Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Approving a Proposed Rule Change To Amend the Short Term Option Series Program, 27471-27472 [2024-08092]

Download as PDF Federal Register / Vol. 89, No. 75 / Wednesday, April 17, 2024 / Notices notice by May 17, 2024 to (i) MBX.OMB.OIRA.SEC_desk_officer@ omb.eop.gov and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/ o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@sec.gov. Dated: April 11, 2024. Vanessa A. Countryman, Secretary. [FR Doc. 2024–08096 Filed 4–16–24; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–99946; File No. SR–ISE– 2024–06] Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Approving a Proposed Rule Change To Amend the Short Term Option Series Program April 11, 2024. lotter on DSK11XQN23PROD with NOTICES1 I. Introduction On February 15, 2024, Nasdaq ISE, LLC (‘‘ISE’’ 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 Supplementary Material .03 of Options 4, Section 5, ‘‘Series of Options Contracts Open for Trading’’ to allow Tuesday and Thursday expirations for options listed pursuant to the Exchange’s short term option series program (‘‘Short Term Option Series Program’’) on the iShares Russell 2000 ETF (‘‘IWM’’). The proposed rule change was published for comment in the Federal Register on March 1, 2024.3 The Commission did not receive any comments on the proposal. This order approves the proposed rule change. II. Description of the Proposal 4 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 beyond the current week and are not business days in which standard expiration options series, Monthly Options Series, or Quarterly 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Release No. 99604 (February 26, 2024), 89 FR 15235 (‘‘Notice’’). 4 For a full description of the proposal, refer to the Notice, supra note 3. 2 17 VerDate Sep<11>2014 17:10 Apr 16, 2024 Jkt 262001 Options Series expire (‘‘Short Term Option Daily Expirations’’).5 Table 1 in Supplementary Material .03 to Options 4, Section 5 specifies each symbol that qualifies as a Short Term Option Daily Expiration as well as the permitted expiration days.6 Today, the Exchange may list no more than a total of two Monday and Wednesday expirations on 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’’).7 The Exchange proposes to expand the Short Term Option Series Program to permit the Exchange to open for trading on any Monday or Tuesday that is a business day series of options on IWM that expire at the close of business on each of the next two Tuesdays beyond the current week that are business days and are not business days in which standard expiration options series, Monthly Options Series, or Quarterly Options Series expire (‘‘Tuesday Expirations’’). If the Tuesday Expiration falls on a Tuesday that is not a business day, the series shall expire on the first business day immediately prior to that Tuesday.8 Similarly, the proposal would permit the Exchange to open for trading on any Wednesday or Thursday that is a business day series of options on IWM that expire at the close of business on each of the next two Thursdays beyond the current week that are business days and are not business days in which standard expiration options series, Monthly Options Series, or Quarterly Options Series expire (‘‘Thursday Expirations’’). If the Thursday Expiration falls on a Thursday that is not a business day, the series shall expire on the first business day immediately prior to that Thursday. The listing and trading of Tuesday and Thursday Expirations would be subject to Supplementary Material .03 of Options 4, Section 5.9 The Exchange does not believe that any market disruptions would be encountered with the introduction of Tuesday and Thursday Expirations.10 The Exchange states there are no material differences in the treatment of Tuesday and Thursday SPY and QQQ 5 See Supplementary .03 to Options 4, Section 5. Table 1, Supplementary .03 to Options 4, Section 5. 7 See id. 8 The Exchange proposes to amend the Tuesday and Thursday expirations for IWM in Table 1 in Supplementary Material .03 to Options 4, Section 5 from ‘‘0’’ to ‘‘2’’ to permit Tuesday and Thursday expirations for options on IWM listed pursuant to the Short Term Option Series. 9 See Notice, supra note 3 at 15236. 10 See Notice, supra note 3 at 15237. 6 See PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 27471 Short Term Daily Expirations as compared to the proposed Tuesday and Thursday Expirations.11 The Exchange believes that it has the necessary capacity and surveillance programs in place to support and properly monitor trading in the proposed Tuesday and Thursday Expirations.12 The Exchange currently trades Short Term Option Series that expire Monday and Wednesday for SPY, QQQ, and IWM and stated that it has not experienced any market disruptions nor issues with capacity.13 III. Discussion and Commission’s Findings The Commission has carefully reviewed the proposed rule change and finds that it is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange and, in particular, the requirements of Section 6(b) of the Act.14 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,15 which requires, among other things, that the Exchange’s rules 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. The Commission believes that the proposed rule change is reasonably designed as a limited expansion of the Short Term Options Series Program and may provide the investing public and other market participants more flexibility to closely tailor their investment and hedging decisions in IWM options, thus allowing them to better manage their risk exposure. In addition, the Exchange has similar rules permitting the listing and trading of Tuesday and Thursday expirations on SPY and QQQ.16 In approving the proposal, the Commission notes that the Exchange 11 See Notice, supra note 3 at 15239. In addition, the Exchange states Cboe Exchange, Inc. began listing Tuesday and Thursday expirations in the Russell 2000 Index Weeklys and Mini-Russell 2000 Index Weeklys on January 8, 2024. See Notice, supra note 3 at 15236. 12 See Notice, supra note 3 at 15237. 