Self-Regulatory Organizations; BOX Exchange LLC; Cboe Exchange, Inc.; MIAX International Securities Exchange LLC; MIAX PEARL LLC; Nasdaq ISE, LLC; NYSE American LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Changes To Permit the Listing and Trading of Options on Trusts That Hold Bitcoin, 34290-34294 [2024-09216]
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34290
Federal Register / Vol. 89, No. 84 / Tuesday, April 30, 2024 / Notices
regarding the substance of the changes
proposed in the Proposed Rule Change.7
Section 19(b)(2)(i) of the Exchange
Act 8 provides that, within 45 days of
the publication of notice of the filing of
a proposed rule change, the Commission
shall either approve the proposed rule
change, disapprove the proposed rule
change, or institute proceedings to
determine whether the proposed rule
change should be disapproved unless
the Commission extends the period
within which it must act as provided in
Section 19(b)(2)(ii) of the Exchange
Act.9 Section 19(b)(2)(ii) of the
Exchange Act allows the Commission to
designate a longer period for review (up
to 90 days from the publication of notice
of the filing of a proposed rule change)
if the Commission finds such longer
period to be appropriate and publishes
its reasons for so finding, or as to which
the self-regulatory organization
consents.10
The 45th day after publication of the
Notice of Filing is May 12, 2024. In
order to provide the Commission with
sufficient time to consider the Proposed
Rule Change, the Commission finds that
it is appropriate to designate a longer
period within which to take action on
the Proposed Rule Change and therefore
is extending this 45-day time period.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the
Exchange Act,11 designates June 26,
2024, as the date by which the
Commission shall either approve,
disapprove, or institute proceedings to
determine whether to disapprove
proposed rule change SR–FICC–2024–
007.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–09218 Filed 4–29–24; 8:45 am]
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BILLING CODE 8011–01–P
7 Comments on the Proposed Rule Change are
available at https://www.sec.gov/comments/sr-ficc2024-007/srficc2024007.htm.
8 15 U.S.C. 78s(b)(2)(i).
9 15 U.S.C. 78 s(b)(2)(ii).
10 Id.
11 Id.
12 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
35175; 812–15524]
Venerable Insurance and Annuity
Company, et al.
April 24, 2024.
Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’).
ACTION: Notice.
AGENCY:
Notice of an application for an order
pursuant to Section 6(c) of the
Investment Company Act of 1940 (the
‘‘Act’’).
SUMMARY OF APPLICATION: Applicants
request an order pursuant to Section
6(c) of the Act exempting them from the
provisions of Sections 2(a)(32), 22(c),
and 27(i)(2)(A) of the Act and Rule 22c–
1 under the Act to the extent necessary
to permit Applicants, under specified
circumstances, to recapture certain
bonus credits applied to purchase
payments with respect to certain
deferred annuity contracts issued by
Venerable Insurance and Annuity
Company.
APPLICANTS: Venerable Insurance and
Annuity Company, Separate Account
EQ of Venerable Insurance and Annuity
Company, and Directed Services LLC.
FILING DATES: The application was filed
on November 20, 2023, and amended on
March 6, 2024.
HEARING OR NOTIFICATION OF HEARING:
An order granting the requested relief
will be issued unless the Commission
orders a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants with a copy of the
request by email, if an email address is
listed for the relevant Applicant below,
or personally or by mail, if a physical
address is listed for the relevant
Applicant below. Hearing requests
should be received by the Commission
by 5:30 p.m. on May 20, 2024, and
should be accompanied by proof of
service on the Applicants, in the form
of an affidavit, or, for lawyers, a
certificate of service. Pursuant to rule 0–
5 under the Act, hearing requests should
state the nature of the writer’s interest,
any facts bearing upon the desirability
of a hearing on the matter, the reason for
the request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
emailing the Commission’s Secretary.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants: J.
Neil McMurdie, neil.mcmurdie@
venerable.com.
PO 00000
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Jill
Ehrlich, Senior Counsel, or Lisa Reid
Ragen, Branch Chief, at (202) 551–6825
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: For
Applicants’ representations, legal
analysis, and conditions, please refer to
Applicants’ amended application, dated
March 6, 2024, which may be obtained
via the Commission’s website by
searching for the file number at the top
of this document, or for an Applicant
using the Company name search field
on the SEC’s EDGAR system.
The SEC’s EDGAR system may be
searched at https://www.sec.gov/edgar/
searchedgar/legacy/companysearch.
html. You may also call the SEC’s Public
Reference Room at (202) 551–8090.
FOR FURTHER INFORMATION CONTACT:
For the Commission, by the Division of
Investment Management, under delegated
authority.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–09184 Filed 4–29–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100024; File Nos. SR–BOX–
2024–07; SR–CBOE–2024–005; SR–ISE–
2024–03; SR–ISE–2024–14; SR–MIAX–2024–
03; SR–NYSEAMER–2024–10; SR–PEARL–
2024–03]
Self-Regulatory Organizations; BOX
Exchange LLC; Cboe Exchange, Inc.;
MIAX International Securities
Exchange LLC; MIAX PEARL LLC;
Nasdaq ISE, LLC; NYSE American
LLC; Order Instituting Proceedings To
Determine Whether To Approve or
Disapprove Proposed Rule Changes
To Permit the Listing and Trading of
Options on Trusts That Hold Bitcoin
April 24, 2024.
I. Introduction
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
thereunder,2 BOX Exchange LLC
(‘‘BOX’’); Cboe Exchange, Inc. (‘‘Cboe
Options’’); MIAX International
Securities Exchange LLC (‘‘MIAX’’);
MIAX PEARL LLC (‘‘MIAX Pearl’’);
Nasdaq ISE, LLC (‘‘ISE’’); and NYSE
American LLC (‘‘NYSE American’’)
(collectively, the ‘‘Exchanges’’ and each
an ‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) proposed rule changes
to list and trade options on exchange1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 89, No. 84 / Tuesday, April 30, 2024 / Notices
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traded product (‘‘ETP’’) shares that
represent interests in either a specified
bitcoin trust or in any trust that holds
bitcoin, as described below (each, a
‘‘Proposal,’’ and collectively, the
‘‘Proposals’’). Specifically, ISE proposed
to list and trade options on shares that
represent interests in the iShares Bitcoin
Trust.3 BOX, Cboe Options, MIAX,
MIAX Pearl and, in a second filing, ISE,
proposed to list and trade options on
shares that represent interests in a trust
that holds bitcoin.4 NYSE American
proposed to list and trade options on
shares that represent interests in the
Bitwise Bitcoin ETF, the Grayscale
Bitcoin Trust, and on any trust that
holds bitcoin.5
On January 25, 2024, the Cboe
Options Proposal,6 the ISE iShares
Proposal,7 the MIAX Proposal,8 and the
MIAX Pearl Proposal 9 were published
for comment in the Federal Register. On
March 6, 2024, pursuant to Section
19(b)(2) of the Act,10 the Commission
designated a longer period within which
to approve these proposals, disapprove
the proposals, or institute proceedings
to determine whether to disapprove the
proposals.11 The NYSE American
3 See File No. SR–ISE–2024–03 (‘‘ISE iShares
Proposal’’), filed Jan. 9, 2024. On January 10, 2024,
the Commission approved proposals by NYSE Arca,
Inc., The Nasdaq Stock Market LLC, and Cboe BZX
Exchange, Inc. to list and trade the shares of 11
bitcoin-based commodity-based trust shares and
trust units, including the iShares Bitcoin Trust, the
Grayscale Bitcoin Trust, and the Bitwise Bitcoin
ETF. See Securities Exchange Act Release No.
99306 (Jan. 10, 2024), 89 FR 3008 (Jan. 17, 2024)
(order approving File Nos. SR–NYSEARCA–2021–
90; SR–NYSEARCA–2023–44; SR–NYSEARCA–
2023–58; SR–NASDAQ–2023–016; SR–NASDAQ–
2023–019; SR–CboeBZX–2023–028; SR–CboeBZX–
2023–038; SR–CboeBZX–2023–040; SR–CboeBZX–
2023–042; SR–CboeBZX–2023–044; SR–CboeBZX–
2023–072).
4 See File Nos. SR–BOX–2024–07 (‘‘BOX
Proposal’’), filed Mar. 11, 2024; SR–CBOE–2024–
005 (‘‘Cboe Options Proposal’’), filed Jan 5, 2024;
SR–ISE–2024–14 (‘‘ISE Trust Proposal’’), filed Mar.
19, 2024; SR–MIAX–2024–03 (‘‘MIAX Proposal’’),
filed Jan. 12, 2024; SR–PEARL–2024–03 (‘‘MIAX
Pearl Proposal’’), filed Jan. 12, 2024.
5 See File No. SR–NYSEAMER–2024–10 (‘‘NYSE
American Proposal’’), filed Feb. 9, 2024.
6 See Securities Exchange Act Release Nos. 99395
(Jan. 19, 2024), 89 FR 5075 (‘‘Cboe Options
Notice’’).
