833; File No. SR-CboeBZX-2023-101]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change To List and Trade Shares of the Pando Asset Spot
Bitcoin Trust Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares
March 21, 2024.
On December 5, 2023, Cboe BZX Exchange, Inc. (``BZX'' 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 list and trade shares (``Shares'') of the Pando
Asset Spot Bitcoin Trust (``Trust'') under BZX Rule 14.11(e)(4),
Commodity-Based Trust Shares. The proposed rule change was published
for comment in the Federal Register on December 22, 2023.\3\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 99197 (Dec. 22,
2023), 88 FR 88668 (``Notice''). Comments on the proposed rule
change are available at https://www.sec.gov/comments/sr-cboebzx-2023-101/srcboebzx2023101.htm.
---------------------------------------------------------------------------
On February 1, 2024, 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
[[Page 21311]]
proposed rule change.\5\ This order institutes proceedings under
Section 19(b)(2)(B) of the Act \6\ to determine whether to approve or
disapprove the proposed rule change.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 99460, 89 FR 8472
(Feb. 7, 2024). The Commission designated March 21, 2024, as the
date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to disapprove, the
proposed rule change.
\6\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
I. Summary of the Proposal
As described in more detail in the Notice,\7\ the Exchange proposes
to list and trade the Shares of the Trust under BZX Rule 14.11(e)(4),
which governs the listing and trading of Commodity-Based Trust Shares
on the Exchange.
---------------------------------------------------------------------------
\7\ See Notice, supra note 3.
---------------------------------------------------------------------------
The investment objective of the Trust is to generally reflect the
performance of the price of bitcoin before payment of the Trust's
expenses.\8\ The Trust's assets will consist of bitcoin held by the
Trust's bitcoin custodian on behalf of the Trust and cash holdings, if
any.\9\ The Trust will value its Shares daily based on the value of
bitcoin as reflected by the CME CF Bitcoin Reference Rate
(``Index'').\10\ The administrator for the Trust will determine the net
asset value (``NAV'') of the Trust on each day that the Exchange is
open for regular trading, as promptly as practicable after 4:00 p.m.
ET.\11\ In determining the Trust's NAV, the administrator for the Trust
will value the bitcoin held by the Trust based on the price set by the
Index as of 4:00 p.m. ET.\12\
---------------------------------------------------------------------------
\8\ See id. at 88677. Pando Asset AG (``Sponsor'') is the
sponsor of the Trust. See id. at 88669. Donald J. Puglisi is the
trustee of the Trust. See id. at 88676.
\9\ See id. at 88676. In seeking to achieve its investment
objective, the Trust will only hold bitcoin, cash and cash
equivalents. Coinbase Custody Trust Company, LLC will be responsible
for custody of the Trust's bitcoin holdings. See id. at 88669,
88677.
\10\ See id. at 88677.
\11\ See id.
\12\ See id.
---------------------------------------------------------------------------
II. Proceedings To Determine Whether To Approve or Disapprove SR-
CboeBZX-2023-101 and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \13\ to determine whether the proposed rule
change should be approved or disapproved. Institution of proceedings is
appropriate at this time in view of the legal and policy issues raised
by the proposed rule change, as discussed below. 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 comments on the proposed rule change.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
Pursuant to Section 19(b)(2)(B) of the Act,\14\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with 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'' and ``to protect investors and the
public interest.'' \15\
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\14\ Id.
\15\ 15 U.S.C. 78f(b)(5).
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The Commission asks that commenters address the sufficiency of the
Exchange's statements in support of the proposal, which are set forth
in the Notice, in addition to any other comments they may wish to
submit about the proposed rule change. In particular, the Commission
seeks commenters' views on whether the Exchange has sufficiently
described the Trust, the terms of the Trust, and representations that
would apply to the Trust, including the applicable listing standards.
III. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5) or any other provision of the Act, and
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 views, data, and arguments, the
Commission will consider, pursuant to Rule 19b-4, any request for an
opportunity to make an oral presentation.\16\
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\16\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants 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 April 17, 2024. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
May 1, 2024.
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-CboeBZX-2023-101 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-CboeBZX-2023-101. 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-CboeBZX-2023-101 and should
be submitted on or before April 17, 2024. Rebuttal comments should be
submitted by May 1, 2024.
[[Page 21312]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06459 Filed 3-26-24; 8:45 am]
BILLING CODE 8011-01-P