13 See id. 14 15 U.S.C. 78f. In approving this proposed rule change, the Commission has considered the proposed rule change’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 15 15 U.S.C. 78f(b)(5). 16 See Supplementary .03 to Options 4, Section 5. See also Securities Exchange Release No. 96281 (November 9, 2022), 87 FR 68769 (November 16, 2022) (order approving Tuesday and Thursday expirations on SPY and QQQ). E:\FR\FM\17APN1.SGM 17APN1 27472 Federal Register / Vol. 89, No. 75 / Wednesday, April 17, 2024 / Notices has represented that it has an adequate surveillance program in place to detect manipulative trading in Tuesday IWM Expirations and Thursday IWM Expirations.17 The Exchange further states that it has the necessary systems capacity to support the new options series.18 The Exchange also states that it has not experienced any market disruptions nor issues with capacity with trading Short Term Option Series that expire on Tuesdays and Thursdays for SPY and QQQ.19 Accordingly, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act 20 and the rules and regulations thereunder applicable to a national securities exchange. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,21 that the proposed rule change (SR–ISE–2024–06) be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.22 Vanessa A. Countryman, Secretary. [FR Doc. 2024–08092 Filed 4–16–24; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–613, OMB Control No. 3235–0712] lotter on DSK11XQN23PROD with NOTICES1 Proposed Collection; Comment Request; Extension: Credit Risk Retention—Regulation RR Upon Written Request Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Credit Risk Retention (‘‘Regulation RR’’) (17 CFR 246.1 through 246.22) recordkeeping and disclosure 17 See Notice, supra note 3 at 15239. id. 19 See Notice, supra note 3 at 15237. 20 15 U.S.C. 78f(b)(5). 21 15 U.S.C. 78s(b)(2). 22 17 CFR 200.30–3(a)(12). 18 See VerDate Sep<11>2014 17:10 Apr 16, 2024 Jkt 262001 requirements implement Section 15G of the Securities Exchange Act of 1934 (15 U.S.C. 78o–11) Section 15G clarifies the scope and application of Section 306(a) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7244(a)). Section 306(a) of the Sarbanes-Oxley Act requires, among other things, an issuer to provide timely notice to its directors and executive officers and to the Commission of the imposition of a blackout period that would trigger a trading prohibition under Section 306(a)(1) of the SarbanesOxley Act. Section 306(a)(1) prohibits any director or executive officer of an issuer of any equity security, from directly or indirectly, purchasing, selling, or otherwise acquiring or transferring any equity security of that issuer during the blackout period with respect to such equity security if the director or executive officer acquired the equity security in connection with his or her service or employment. Approximately 1,647 issuers file using Regulation RR responses and it takes approximately 14.389 hours per response. We estimate that 75% of the 14.389 hours per response (10.792 per response hours) is prepared by the registrant for a total annual reporting burden of 17,774 hours (10.792 hours per response × 1,647 responses). Written comments are invited on: (a) whether this proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden imposed by the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication by June 17, 2024. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Please direct your written comment to David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549 or send an email to: PRA_ Mailbox@sec.gov. PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 Dated: April 11, 2024. Vanessa A. Countryman, Secretary. [FR Doc. 2024–08097 Filed 4–16–24; 8:45 am] BILLING CODE 8011–01–P SOCIAL SECURITY ADMINISTRATION [Docket No. SSA 2024–0008] Notice of Subscription Tier Structure Change for Our Electronic Consent Based Social Security Number Verification Service Social Security Administration. Notice of subscription tier structure change. AGENCY: ACTION: The Social Security Administration (SSA) is announcing a revision in the upper transactions limit to the upper subscription tier for the electronic Consent Based Social Security Number (SSN) Verification (eCBSV) service. In accordance with statutory requirements, a permitted entity (PE) is required to provide payment to reimburse SSA for the development and support of the eCBSV system. DATES: Applicability date for subscription tier structure change: The revised subscription tier structure will go into effect for subscription payments made on or after April 22, 2024. SUPPLEMENTARY INFORMATION: Section 215 of the Economic Growth, Regulatory Relief, and Consumer Protection Act 1 (the Banking Bill) directed SSA to modify or develop a database for accepting and comparing fraud protection data 2 provided electronically by a PE.3 In response to this statutory directive, SSA created eCBSV, a feebased SSN verification service. eCBSV allows PEs to submit, based on the number holder’s consent,4 the SSN, SUMMARY: 1 Public Law 115–174, codified at 42 U.S.C. 405b. Banking Bill defines ‘‘Fraud Protection Data’’ to mean a combination of an individual’s name (including the first name and any family forename or surname), SSN, and date of birth (including month, day, and year). Public Law 115– 174, title II, 215(b)(3), codified at 42 U.S.C. 405b(b)(3). 3 The Banking Bill defines a ‘‘permitted entity’’ to mean a financial institution or service provider, subsidiary, affiliate, agent, subcontractor, or assignee of a financial institution. Public Law 115– 174, title II, 215(b)(4), codified at 42 U.S.C. 405b(b)(4). They must possess an Employer Identification Number and a Dun and Bradstreet number. 4 Under the eCBSV User Agreement, valid Written Consent must meet the requirements of applicable Federal law, SSA’s regulations, and section IV of the eCBSV User Agreement. Valid Written consent must include a wet or electronic signature. Section IV A.1. eCBSV User Agreement. Electronic signatures must meet the definition in section 106 2 The E:\FR\FM\17APN1.SGM 17APN1