7 See. Securities Exchange Act Release No. 99396
(Jan. 19, 2024), 89 FR 5047 (‘‘ISE iShares Notice’’).
8 See Securities Exchange Act Release No. 99397
(Jan. 19, 2024), 89 FR 5079 (‘‘MIAX Notice’’).
9 See Securities Exchange Act Release No. 99394
(Jan. 19, 2024), 89 FR 5058 (‘‘MIAX Pearl Notice’’).
10 15 U.S.C. 78s(b)(2).
11 See Securities Exchange Act Release Nos.
99680 (Mar. 6, 2024), 89 FR 17887 (Mar. 12, 2024)
(Cboe Options Proposal); 99682 (Mar. 6, 2024), 89
FR 17887 (Mar. 12, 2024) (MIAX Pearl Proposal);
99684 (Mar. 6, 2024), 89 FR 17887 (Mar. 12, 2024)
(MIAX Proposal); 99681 (Mar. 6, 2024), 89 FR 17886
(Mar. 12, 2024) (ISE iShares Proposal). The
Commission designated April 24, 2024, as the date
by which the Commission shall approve or
disapprove, or institute proceedings to determine
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Proposal was published for comment in
the Federal Register on February 29,
2024.12 On April 8, 2024, pursuant to
Section 19(b)(2) of the Act,13 the
Commission designated a longer period
within which to approve the proposal,
disapprove the proposal, or institute
proceedings to determine whether to
disapprove the NYSE American
Proposal.14 On March 25, 2024, the BOX
Proposal 15 and the ISE Trust Proposal 16
were published for comment in the
Federal Register.
The Commission received comments
addressing the ISE iShares Proposal,17
the NYSE American Proposal,18 and the
Cboe Proposal.19 This order institutes
proceedings pursuant to Section
19(b)(2)(B) of the Act 20 to determine
whether to approve or disapprove the
Proposals.
II. Description of the Proposals
As described in detail in the notices
of their respective Proposals,21 the
Exchanges proposed to amend their
rules to permit the listing and trading of
options on shares that represent
interests in any trust that holds spot
bitcoin,22 or options on shares that
represent interests in specified trusts
that hold spot bitcoin 23 (such trusts,
collectively, the ‘‘Bitcoin ETPs’’).
The Exchanges stated that Bitcoin
ETPs are trusts that hold spot bitcoin,
and that the investment objective of a
Bitcoin ETP is to reflect the performance
of bitcoin (less the expenses of the
trust’s operations), offering investors an
whether to approve or disapprove, the proposed
rule changes.
12 See Securities Exchange Act Release No. 99593
(Feb. 23, 2024), 89 FR 14911 (‘‘NYSE American
Notice’’).
13 15 U.S.C. 78s(b)(2).
14 See Securities Exchange Act Release No. 99921
(April 8, 2024), 89 FR 25908 (April 12, 2024). The
Commission designated May 29, 2024, as the date
by which the Commission shall approve or
disapprove, or institute proceedings to determine
whether to approve or disapprove, the proposed
rule change.
15 See Securities Exchange Act Release No. 99777
(Mar. 19, 2024), 89 FR 20712 (‘‘BOX Notice’’).
16 See Securities Exchange Act Release No. 99776
(Mar. 19, 2024), 89 FR 20717 (‘‘ISE Trust Proposal
Notice’’).
17 Comments may be accessed at https://
www.sec.gov/comments/sr-ise-2024-03/
srise202403.htm.
18 Comments may be accessed at https://
www.sec.gov/comments/sr-nyseamer-2024-10/
srnyseamer202410.htm.
19 Comments may be accessed at https://
www.sec.gov/comments/sr-cboe-2024-005/
srcboe2024005.htm.
20 15 U.S.C. 78s(b)(2)(B).
21 See notes 6–9, 12, 15–16, supra.
22 See BOX Proposal; Cboe Options Proposal; ISE
Trust Proposal; MIAX Proposal; MIAX Pearl
Proposal; and NYSE American Proposal.
23 See ISE iShares Proposal and NYSE American
Proposal.
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34291
opportunity to gain exposure to bitcoin
without the complexities of direct
investment in bitcoin.24 The Exchanges
stated that the Bitcoin ETPs also would
provide investors with a hedging and
risk management tool to manage their
exposure to the price of bitcoin and
bitcoin-related products and
positions.25 Additionally, several
Exchanges stated that the Proposals
would provide investors with the ability
to transact Bitcoin ETP options on a
listed market rather than in the
unregulated over-the-counter options
market, which would increase market
transparency and enhance the process of
price discovery conducted on the
Exchanges through increased order
flow.26 Several Exchanges stated that
the primary substantive difference
between the proposed Bitcoin ETPs and
exchange-traded funds (‘‘ETFs’’)
currently deemed appropriate for
options trading on the Exchanges are
that the ETFs may hold securities,
certain financial instruments, and
specified precious metals, while Bitcoin
ETPs hold bitcoin.27 The Exchanges
24 See BOX Notice, 89 FR at 20713; Cboe Options
Notice, 89 FR at 5076; ISE Trust Proposal Notice 89
FR at 20717; MIAX Notice, 89 FR at 5080; MIAX
Pearl Notice, 89 FR at 5058; NYSE American
Notice, 89 FR at 14912.
25 See BOX Notice, 89 FR at 20715; Cboe Options
Notice, 89 FR at 5078; ISE iShares Notice, 89 FR
at 5051; ISE Trust Proposal Notice, 89 FR at 20719;
MIAX Notice, 89 FR at 5082; MIAX Pearl Notice,
89 FR at 5060–1; NYSE American Notice, 89 FR at
14912.
26 See BOX Notice, 89 FR at 20714; Cboe Options
Notice, 89 FR at 5077; ISE Trust Proposal Notice,
89 FR at 20719; MIAX Notice, 89 FR at 5081; MIAX
PEARL Notice, 89 FR at 5061.
27 See BOX Notice, 89 FR at 20713; Cboe Options
Notice, 89 FR at 5076; ISE Trust Proposal Notice,
89 FR at 20717; MIAX Notice, 89 FR at 5080; NYSE
American Notice, 89 FR at 14912. The Exchanges’
rules use the term ‘‘exchange traded fund’’ to refer
to several types of investment products. For
example, BOX Rule 5020(h) provides: ‘‘Securities
deemed appropriate for options trading shall
include shares or other securities (‘‘ExchangeTraded Fund Shares’’) that are traded on a national
securities exchange and are defined as an ‘‘NMS
stock’’ under Rule 600 of Regulation NMS and that
(i) represent interests in registered investment
companies (or series thereof) organized as open-end
management investment companies, unit
investment trusts or similar entities that hold
portfolios of securities and/or financial instruments,
including, but not limited to, stock index futures
contracts, options on futures, options on securities
and indices, equity caps, collars and floors, swap
agreements, forward contracts, repurchase
agreements and reverse repurchase agreements (the
‘‘Financial Instruments’’) and money market
instruments, including, but not limited to, U.S.
government securities and repurchase agreements
(the ‘‘Money Market Instruments’’) comprising or
otherwise based on or representing investments in
broad-based indexes or portfolios of securities and/
or Financial Instruments and Money Market
Instruments (or that hold securities in one or more
other registered investment companies that
themselves hold such portfolios of securities and/
or Financial Instruments and Money Market
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Federal Register / Vol. 89, No. 84 / Tuesday, April 30, 2024 / Notices
stated that they have not identified any
issues with the continued listing and
trading of any ETF or ETP options
currently trading on the Exchanges,
including options on ETPs that hold
commodities.28
Bitcoin ETP options will be
physically settled with American-style
exercise.29 The Exchanges stated that
Bitcoin ETP options will be subject to
the Exchanges’ respective initial and
continued listing standards.30 The
Exchanges’ initial listing standards
require, among other things, that the
security underlying a listed option be
‘‘characterized by a substantial number
of outstanding shares that are widely
held and actively traded.’’ 31 The
Exchanges stated that Bitcoin ETP
options will trade in the same manner
as other ETF options, and that Bitcoin
ETP options would be subject to the
Exchanges’ rules that currently apply to
the listing and trading of all ETF options
on the Exchanges, including, for
example, exchange rules governing
listing criteria, expiration and exercise
prices, minimum increments, position
and exercise limits, margin
requirements, customer accounts and
trading halt procedures.32
The Exchanges stated that position
and exercise limits for Bitcoin ETP
options would be determined pursuant
to the Exchanges’ existing rules.33
Under these rules, the position limit
applicable to an options class depends
upon the trading volume and
outstanding shares of the underlying
security. The Exchanges stated that the
highest option position and exercise
limit—250,000 option contracts on the
same side of the market—would apply
to options on a Bitcoin ETP with the
highest trading volume and number of
shares outstanding.34 Position and
exercise limits of 200,000, 75,000,
50,000 or 25,000 contracts on the same
side of the market would apply to
Bitcoin ETP options with lower sixmonth trading volumes and numbers of
shares outstanding.35
Instruments); or (ii) represent interests in a trust
that holds a specified non-U.S. currency deposited
with the trust or similar entity when aggregated in
some specified minimum number may be
surrendered to the trust by the beneficial owner to
receive the specified non-U.S. currency or
currencies and pays the beneficial owner interest
and other distributions on the deposited non-U.S.
currency or currencies, if any, declared and paid by
the trust (‘‘Currency Trust Shares’’); or (iii)
represent commodity pool interests principally
engaged, directly or indirectly, in holding and/or
managing portfolios or baskets of securities,
commodity futures contracts, options on
commodity futures contracts, swaps, forward
contracts and/or options on physical commodities
and/or non-U.S. currency (‘‘Commodity Pool
ETFs’’) or (iv) represent interests in the SPDR® Gold
Trust, the iShares COMEX Gold Trust, the iShares
Silver Trust, the ETFS Gold Trust, the ETFS Silver
trust, the ETFS Palladium Trust, the ETFS Platinum
Trust or the Sprott Physical Gold Trust; provided
that all of the following conditions are met. . . .’’