Agencies

[Federal Register Volume 89, Number 75 (Wednesday, April 17, 2024)]
[Notices]
[Pages 27471-27472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08092]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99946; File No. SR-ISE-2024-06]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Approving a 
Proposed Rule Change To Amend the Short Term Option Series Program

April 11, 2024.

I. Introduction

    On February 15, 2024, Nasdaq ISE, LLC (``ISE'' 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 Supplementary Material .03 of Options 4, Section 5, ``Series of 
Options Contracts Open for Trading'' to allow Tuesday and Thursday 
expirations for options listed pursuant to the Exchange's short term 
option series program (``Short Term Option Series Program'') on the 
iShares Russell 2000 ETF (``IWM''). The proposed rule change was 
published for comment in the Federal Register on March 1, 2024.\3\ The 
Commission did not receive any comments on the proposal. This order 
approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Release No. 99604 (February 26, 
2024), 89 FR 15235 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposal 4
---------------------------------------------------------------------------

    \4\ For a full description of the proposal, 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 beyond the current week and are not business 
days in which standard expiration options series, Monthly Options 
Series, or Quarterly Options Series expire (``Short Term Option Daily 
Expirations'').\5\ Table 1 in Supplementary Material .03 to Options 4, 
Section 5 specifies each symbol that qualifies as a Short Term Option 
Daily Expiration as well as the permitted expiration days.\6\ Today, 
the Exchange may list no more than a total of two Monday and Wednesday 
expirations on 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'').\7\
---------------------------------------------------------------------------

    \5\ See Supplementary .03 to Options 4, Section 5.
    \6\ See Table 1, Supplementary .03 to Options 4, Section 5.
    \7\ See id.
---------------------------------------------------------------------------