See also Cboe Rules 1.1 and 4.3, Interpretation and
Policy .06; ISE Options 4, Section 3(h); MIAX Rule
402(i); MIAX Pearl Rule 402(i); NYSE American
Rule 915, Commentary .06. In describing the
Proposals, for purposes of this Order, the terms
‘‘exchange-traded fund’’ and ‘‘ETF’’ have the
meaning set forth in the Exchanges’ rules.
28 See BOX Notice, 89 FR at 20714; Cboe Options
Notice, 89 FR at 5077; ISE Trust Proposal Notice,
89 FR at 20717; MIAX Notice, 89 FR at 5080; MIAX
Pearl Notice, 89 FR at 5060; NYSE American
Notice, 89 FR at 14912.
29 See BOX Notice, 89 FR at 20713; Cboe Options
Notice, 89 FR at 5076; ISE iShares Notice, 89 FR
at 5050; ISE Trust Notice, 89 FR at 20718; MIAX
Notice, 89 FR at 5080; MIAX Pearl Notice, 89 FR
at 5059; NYSE American Notice, 89 FR at 14913.
30 See BOX Notice, 89 FR at 20713; Cboe Options
Notice, 89 FR at 5076; ISE iShares Notice, 89 FR
at 5049; ISE Trust Proposal Notice, 89 FR at
201717–8; MIAX Notice, 89 FR at 5080; MIAX Pearl
Notice, 89 FR at 5059; NYSE American Notice, 89
FR at 14913.
31 See BOX Notice, 89 FR at 20713; Cboe Options
Notice, 89 FR at 5076; ISE iShares Notice, 89 FR
at 5049; ISE Trust Proposal Notice, 89 FR at
201717–8; MIAX Notice, 89 FR at 5080; MIAX Pearl
Notice, 89 FR at 5059; NYSE American Notice, 89
FR at 14913.
32 See BOX Notice, 89 FR at 20714; Cboe Options
Notice, 89 FR at 5077; ISE iShares Notice, 89 FR
at 5050; ISE Trust Notice, 89 FR at 20718–9; MIAX
Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR
at 5059–60; NYSE American Notice, 89 FR at
14913–4.
33 See BOX Notice, 89 FR at 20714; Cboe Options
Notice, 89 FR at 5077; ISE iShares Notice, 89 FR
at 5050; ISE Trust Notice, 89 FR at 20718–9; MIAX
Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR
at 5059–60; NYSE American Notice, 89 FR at
14913–4.
34 See BOX Notice, 89 FR at 20714; Cboe Options
Notice, 89 FR at 5077; ISE iShares Notice, 89 FR
at 5050; ISE Trust Notice, 89 FR at 20718–9; MIAX
Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR
at 5059–60; NYSE American Notice, 89 FR at
14913–4. For an option to be eligible for the
250,000-contract limit, the security underlying the
option must have most recent six-month trading
volume of at least 100 million shares, or most recent
six-month trading volume of at least 75 million
shares and at least 300 million shares currently
outstanding. See BOX Rule 3120(d); Cboe Rule 8.30,
Interpretation and Policy .02; ISE Options 9,
Section 13; MIAX Rule 307; MIAX Pearl Chapter III
(incorporating MIAX Rule 307 by reference); NYSE
American Rule 904, Commentary .07.
35 For an option to be eligible for the 50,000contract limit, the security underlying the option
must have most recent six-month trading volume of
at least 20,000,000 shares, or most recent six-month
trading volume of at least 15,000,000 shares and at
least 40,000,000 shares currently outstanding. For
an option to be eligible for the 75,000-contract limit,
the underlying security must have most recent sixmonth trading volume of at least 40,000,000 shares,
or most recent six-month trading volume of at least
30,000,000 shares and at least 120,000,000 shares
currently outstanding. For an option to be eligible
for the 200,000-contract limit, the underlying
security must have most recent six-month trading
volume of at least 80,000,000 shares, or most recent
six-month trading volume of at least 60,000,000
shares and at least 240,000,000 shares currently
outstanding. The 25,000-contract limit applies to
options on underlying securities that do not qualify
for a higher contract limit. See BOX Rule 3120(d);
Cboe Rule 8.30, Interpretation and Policy .02; ISE
Options 9, Section 13; MIAX Rule 307; MIAX Pearl
Chapter III (incorporating MIAX Rule 307 by
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The Exchanges represented that the
surveillance procedures that they apply
to other ETF options would apply to
options on Bitcoin ETPs, and that their
existing surveillance and reporting
safeguards are designed to deter and
detect possible manipulative behavior
that might arise from listing and trading
options on ETFs.36 In addition, several
Exchanges stated that they may obtain
information from contract markets that
are members of the Intermarket
Surveillance Group (‘‘ISG’’) related to
any financial instrument that is based,
in whole or in part, upon an interest in
or the performance of bitcoin.37 Each
Exchange represented that it believed
that both the Exchange and the Options
Price Reporting Authority, LLC
(‘‘OPRA’’) have the necessary systems
capacity to handle the additional traffic
associated with the listing of new series
that may result from the introduction of
options on Bitcoin ETPs.38
One Exchange acknowledged that
options on the Bitcoin ETPs will not be
available for trading until The Options
Clearing Corporation (‘‘OCC’’)
represents to the Exchange that it is able
to clear and settle the options.39
III. Summary of Comments Received
The Commission received comments
addressing the ISE iShares Proposal,40
the NYSE American Proposal,41 and
both the Cboe and NYSE American
Proposals.42 Commenters stated the
reference); NYSE American Rule 904, Commentary
.07.
36 See BOX Notice, 89 FR at 20714; Cboe Notice,
89 FR at 5077; ISE iShares Notice, 89 FR at 5050;
ISE Trust Notice, 89 FR at 20719; MIAX Notice, 89
FR at 5081; MIAX Pearl Notice, 89 FR at 5060;
NYSE American Notice, 89 FR at 14914.
37 See BOX Notice, 89 FR at 20714; Cboe Notice,
89 FR at 5077; ISE Trust Notice, 89 FR at 20719;
MIAX Notice, 89 FR at 5081; MIAX Pearl Notice,
89 FR at 5060. NYSE American stated that it may
obtain information from exchanges that are
members of ISG or from other exchanges with
which the NYSE American has entered into a
comprehensive surveillance sharing agreement
(‘‘CSSA’’). NYSE American further stated that it
would implement any new surveillance procedures
it deems necessary to effectively monitor the
trading of options on Bitcoin ETPs. See NYSE
American Notice, 89 FR at 14914.
38 See BOX Notice, 89 FR at 20714; Cboe Notice,
89 FR at 5077; ISE iShares Notice, 89 FR at 5050;
ISE Trust Notice, 89 FR at 20719; MIAX Notice, 89
FR at 5081; MIAX Pearl Notice, 89 FR at 5060;
NYSE American Notice, 89 FR at 14914.
39 See NYSE American Notice, 89 FR at 14914.
40 See comments from Joseph Ferrucci (‘‘Ferrucci
Letter’’); Benjamin Pincock (‘‘Pincock Letter’’);
Derek Jerina, dated Feb. 10, 20240 (‘‘Jerina Letter’’);
Xplorer Trading (‘‘Xplorer Lettter’’); and a comment
submitted anonymously (‘‘Anonymous Letter’’).
41 See letter to Vanessa Countryman, Secretary,
Commission, from Michael Sonnenshein, on behalf
of Grayscale Investments, LLC and GBTC investors,
dated February 28, 2024 (‘‘Grayscale Letter’’).
42 See letter to the Commission from James J.
Angel, Associate Professor of Finance, Georgetown
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options on spot Bitcoin ETPs would
help investors hedge their positions in
spot bitcoin and manage risk.43 One
commenter stated that permitting
options on the iShares Bitcoin Trust
would likely increase overall market
liquidity, allow for arbitrage and
increased market efficiency, and
provide investors with additional
investing tools to take exposure to spot
bitcoin.44 Other commenters stated the
Commission should permit the listing of
options on shares of spot bitcoin-based
ETPs because options on shares of an
ETF holding bitcoin futures already
trade.45 One commenter also stated that
options on ETPs holding spot bitcoin
and options on ETFs holding bitcoin
futures are both subject to the risks
presented by the spot bitcoin market,46
and commenters further stated that
options on extremely similar national
market system (‘‘NMS’’) securities 47
should have the same regulatory
treatment.48 One commenter further
stated that because ‘‘the price
trajectories of the spot- and futuresbased bitcoin ETFs are virtually
identical,’’ options on these securities
should have the same regulatory
treatment.49 The commenter also stated
that the Commission should allow
options exchanges to list options on any
NMS security that meets the exchange’s
quantitative listing standards without
filing a proposed rule change with the
Commission.50
One commenter stated that options
are an efficient risk management tool
that give investors the ability to take on
or reduce risk.51 Another commenter
stated that options on spot bitcoin ETPs
would facilitate price discovery in the
University, to the Commission, dated March 10,
2024 (‘‘Angel Letter’’).
43 See Ferrucci Letter (stating that options on the
iShares Bitcoin Trust would be used to hedge long
positions); Jerina Letter (stating that options would
give investors a means to hedge their investment in
the iShares Bitcoin Trust and other bitcoin-related
positions); Anonymous Letter (stating that options
on spot bitcoin ETPs would allow hedging and
greater flexibility for retail investors to trade a
volatile asset class at a more granular risk/reward
trade-off profile); Pincock Letter (stating that
options allow hedging strategies and mitigate risk
during periods of market downtime); Xplorer Letter
(stating that options make a product safer by
providing the ability to hedge); Angel Letter at 8
(stating that options are efficient risk management
tools and may be used as part of hedging strategies
to reduce risk).
44 See Jerina Letter.
45 See Angel Letter and Grayscale Letter.
46 See Grayscale Letter at 4. The commenter also
stated that the spot bitcoin ETP market is ‘‘far more
liquid’’ than the market for bitcoin futures ETFs. Id.
at 4–5.
47 17 CFR 242.600(b)(54).
48 See Grayscale Letter at 4; Angel Letter at 4.
49 See Angel Letter at 4.
50 See Angel Letter at 6.
51 See Angel Letter at 8.
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shares of the underlying ETP, improve
market efficiency, and help investors
achieve desired investment outcomes,
such as generating income, hedging, or
reducing volatility.52 In addition, the
commenter stated that approving the
listing and trading of options on spot
Bitcoin ETPs ‘‘would further bring
Bitcoin into the regulatory perimeter by
allowing additional regulated market
participants such as CFTC-regulated
designated contract merchants and SECregulated broker-dealers to trade the
products.’’ 53
IV. Proceedings To Determine Whether
To Approve or Disapprove File Nos.
SR–BOX–2024–07; SR–CBOE–2024–005;
SR–ISE–2024–03; SR–ISE–2024–14; SR–
MIAX–2024–03; SR–NYSEAMER–2024–
10; and SR–PEARL–2024–03 and
Grounds for Disapproval Under
Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Act 54 to determine
whether the Proposals 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.
Pursuant to Section 19(b)(2)(B) of the
Act,55 the Commission is providing
notice of the grounds for disapproval
under consideration. The Commission is
instituting proceedings to allow for
additional analysis of the Proposals’
consistency with Section 6(b)(5) of the
Act,56 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.
Under the Commission’s Rules of
Practice, the ‘‘burden to demonstrate
that a proposed rule change is
consistent with the [Act] and the rules
and regulations issued thereunder . . .
52 See
Grayscale Letter at 3.
Letter at 3.
54 15 U.S.C. 78s(b)(2)(B).
55 15 U.S.C. 78s(b)(2)(B).
56 15 U.S.C. 78f(b)(5).
53 Grayscale
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Sfmt 4703
34293
is on the self-regulatory organization
that proposed the rule change.’’ 57 The
description of a proposed rule change,
its purpose and operation, its effect, and
a legal analysis of its consistency with
applicable requirements must all be
sufficiently detailed and specific to
support an affirmative Commission
finding,58 and any failure of a selfregulatory organization to provide this
information may result in the
Commission not having a sufficient
basis to make an affirmative finding that
a proposed rule change is consistent
with the Act and the applicable rules
and regulations.59
As discussed above, the Exchanges’
initial listing standards require, among
other things, that the security
underlying a listed option be
‘‘characterized by a substantial number
of outstanding shares that are widely
held and actively traded.’’ 60 Instituting
proceedings allows for comment on
whether the Proposals have
demonstrated that spot Bitcoin ETP
shares meet this standard. In addition,
the Proposals stated that spot Bitcoin
ETP options would be subject to the
Exchanges’ rules that currently apply to
the listing of ETF options, including,
among others, the Exchanges’ option
position and exercise limit rules.61
Under the Exchanges’ rules, options that
have traded for less than six months
would be subject to a position limit of
25,000 contracts on the same side of the
market.62 The Exchanges’ rules provide
higher position limits based on the sixmonth average daily volume and/or
number of shares outstanding of the
underlying security.63 Instituting
proceedings allows for comment on
whether the Proposals have
demonstrated that these position limits
are appropriate for the proposed spot
Bitcoin ETP options. In addition,
instituting proceedings allows for
comment on whether the Proposals have
demonstrated that listing options on the
Bitcoin ETPs would not result in
adverse market impacts.
V. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
57 Rule 700(b)(3), Commission Rules of Practice,
17 CFR 201.700(b)(3).
58 See id.
59 See id.
60 See supra note 31.
61 See supra note 32.
62 See BOX Rule 3120(d); Cboe Rule 8.30,
Interpretation and Policy .02; ISE Options 9,
Section 13; MIAX Rule 307; MIAX Pearl Chapter III
(incorporating MIAX Rule 307 by reference); NYSE
American Rule 904, Commentary .07.
63 See supra note 35.
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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
Proposals. In particular, the
Commission invites the written views of
interested persons concerning whether
the proposed rule changes are consistent
with Section 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 which would
be facilitated by an oral presentation of
data, views, and arguments, the
Commission will consider, pursuant to
Rule 19b–4 under the Act,64 any request
for an opportunity to make an oral
presentation.65
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposed rule changes should be
approved or disapproved by May 21,
2024. Any person who wishes to file a
rebuttal to any other person’s
submission must file that rebuttal by
June 4, 2024. The Commission asks that
commenters address the sufficiency of
the Exchanges’ statements in support of
their respective Proposals, which are set
forth in the Notices,66 in addition to any
other comments they may wish to
submit about the proposed rule changes.
In particular, the Commission seeks
comment on the following questions
and asks commenters to submit data
where appropriate to support their
views:
1. Whether the Proposals should
include data demonstrating that the
shares of each of the specified Bitcoin
ETPs on which an Exchange proposes to
list options are ‘‘widely held and
actively traded,’’ as required by the
Exchanges’ rules;
2. Whether options on the specified
Bitcoin ETPs should be subject to the
same position limits as options on stock,
and whether the available supply in the
markets for bitcoin should be
considered in establishing position
limits for options on Bitcoin ETPs;
3. Whether the Proposals should
analyze the potential impact that listing
options on Bitcoin ETPs could have on
bitcoin market quality and function,
64 17
CFR 240.19b–4.
19(b)(2) of the Act, as amended by the
Securities Acts Amendments of 1975, Public Law
94–29 (June 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).