    The Exchange proposes to expand the Short Term Option Series 
Program to permit the Exchange to open for trading on any Monday or 
Tuesday that is a business day series of options on IWM that expire at 
the close of business on each of the next two Tuesdays beyond the 
current week that are business days and are not business days in which 
standard expiration options series, Monthly Options Series, or 
Quarterly Options Series expire (``Tuesday Expirations''). If the 
Tuesday Expiration falls on a Tuesday that is not a business day, the 
series shall expire on the first business day immediately prior to that 
Tuesday.\8\ Similarly, the proposal would permit the Exchange to open 
for trading on any Wednesday or Thursday that is a business day series 
of options on IWM that expire at the close of business on each of the 
next two Thursdays beyond the current week that are business days and 
are not business days in which standard expiration options series, 
Monthly Options Series, or Quarterly Options Series expire (``Thursday 
Expirations''). If the Thursday Expiration falls on a Thursday that is 
not a business day, the series shall expire on the first business day 
immediately prior to that Thursday. The listing and trading of Tuesday 
and Thursday Expirations would be subject to Supplementary Material .03 
of Options 4, Section 5.\9\
---------------------------------------------------------------------------

    \8\ The Exchange proposes to amend the Tuesday and Thursday 
expirations for IWM in Table 1 in Supplementary Material .03 to 
Options 4, Section 5 from ``0'' to ``2'' to permit Tuesday and 
Thursday expirations for options on IWM listed pursuant to the Short 
Term Option Series.
    \9\ See Notice, supra note 3 at 15236.
---------------------------------------------------------------------------

    The Exchange does not believe that any market disruptions would be 
encountered with the introduction of Tuesday and Thursday 
Expirations.\10\ The Exchange states there are no material differences 
in the treatment of Tuesday and Thursday SPY and QQQ Short Term Daily 
Expirations as compared to the proposed Tuesday and Thursday 
Expirations.\11\ The Exchange believes that it has the necessary 
capacity and surveillance programs in place to support and properly 
monitor trading in the proposed Tuesday and Thursday Expirations.\12\ 
The Exchange currently trades Short Term Option Series that expire 
Monday and Wednesday for SPY, QQQ, and IWM and stated that it has not 
experienced any market disruptions nor issues with capacity.\13\
---------------------------------------------------------------------------

    \10\ See Notice, supra note 3 at 15237.
    \11\ See Notice, supra note 3 at 15239. In addition, the 
Exchange states Cboe Exchange, Inc. began listing Tuesday and 
Thursday expirations in the Russell 2000 Index Weeklys and Mini-
Russell 2000 Index Weeklys on January 8, 2024. See Notice, supra 
note 3 at 15236.
    \12\ See Notice, supra note 3 at 15237.
    \13\ See id.
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III. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and 
finds that it is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange and, in particular, the requirements of Section 6(b) of the 
Act.\14\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\15\ which 
requires, among other things, that the Exchange's rules 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. The 
Commission believes that the proposed rule change is reasonably 
designed as a limited expansion of the Short Term Options Series 
Program and may provide the investing public and other market 
participants more flexibility to closely tailor their investment and 
hedging decisions in IWM options, thus allowing them to better manage 
their risk exposure. In addition, the Exchange has similar rules 
permitting the listing and trading of Tuesday and Thursday expirations 
on SPY and QQQ.\16\
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78f. In approving this proposed rule change, the 
Commission has considered the proposed rule change's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ See Supplementary .03 to Options 4, Section 5. See also 
Securities Exchange Release No. 96281 (November 9, 2022), 87 FR 
68769 (November 16, 2022) (order approving Tuesday and Thursday 
expirations on SPY and QQQ).
---------------------------------------------------------------------------

    In approving the proposal, the Commission notes that the Exchange

[[Page 27472]]

has represented that it has an adequate surveillance program in place 
to detect manipulative trading in Tuesday IWM Expirations and Thursday 
IWM Expirations.\17\ The Exchange further states that it has the 
necessary systems capacity to support the new options series.\18\ The 
Exchange also states that it has not experienced any market disruptions 
nor issues with capacity with trading Short Term Option Series that 
expire on Tuesdays and Thursdays for SPY and QQQ.\19\
---------------------------------------------------------------------------

    \17\ See Notice, supra note 3 at 15239.
    \18\ See id.
    \19\ See Notice, supra note 3 at 15237.
---------------------------------------------------------------------------

    Accordingly, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act \20\ and the rules and 
regulations thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\21\ that the proposed rule change (SR-ISE-2024-06) be, and hereby 
is, approved.
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    \21\ 15 U.S.C. 78s(b)(2).
    \22\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-08092 Filed 4-16-24; 8:45 am]
BILLING CODE 8011-01-P
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