66 See supra notes 8–16.
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65 Section
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particularly during times of market
stress, given the linkages between the
options markets for Bitcoin ETPs, spot
Bitcoin ETPs, and spot bitcoin;
4. Whether the Proposals should
include representations regarding how
the Exchanges would obtain information
regarding trading in the Bitcoin ETPs
from the exchanges where the Bitcoin
ETPs trade; and
5. Whether the Proposals seeking to
list options on any ETP that holds spot
bitcoin provide an adequate basis for the
Commission to find that it is consistent
with Section 6(b)(5) of the Act to permit
the listing of such options, rather than
approving options on ETPs that hold
bitcoin on a product-by-product basis.67
Comments may be submitted by any
of the following methods:
2024–03. These file numbers 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 submissions, all
subsequent amendments, all written
statements with respect to the proposed
rule changes that are filed with the
Commission, and all written
communications relating to the
proposed rule changes 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
Electronic Comments
printing in the Commission’s Public
• Use the Commission’s internet
Reference Room, 100 F Street NE,
comment form (https://www.sec.gov/
Washington, DC 20549, on official
rules/sro.shtml); or
business days between the hours of 10
• Send an email to rule-comments@
a.m. and 3 p.m. Copies of the filing also
sec.gov. Please include File Nos. SR–
will be available for inspection and
BOX–2024–07; SR–CBOE–2024–005;
SR–ISE–2024–03; SR–ISE–2024–14; SR– copying at the principal offices of the
MIAX–2024–03; SR–NYSEAMER–2024– Exchanges. Do not include personal
identifiable information in submissions;
10; SR–PEARL–2024–03 on the subject
you should submit only information
line.
that you wish to make available
Paper Comments
publicly. We may redact in part or
• Send paper comments in triplicate
withhold entirely from publication
to Secretary, Securities and Exchange
submitted material that is obscene or
Commission, 100 F Street NE,
subject to copyright protection. All
Washington, DC 20549–1090.
submissions should refer to file
All submissions should refer to file
numbers SR–BOX–2024–07; SR–CBOE–
numbers SR–BOX–2024–07; SR–CBOE– 2024–005; SR–ISE–2024–03; SR–ISE–
2024–005; SR–ISE–2024–03; SR–ISE–
2024–14; SR–MIAX–2024–03; SR–
2024–14; SR–MIAX–2024–03; SR–
NYSEAMER–2024–10; SR–PEARL–
NYSEAMER–2024–10; SR–PEARL–
2024–03 and should be submitted by
May 21, 2024. Rebuttal comments
67 To date, options exchanges have proposed, and
should be submitted by June 4, 2024.
the Commission has approved, the listing and
trading of options on commodity-based ETPs on a
product-by-product basis. See, e.g., Securities
Exchange Act Release Nos. 94928 (May 17, 2022),
87 FR 31287 (May 23, 2022) (File No. SR–CBOE–
2022–09) (order approving a proposed rule change
to list and trade options on shares of the Goldman
Sachs Physical Gold ETF); 61983 (Apr. 26, 2010),
75 FR 23314 (May 3, 2010) (File No. SR–ISE–2010–
19) (order approving a proposed rule change to list
and trade options on shares of the ETFS Palladium
Trust and the ETFS Platinum Trust); 61483 (Feb. 3,
2010), 75 FR 6753 (Feb. 10, 2010) (File Nos. SR–
SR–CBOE–2010–007; SR–ISE–2009–106; SR–
NYSEAmex–2009–86; and SR–NYSEArca–2009–
110) (order approving proposals to list and trade
options on shares of the ETFS Gold Trust and the
ETFS Silver Trust); 59055 (December 4, 2008), 73
FR 75148 (December 10, 2008) (File Nos. SR–
Amex–2008–68; SR–BSE–2008–51; SR–CBOE–
2008–72; SR–ISE–2008–58; SR–NYSEArca–2008–
66; and SR–Phlx–2008–58) (order approving the
listing and trading of options on shares of the
iShares COMEX Gold Trust and the iShares Silver
Trust); 57894 (May 30, 2008), 73 FR 32061 (June 5,
2008) (File Nos. SR–Amex–2008–15; SR–CBOE–
2005–11; SR–ISE–2008–12; SR–NYSEArca–2008–
52; and SR–Phlx–2008–17) (order approving the
listing and trading of options on shares of the SPDR
Gold Trust).
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.68
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–09216 Filed 4–29–24; 8:45 am]
BILLING CODE 8011–01–P
68 17
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30APN1
]]>Agencies
[Federal Register Volume 89, Number 84 (Tuesday, April 30, 2024)]
[Notices]
[Pages 34290-34294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09216]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100024; File Nos. SR-BOX-2024-07; SR-CBOE-2024-005; SR-
ISE-2024-03; SR-ISE-2024-14; SR-MIAX-2024-03; SR-NYSEAMER-2024-10; SR-
PEARL-2024-03]
Self-Regulatory Organizations; BOX Exchange LLC; Cboe Exchange,
Inc.; MIAX International Securities Exchange LLC; MIAX PEARL LLC;
Nasdaq ISE, LLC; NYSE American LLC; Order Instituting Proceedings To
Determine Whether To Approve or Disapprove Proposed Rule Changes To
Permit the Listing and Trading of Options on Trusts That Hold Bitcoin
April 24, 2024.
I. Introduction
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ BOX
Exchange LLC (``BOX''); Cboe Exchange, Inc. (``Cboe Options''); MIAX
International Securities Exchange LLC (``MIAX''); MIAX PEARL LLC
(``MIAX Pearl''); Nasdaq ISE, LLC (``ISE''); and NYSE American LLC
(``NYSE American'') (collectively, the ``Exchanges'' and each an
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') proposed rule changes to list and trade options on
exchange-
[[Page 34291]]
traded product (``ETP'') shares that represent interests in either a
specified bitcoin trust or in any trust that holds bitcoin, as
described below (each, a ``Proposal,'' and collectively, the
``Proposals''). Specifically, ISE proposed to list and trade options on
shares that represent interests in the iShares Bitcoin Trust.\3\ BOX,
Cboe Options, MIAX, MIAX Pearl and, in a second filing, ISE, proposed
to list and trade options on shares that represent interests in a trust
that holds bitcoin.\4\ NYSE American proposed to list and trade options
on shares that represent interests in the Bitwise Bitcoin ETF, the
Grayscale Bitcoin Trust, and on any trust that holds bitcoin.\5\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See File No. SR-ISE-2024-03 (``ISE iShares Proposal''),
filed Jan. 9, 2024. On January 10, 2024, the Commission approved
proposals by NYSE Arca, Inc., The Nasdaq Stock Market LLC, and Cboe
BZX Exchange, Inc. to list and trade the shares of 11 bitcoin-based
commodity-based trust shares and trust units, including the iShares
Bitcoin Trust, the Grayscale Bitcoin Trust, and the Bitwise Bitcoin
ETF. See Securities Exchange Act Release No. 99306 (Jan. 10, 2024),
89 FR 3008 (Jan. 17, 2024) (order approving File Nos. SR-NYSEARCA-
2021-90; SR-NYSEARCA-2023-44; SR-NYSEARCA-2023-58; SR-NASDAQ-2023-
016; SR-NASDAQ-2023-019; SR-CboeBZX-2023-028; SR-CboeBZX-2023-038;
SR-CboeBZX-2023-040; SR-CboeBZX-2023-042; SR-CboeBZX-2023-044; SR-
CboeBZX-2023-072).
\4\ See File Nos. SR-BOX-2024-07 (``BOX Proposal''), filed Mar.
11, 2024; SR-CBOE-2024-005 (``Cboe Options Proposal''), filed Jan 5,
2024; SR-ISE-2024-14 (``ISE Trust Proposal''), filed Mar. 19, 2024;
SR-MIAX-2024-03 (``MIAX Proposal''), filed Jan. 12, 2024; SR-PEARL-
2024-03 (``MIAX Pearl Proposal''), filed Jan. 12, 2024.
\5\ See File No. SR-NYSEAMER-2024-10 (``NYSE American
Proposal''), filed Feb. 9, 2024.
---------------------------------------------------------------------------
On January 25, 2024, the Cboe Options Proposal,\6\ the ISE iShares
Proposal,\7\ the MIAX Proposal,\8\ and the MIAX Pearl Proposal \9\ were
published for comment in the Federal Register. On March 6, 2024,
pursuant to Section 19(b)(2) of the Act,\10\ the Commission designated
a longer period within which to approve these proposals, disapprove the
proposals, or institute proceedings to determine whether to disapprove
the proposals.\11\ The NYSE American Proposal was published for comment
in the Federal Register on February 29, 2024.\12\ On April 8, 2024,
pursuant to Section 19(b)(2) of the Act,\13\ the Commission designated
a longer period within which to approve the proposal, disapprove the
proposal, or institute proceedings to determine whether to disapprove
the NYSE American Proposal.\14\ On March 25, 2024, the BOX Proposal
\15\ and the ISE Trust Proposal \16\ were published for comment in the
Federal Register.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release Nos. 99395 (Jan. 19,
2024), 89 FR 5075 (``Cboe Options Notice'').
\7\ See. Securities Exchange Act Release No. 99396 (Jan. 19,
2024), 89 FR 5047 (``ISE iShares Notice'').
\8\ See Securities Exchange Act Release No. 99397 (Jan. 19,
2024), 89 FR 5079 (``MIAX Notice'').
\9\ See Securities Exchange Act Release No. 99394 (Jan. 19,
2024), 89 FR 5058 (``MIAX Pearl Notice'').
\10\ 15 U.S.C. 78s(b)(2).
\11\ See Securities Exchange Act Release Nos. 99680 (Mar. 6,
2024), 89 FR 17887 (Mar. 12, 2024) (Cboe Options Proposal); 99682
(Mar. 6, 2024), 89 FR 17887 (Mar. 12, 2024) (MIAX Pearl Proposal);
99684 (Mar. 6, 2024), 89 FR 17887 (Mar. 12, 2024) (MIAX Proposal);
99681 (Mar. 6, 2024), 89 FR 17886 (Mar. 12, 2024) (ISE iShares
Proposal). The Commission designated April 24, 2024, as the date by
which the Commission shall approve or disapprove, or institute
proceedings to determine whether to approve or disapprove, the
proposed rule changes.
\12\ See Securities Exchange Act Release No. 99593 (Feb. 23,
2024), 89 FR 14911 (``NYSE American Notice'').
\13\ 15 U.S.C. 78s(b)(2).
\14\ See Securities Exchange Act Release No. 99921 (April 8,
2024), 89 FR 25908 (April 12, 2024). The Commission designated May
29, 2024, as the date by which the Commission shall approve or
disapprove, or institute proceedings to determine whether to approve
or disapprove, the proposed rule change.
\15\ See Securities Exchange Act Release No. 99777 (Mar. 19,
2024), 89 FR 20712 (``BOX Notice'').
\16\ See Securities Exchange Act Release No. 99776 (Mar. 19,
2024), 89 FR 20717 (``ISE Trust Proposal Notice'').
---------------------------------------------------------------------------
The Commission received comments addressing the ISE iShares
Proposal,\17\ the NYSE American Proposal,\18\ and the Cboe
Proposal.\19\ This order institutes proceedings pursuant to Section
19(b)(2)(B) of the Act \20\ to determine whether to approve or
disapprove the Proposals.
---------------------------------------------------------------------------
\17\ Comments may be accessed at https://www.sec.gov/comments/sr-ise-2024-03/srise202403.htm.
\18\ Comments may be accessed at https://www.sec.gov/comments/sr-nyseamer-2024-10/srnyseamer202410.htm.
\19\ Comments may be accessed at https://www.sec.gov/comments/sr-cboe-2024-005/srcboe2024005.htm.
\20\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
II. Description of the Proposals
As described in detail in the notices of their respective
Proposals,\21\ the Exchanges proposed to amend their rules to permit
the listing and trading of options on shares that represent interests
in any trust that holds spot bitcoin,\22\ or options on shares that
represent interests in specified trusts that hold spot bitcoin \23\
(such trusts, collectively, the ``Bitcoin ETPs'').
---------------------------------------------------------------------------
\21\ See notes 6-9, 12, 15-16, supra.
\22\ See BOX Proposal; Cboe Options Proposal; ISE Trust
Proposal; MIAX Proposal; MIAX Pearl Proposal; and NYSE American
Proposal.
\23\ See ISE iShares Proposal and NYSE American Proposal.
---------------------------------------------------------------------------
The Exchanges stated that Bitcoin ETPs are trusts that hold spot
bitcoin, and that the investment objective of a Bitcoin ETP is to
reflect the performance of bitcoin (less the expenses of the trust's
operations), offering investors an opportunity to gain exposure to
bitcoin without the complexities of direct investment in bitcoin.\24\
The Exchanges stated that the Bitcoin ETPs also would provide investors
with a hedging and risk management tool to manage their exposure to the
price of bitcoin and bitcoin-related products and positions.\25\
Additionally, several Exchanges stated that the Proposals would provide
investors with the ability to transact Bitcoin ETP options on a listed
market rather than in the unregulated over-the-counter options market,
which would increase market transparency and enhance the process of
price discovery conducted on the Exchanges through increased order
flow.\26\ Several Exchanges stated that the primary substantive
difference between the proposed Bitcoin ETPs and exchange-traded funds
(``ETFs'') currently deemed appropriate for options trading on the
Exchanges are that the ETFs may hold securities, certain financial
instruments, and specified precious metals, while Bitcoin ETPs hold
bitcoin.\27\ The Exchanges
[[Page 34292]]
stated that they have not identified any issues with the continued
listing and trading of any ETF or ETP options currently trading on the
Exchanges, including options on ETPs that hold commodities.\28\
---------------------------------------------------------------------------
\24\ See BOX Notice, 89 FR at 20713; Cboe Options Notice, 89 FR
at 5076; ISE Trust Proposal Notice 89 FR at 20717; MIAX Notice, 89
FR at 5080; MIAX Pearl Notice, 89 FR at 5058; NYSE American Notice,
89 FR at 14912.
\25\ See BOX Notice, 89 FR at 20715; Cboe Options Notice, 89 FR
at 5078; ISE iShares Notice, 89 FR at 5051; ISE Trust Proposal
Notice, 89 FR at 20719; MIAX Notice, 89 FR at 5082; MIAX Pearl
Notice, 89 FR at 5060-1; NYSE American Notice, 89 FR at 14912.
\26\ See BOX Notice, 89 FR at 20714; Cboe Options Notice, 89 FR
at 5077; ISE Trust Proposal Notice, 89 FR at 20719; MIAX Notice, 89
FR at 5081; MIAX PEARL Notice, 89 FR at 5061.
\27\ See BOX Notice, 89 FR at 20713; Cboe Options Notice, 89 FR
at 5076; ISE Trust Proposal Notice, 89 FR at 20717; MIAX Notice, 89
FR at 5080; NYSE American Notice, 89 FR at 14912. The Exchanges'
rules use the term ``exchange traded fund'' to refer to several
types of investment products. For example, BOX Rule 5020(h)
provides: ``Securities deemed appropriate for options trading shall
include shares or other securities (``Exchange-Traded Fund Shares'')
that are traded on a national securities exchange and are defined as
an ``NMS stock'' under Rule 600 of Regulation NMS and that (i)
represent interests in registered investment companies (or series
thereof) organized as open-end management investment companies, unit
investment trusts or similar entities that hold portfolios of
securities and/or financial instruments, including, but not limited
to, stock index futures contracts, options on futures, options on
securities and indices, equity caps, collars and floors, swap
agreements, forward contracts, repurchase agreements and reverse
repurchase agreements (the ``Financial Instruments'') and money
market instruments, including, but not limited to, U.S. government
securities and repurchase agreements (the ``Money Market
Instruments'') comprising or otherwise based on or representing
investments in broad-based indexes or portfolios of securities and/
or Financial Instruments and Money Market Instruments (or that hold
securities in one or more other registered investment companies that
themselves hold such portfolios of securities and/or Financial
Instruments and Money Market Instruments); or (ii) represent
interests in a trust that holds a specified non-U.S. currency
deposited with the trust or similar entity when aggregated in some
specified minimum number may be surrendered to the trust by the
beneficial owner to receive the specified non-U.S. currency or
currencies and pays the beneficial owner interest and other
distributions on the deposited non-U.S. currency or currencies, if
any, declared and paid by the trust (``Currency Trust Shares''); or
(iii) represent commodity pool interests principally engaged,
directly or indirectly, in holding and/or managing portfolios or
baskets of securities, commodity futures contracts, options on
commodity futures contracts, swaps, forward contracts and/or options
on physical commodities and/or non-U.S. currency (``Commodity Pool
ETFs'') or (iv) represent interests in the SPDR[supreg] Gold Trust,
the iShares COMEX Gold Trust, the iShares Silver Trust, the ETFS
Gold Trust, the ETFS Silver trust, the ETFS Palladium Trust, the
ETFS Platinum Trust or the Sprott Physical Gold Trust; provided that
all of the following conditions are met. . . .'' See also Cboe Rules
1.1 and 4.3, Interpretation and Policy .06; ISE Options 4, Section
3(h); MIAX Rule 402(i); MIAX Pearl Rule 402(i); NYSE American Rule
915, Commentary .06. In describing the Proposals, for purposes of
this Order, the terms ``exchange-traded fund'' and ``ETF'' have the
meaning set forth in the Exchanges' rules.
\28\ See BOX Notice, 89 FR at 20714; Cboe Options Notice, 89 FR
at 5077; ISE Trust Proposal Notice, 89 FR at 20717; MIAX Notice, 89
FR at 5080; MIAX Pearl Notice, 89 FR at 5060; NYSE American Notice,
89 FR at 14912.
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Bitcoin ETP options will be physically settled with American-style
exercise.\29\ The Exchanges stated that Bitcoin ETP options will be
subject to the Exchanges' respective initial and continued listing
standards.\30\ The Exchanges' initial listing standards require, among
other things, that the security underlying a listed option be
``characterized by a substantial number of outstanding shares that are
widely held and actively traded.'' \31\ The Exchanges stated that
Bitcoin ETP options will trade in the same manner as other ETF options,
and that Bitcoin ETP options would be subject to the Exchanges' rules
that currently apply to the listing and trading of all ETF options on
the Exchanges, including, for example, exchange rules governing listing
criteria, expiration and exercise prices, minimum increments, position
and exercise limits, margin requirements, customer accounts and trading
halt procedures.\32\
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\29\ See BOX Notice, 89 FR at 20713; Cboe Options Notice, 89 FR
at 5076; ISE iShares Notice, 89 FR at 5050; ISE Trust Notice, 89 FR
at 20718; MIAX Notice, 89 FR at 5080; MIAX Pearl Notice, 89 FR at
5059; NYSE American Notice, 89 FR at 14913.
\30\ See BOX Notice, 89 FR at 20713; Cboe Options Notice, 89 FR
at 5076; ISE iShares Notice, 89 FR at 5049; ISE Trust Proposal
Notice, 89 FR at 201717-8; MIAX Notice, 89 FR at 5080; MIAX Pearl
Notice, 89 FR at 5059; NYSE American Notice, 89 FR at 14913.
\31\ See BOX Notice, 89 FR at 20713; Cboe Options Notice, 89 FR
at 5076; ISE iShares Notice, 89 FR at 5049; ISE Trust Proposal
Notice, 89 FR at 201717-8; MIAX Notice, 89 FR at 5080; MIAX Pearl
Notice, 89 FR at 5059; NYSE American Notice, 89 FR at 14913.
\32\ See BOX Notice, 89 FR at 20714; Cboe Options Notice, 89 FR
at 5077; ISE iShares Notice, 89 FR at 5050; ISE Trust Notice, 89 FR
at 20718-9; MIAX Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR at
5059-60; NYSE American Notice, 89 FR at 14913-4.
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The Exchanges stated that position and exercise limits for Bitcoin
ETP options would be determined pursuant to the Exchanges' existing
rules.\33\ Under these rules, the position limit applicable to an
options class depends upon the trading volume and outstanding shares of
the underlying security. The Exchanges stated that the highest option
position and exercise limit--250,000 option contracts on the same side
of the market--would apply to options on a Bitcoin ETP with the highest
trading volume and number of shares outstanding.\34\ Position and
exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts on the
same side of the market would apply to Bitcoin ETP options with lower
six-month trading volumes and numbers of shares outstanding.\35\
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\33\ See BOX Notice, 89 FR at 20714; Cboe Options Notice, 89 FR
at 5077; ISE iShares Notice, 89 FR at 5050; ISE Trust Notice, 89 FR
at 20718-9; MIAX Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR at
5059-60; NYSE American Notice, 89 FR at 14913-4.
\34\ See BOX Notice, 89 FR at 20714; Cboe Options Notice, 89 FR
at 5077; ISE iShares Notice, 89 FR at 5050; ISE Trust Notice, 89 FR
at 20718-9; MIAX Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR at
5059-60; NYSE American Notice, 89 FR at 14913-4. For an option to be
eligible for the 250,000-contract limit, the security underlying the
option must have most recent six-month trading volume of at least
100 million shares, or most recent six-month trading volume of at
least 75 million shares and at least 300 million shares currently
outstanding. See BOX Rule 3120(d); Cboe Rule 8.30, Interpretation
and Policy .02; ISE Options 9, Section 13; MIAX Rule 307; MIAX Pearl
Chapter III (incorporating MIAX Rule 307 by reference); NYSE
American Rule 904, Commentary .07.
\35\ For an option to be eligible for the 50,000-contract limit,
the security underlying the option must have most recent six-month
trading volume of at least 20,000,000 shares, or most recent six-
month trading volume of at least 15,000,000 shares and at least
40,000,000 shares currently outstanding. For an option to be
eligible for the 75,000-contract limit, the underlying security must
have most recent six-month trading volume of at least 40,000,000
shares, or most recent six-month trading volume of at least
30,000,000 shares and at least 120,000,000 shares currently
outstanding. For an option to be eligible for the 200,000-contract
limit, the underlying security must have most recent six-month
trading volume of at least 80,000,000 shares, or most recent six-
month trading volume of at least 60,000,000 shares and at least
240,000,000 shares currently outstanding. The 25,000-contract limit
applies to options on underlying securities that do not qualify for
a higher contract limit. See BOX Rule 3120(d); Cboe Rule 8.30,
Interpretation and Policy .02; ISE Options 9, Section 13; MIAX Rule
307; MIAX Pearl Chapter III (incorporating MIAX Rule 307 by
reference); NYSE American Rule 904, Commentary .07.
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The Exchanges represented that the surveillance procedures that
they apply to other ETF options would apply to options on Bitcoin ETPs,
and that their existing surveillance and reporting safeguards are
designed to deter and detect possible manipulative behavior that might
arise from listing and trading options on ETFs.\36\ In addition,
several Exchanges stated that they may obtain information from contract
markets that are members of the Intermarket Surveillance Group
(``ISG'') related to any financial instrument that is based, in whole
or in part, upon an interest in or the performance of bitcoin.\37\ Each
Exchange represented that it believed that both the Exchange and the
Options Price Reporting Authority, LLC (``OPRA'') have the necessary
systems capacity to handle the additional traffic associated with the
listing of new series that may result from the introduction of options
on Bitcoin ETPs.\38\
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\36\ See BOX Notice, 89 FR at 20714; Cboe Notice, 89 FR at 5077;
ISE iShares Notice, 89 FR at 5050; ISE Trust Notice, 89 FR at 20719;
MIAX Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR at 5060; NYSE
American Notice, 89 FR at 14914.
\37\ See BOX Notice, 89 FR at 20714; Cboe Notice, 89 FR at 5077;
ISE Trust Notice, 89 FR at 20719; MIAX Notice, 89 FR at 5081; MIAX
Pearl Notice, 89 FR at 5060. NYSE American stated that it may obtain
information from exchanges that are members of ISG or from other
exchanges with which the NYSE American has entered into a
comprehensive surveillance sharing agreement (``CSSA''). NYSE
American further stated that it would implement any new surveillance
procedures it deems necessary to effectively monitor the trading of
options on Bitcoin ETPs. See NYSE American Notice, 89 FR at 14914.
\38\ See BOX Notice, 89 FR at 20714; Cboe Notice, 89 FR at 5077;
ISE iShares Notice, 89 FR at 5050; ISE Trust Notice, 89 FR at 20719;
MIAX Notice, 89 FR at 5081; MIAX Pearl Notice, 89 FR at 5060; NYSE
American Notice, 89 FR at 14914.
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One Exchange acknowledged that options on the Bitcoin ETPs will not
be available for trading until The Options Clearing Corporation
(``OCC'') represents to the Exchange that it is able to clear and
settle the options.\39\
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\39\ See NYSE American Notice, 89 FR at 14914.
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III. Summary of Comments Received
The Commission received comments addressing the ISE iShares
Proposal,\40\ the NYSE American Proposal,\41\ and both the Cboe and
NYSE American Proposals.\42\ Commenters stated the
[[Page 34293]]
options on spot Bitcoin ETPs would help investors hedge their positions
in spot bitcoin and manage risk.\43\ One commenter stated that
permitting options on the iShares Bitcoin Trust would likely increase
overall market liquidity, allow for arbitrage and increased market
efficiency, and provide investors with additional investing tools to
take exposure to spot bitcoin.\44\ Other commenters stated the
Commission should permit the listing of options on shares of spot
bitcoin-based ETPs because options on shares of an ETF holding bitcoin
futures already trade.\45\ One commenter also stated that options on
ETPs holding spot bitcoin and options on ETFs holding bitcoin futures
are both subject to the risks presented by the spot bitcoin market,\46\
and commenters further stated that options on extremely similar
national market system (``NMS'') securities \47\ should have the same
regulatory treatment.\48\ One commenter further stated that because
``the price trajectories of the spot- and futures-based bitcoin ETFs
are virtually identical,'' options on these securities should have the
same regulatory treatment.\49\ The commenter also stated that the
Commission should allow options exchanges to list options on any NMS
security that meets the exchange's quantitative listing standards
without filing a proposed rule change with the Commission.\50\
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\40\ See comments from Joseph Ferrucci (``Ferrucci Letter'');
Benjamin Pincock (``Pincock Letter''); Derek Jerina, dated Feb. 10,
20240 (``Jerina Letter''); Xplorer Trading (``Xplorer Lettter'');
and a comment submitted anonymously (``Anonymous Letter'').
\41\ See letter to Vanessa Countryman, Secretary, Commission,
from Michael Sonnenshein, on behalf of Grayscale Investments, LLC
and GBTC investors, dated February 28, 2024 (``Grayscale Letter'').
\42\ See letter to the Commission from James J. Angel, Associate
Professor of Finance, Georgetown University, to the Commission,
dated March 10, 2024 (``Angel Letter'').
\43\ See Ferrucci Letter (stating that options on the iShares
Bitcoin Trust would be used to hedge long positions); Jerina Letter
(stating that options would give investors a means to hedge their
investment in the iShares Bitcoin Trust and other bitcoin-related
positions); Anonymous Letter (stating that options on spot bitcoin
ETPs would allow hedging and greater flexibility for retail
investors to trade a volatile asset class at a more granular risk/
reward trade-off profile); Pincock Letter (stating that options
allow hedging strategies and mitigate risk during periods of market
downtime); Xplorer Letter (stating that options make a product safer
by providing the ability to hedge); Angel Letter at 8 (stating that
options are efficient risk management tools and may be used as part
of hedging strategies to reduce risk).
\44\ See Jerina Letter.
\45\ See Angel Letter and Grayscale Letter.
\46\ See Grayscale Letter at 4. The commenter also stated that
the spot bitcoin ETP market is ``far more liquid'' than the market
for bitcoin futures ETFs. Id. at 4-5.
\47\ 17 CFR 242.600(b)(54).
\48\ See Grayscale Letter at 4; Angel Letter at 4.
\49\ See Angel Letter at 4.
\50\ See Angel Letter at 6.
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One commenter stated that options are an efficient risk management
tool that give investors the ability to take on or reduce risk.\51\
Another commenter stated that options on spot bitcoin ETPs would
facilitate price discovery in the shares of the underlying ETP, improve
market efficiency, and help investors achieve desired investment
outcomes, such as generating income, hedging, or reducing
volatility.\52\ In addition, the commenter stated that approving the
listing and trading of options on spot Bitcoin ETPs ``would further
bring Bitcoin into the regulatory perimeter by allowing additional
regulated market participants such as CFTC-regulated designated
contract merchants and SEC-regulated broker-dealers to trade the
products.'' \53\
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\51\ See Angel Letter at 8.
\52\ See Grayscale Letter at 3.
\53\ Grayscale Letter at 3.
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IV. Proceedings To Determine Whether To Approve or Disapprove File Nos.
SR-BOX-2024-07; SR-CBOE-2024-005; SR-ISE-2024-03; SR-ISE-2024-14; SR-
MIAX-2024-03; SR-NYSEAMER-2024-10; and SR-PEARL-2024-03 and Grounds for
Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \54\ to determine whether the Proposals 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.
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\54\ 15 U.S.C. 78s(b)(2)(B).
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Pursuant to Section 19(b)(2)(B) of the Act,\55\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the Proposals' consistency with Section 6(b)(5) of the
Act,\56\ 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.
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\55\ 15 U.S.C. 78s(b)(2)(B).
\56\ 15 U.S.C. 78f(b)(5).
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Under the Commission's Rules of Practice, the ``burden to
demonstrate that a proposed rule change is consistent with the [Act]
and the rules and regulations issued thereunder . . . is on the self-
regulatory organization that proposed the rule change.'' \57\ The
description of a proposed rule change, its purpose and operation, its
effect, and a legal analysis of its consistency with applicable
requirements must all be sufficiently detailed and specific to support
an affirmative Commission finding,\58\ and any failure of a self-
regulatory organization to provide this information may result in the
Commission not having a sufficient basis to make an affirmative finding
that a proposed rule change is consistent with the Act and the
applicable rules and regulations.\59\
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\57\ Rule 700(b)(3), Commission Rules of Practice, 17 CFR
201.700(b)(3).
\58\ See id.
\59\ See id.
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As discussed above, the Exchanges' initial listing standards
require, among other things, that the security underlying a listed
option be ``characterized by a substantial number of outstanding shares
that are widely held and actively traded.'' \60\ Instituting
proceedings allows for comment on whether the Proposals have
demonstrated that spot Bitcoin ETP shares meet this standard. In
addition, the Proposals stated that spot Bitcoin ETP options would be
subject to the Exchanges' rules that currently apply to the listing of
ETF options, including, among others, the Exchanges' option position
and exercise limit rules.\61\ Under the Exchanges' rules, options that
have traded for less than six months would be subject to a position
limit of 25,000 contracts on the same side of the market.\62\ The
Exchanges' rules provide higher position limits based on the six-month
average daily volume and/or number of shares outstanding of the
underlying security.\63\ Instituting proceedings allows for comment on
whether the Proposals have demonstrated that these position limits are
appropriate for the proposed spot Bitcoin ETP options. In addition,
instituting proceedings allows for comment on whether the Proposals
have demonstrated that listing options on the Bitcoin ETPs would not
result in adverse market impacts.
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\60\ See supra note 31.
\61\ See supra note 32.
\62\ See BOX Rule 3120(d); Cboe Rule 8.30, Interpretation and
Policy .02; ISE Options 9, Section 13; MIAX Rule 307; MIAX Pearl
Chapter III (incorporating MIAX Rule 307 by reference); NYSE
American Rule 904, Commentary .07.
\63\ See supra note 35.
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V. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
[[Page 34294]]
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 Proposals. In particular, the Commission invites the written
views of interested persons concerning whether the proposed rule
changes are consistent with Section 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 which would
be facilitated by an oral presentation of data, views, and arguments,
the Commission will consider, pursuant to Rule 19b-4 under the Act,\64\
any request for an opportunity to make an oral presentation.\65\
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\64\ 17 CFR 240.19b-4.
\65\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 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 changes should be
approved or disapproved by May 21, 2024. Any person who wishes to file
a rebuttal to any other person's submission must file that rebuttal by
June 4, 2024. The Commission asks that commenters address the
sufficiency of the Exchanges' statements in support of their respective
Proposals, which are set forth in the Notices,\66\ in addition to any
other comments they may wish to submit about the proposed rule changes.
In particular, the Commission seeks comment on the following questions
and asks commenters to submit data where appropriate to support their
views:
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\66\ See supra notes 8-16.
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1. Whether the Proposals should include data demonstrating that the
shares of each of the specified Bitcoin ETPs on which an Exchange
proposes to list options are ``widely held and actively traded,'' as
required by the Exchanges' rules;
2. Whether options on the specified Bitcoin ETPs should be subject
to the same position limits as options on stock, and whether the
available supply in the markets for bitcoin should be considered in
establishing position limits for options on Bitcoin ETPs;
3. Whether the Proposals should analyze the potential impact that
listing options on Bitcoin ETPs could have on bitcoin market quality
and function, particularly during times of market stress, given the
linkages between the options markets for Bitcoin ETPs, spot Bitcoin
ETPs, and spot bitcoin;
4. Whether the Proposals should include representations regarding
how the Exchanges would obtain information regarding trading in the
Bitcoin ETPs from the exchanges where the Bitcoin ETPs trade; and
5. Whether the Proposals seeking to list options on any ETP that
holds spot bitcoin provide an adequate basis for the Commission to find
that it is consistent with Section 6(b)(5) of the Act to permit the
listing of such options, rather than approving options on ETPs that
hold bitcoin on a product-by-product basis.\67\
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\67\ To date, options exchanges have proposed, and the
Commission has approved, the listing and trading of options on
commodity-based ETPs on a product-by-product basis. See, e.g.,
Securities Exchange Act Release Nos. 94928 (May 17, 2022), 87 FR
31287 (May 23, 2022) (File No. SR-CBOE-2022-09) (order approving a
proposed rule change to list and trade options on shares of the
Goldman Sachs Physical Gold ETF); 61983 (Apr. 26, 2010), 75 FR 23314
(May 3, 2010) (File No. SR-ISE-2010-19) (order approving a proposed
rule change to list and trade options on shares of the ETFS
Palladium Trust and the ETFS Platinum Trust); 61483 (Feb. 3, 2010),
75 FR 6753 (Feb. 10, 2010) (File Nos. SR-SR-CBOE-2010-007; SR-ISE-
2009-106; SR-NYSEAmex-2009-86; and SR-NYSEArca-2009-110) (order
approving proposals to list and trade options on shares of the ETFS
Gold Trust and the ETFS Silver Trust); 59055 (December 4, 2008), 73
FR 75148 (December 10, 2008) (File Nos. SR-Amex-2008-68; SR-BSE-
2008-51; SR-CBOE-2008-72; SR-ISE-2008-58; SR-NYSEArca-2008-66; and
SR-Phlx-2008-58) (order approving the listing and trading of options
on shares of the iShares COMEX Gold Trust and the iShares Silver
Trust); 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (File Nos.
SR-Amex-2008-15; SR-CBOE-2005-11; SR-ISE-2008-12; SR-NYSEArca-2008-
52; and SR-Phlx-2008-17) (order approving the listing and trading of
options on shares of the SPDR Gold Trust).
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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 Nos. SR-BOX-2024-07; SR-CBOE-2024-005; SR-ISE-2024-03; SR-ISE-
2024-14; SR-MIAX-2024-03; SR-NYSEAMER-2024-10; SR-PEARL-2024-03 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 numbers SR-BOX-2024-07; SR-CBOE-
2024-005; SR-ISE-2024-03; SR-ISE-2024-14; SR-MIAX-2024-03; SR-NYSEAMER-
2024-10; SR-PEARL-2024-03. These file numbers 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 submissions, all
subsequent amendments, all written statements with respect to the
proposed rule changes that are filed with the Commission, and all
written communications relating to the proposed rule changes 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 offices of the Exchanges. 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 numbers SR-BOX-2024-07; SR-CBOE-2024-005; SR-ISE-2024-03;
SR-ISE-2024-14; SR-MIAX-2024-03; SR-NYSEAMER-2024-10; SR-PEARL-2024-03
and should be submitted by May 21, 2024. Rebuttal comments should be
submitted by June 4, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\68\
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\68\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-09216 Filed 4-29-24; 8:45 am]
BILLING CODE 8011-01-P
