Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Adopt Rules To Permit the Listing of Two Monday Expirations for Options on SPDR Gold Shares, iShares Silver Trust, and iShares 20+ Year Treasury Bond ETF, 71770-71773 [2024-19663]

Download as PDF 71770 Federal Register / Vol. 89, No. 170 / Tuesday, September 3, 2024 / Notices accordance with the CAT Funding Model as approved by the SEC. As discussed above, each of the inputs into the calculation of CAT Fee 2024–1 is reasonable and the resulting fee rate for CAT Fee 2024–1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, CAT Fee 2024–1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Not applicable. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act 192 and Rule 19b–4(f)(2) thereunder,193 because it establishes or changes a due, or fee. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend the rule change if it appears to the Commission that the action is necessary or appropriate in the public interest, for the protection of investors, or would otherwise further the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR–IEX–2024–14 and should be submitted on or before September 24, 2024. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.194 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–19655 Filed 8–30–24; 8:45 am] BILLING CODE 8011–01–P Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include file number SR– IEX–2024–14 on the subject line. tkelley on LAP7H3WLY3PROD with NOTICES2 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Sep<11>2014 22:46 Aug 30, 2024 194 17 Jkt 262001 Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Adopt Rules To Permit the Listing of Two Monday Expirations for Options on SPDR Gold Shares, iShares Silver Trust, and iShares 20+ Year Treasury Bond ETF August 27, 2024. I. Introduction On May 16, 2024, Nasdaq ISE, LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to permit the listing of two Monday expirations for options on United States Oil Fund, LP (‘‘USO’’), United States Natural Gas Fund, LP (‘‘UNG’’), SPDR Gold Shares (‘‘GLD’’), iShares Silver Trust (‘‘SLV’’), and iShares 20+ Year Treasury Bond ETF (‘‘TLT’’). The proposed rule change was published for comment in the Federal Register on May 30, 2024.3 On July 9, 2024, pursuant to Section 19(b)(2) of the Act,4 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.5 On August 21, 2024, the Exchange filed Amendment No. 1 to the proposed rule change, which superseded the original proposed rule change in its entirety.6 The Commission did not receive any comments. The Commission is publishing this notice to solicit comments on Amendment No. 1 from interested persons and is approving the U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 100223 (May 23, 2024), 89 FR 46926. 4 15 U.S.C. 78s(b)(2). 5 See Securities Exchange Act Release No. 100478, 89 FR 57482 (July 15, 2024) (designating August 28, 2024 as the date by which the Commission shall either approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change). 6 In Amendment No. 1, the Exchange narrowed the scope of the proposed rule change to remove all aspects of the proposal that would have permitted the Exchange to list two Monday expirations for options on USO and UNG. The full text of Amendment No. 1 is available on the Commission’s website at: https://www.sec.gov/comments/sr-ise2024-21/srise202421-509815-1478802.pdf. 2 17 • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to file number SR–IEX–2024–14. This file 193 17 [Release No. 34–100837; File No. SR–ISE– 2024–21] 1 15 Paper Comments 192 15 SECURITIES AND EXCHANGE COMMISSION PO 00000 CFR 200.30–3(a)(12). Frm 00521 Fmt 4703 Sfmt 4703 U:\REGISTER\03SEN1.SGM 03SEN1 Federal Register / Vol. 89, No. 170 / Tuesday, September 3, 2024 / Notices proposed rule change, as modified by Amendment No. 1, on an accelerated basis. tkelley on LAP7H3WLY3PROD with NOTICES2 II. Description of the Proposed Rule Change, as Modified by Amendment No. 1 7 Currently, the Exchange may open for trading series of options on certain symbols that expire at the close of business on each of the next two Mondays, Tuesdays, Wednesdays, and Thursdays, respectively, that are business days beyond the current week and are not business days in which standard expiration series, Monthly Options Series or Quarterly Options Series expire (‘‘Short Term Option Daily Expirations’’).8 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.9 Today, the Exchange may list no more than a total of two Monday, Tuesday, Wednesday, and Thursday expirations on the SPDR S&P 500 ETF Trust (‘‘SPY’’), the Invesco QQQ Trust (‘‘QQQ’’), and the iShares Russell 2000 ETF (‘‘IWM’’). In addition, the Exchange permits the listing of two Wednesday expirations for options on GLD, SLV, and TLT (collectively, ‘‘ETPs’’).10 The Exchange proposes to expand the Short Term Option Series Program to permit the listing of two Monday expirations beyond the current week for options on GLD, SLV, and TLT (‘‘Monday ETP Expirations’’). The proposed Monday ETP Expirations would be similar to the current Monday SPY, QQQ, and IWM Short Term Option Daily Expirations set forth in Supplementary Material .03 to Options 4, Section 5, such that the Exchange may open for trading on any Friday or Monday that is a business day (beyond the current week) series of options on GLD, SLV, and TLT to expire on any Monday of the month that is a business day and is not a Monday in which standard expiration options series, Monthly Options Series, or Quarterly Options Series expire. In the case of a series that is listed on a Friday and expires on a Monday, it must be listed at least one business week and one 7 For a full description of the proposed rule change, refer to Amendment No. 1, supra note 6. 8 See Supplementary Material .03 to Options 4, Section 5. 9 See id. 10 See Securities Exchange Act Release No. 98905 (November 13, 2023), 88 FR 80348 (November 17, 2023) (SR–ISE–2023–11) (‘‘Wednesday ETP Expiration Order’’). In addition, the Exchange may list two Wednesday expirations on USO and UNG. See Supplementary Material .03 to Options 4, Section 5. VerDate Sep<11>2014 22:46 Aug 30, 2024 Jkt 262001 business day prior to the expiration.11 In the event a Monday ETP Expiration would expire on a Monday and that Monday is the same day that a standard expiration options series, Monthly Options Series, or Quarterly Options Series expires, the Exchange would skip that week’s listing and instead list the following week; therefore, the two weeks would not be consecutive.12 As is the case with other equity options series listed pursuant to the Short Term Option Series Program, the proposed Monday ETP Expirations series would be p.m.-settled. Monday ETP Expirations would be treated similarly to existing Monday SPY, QQQ, and IWM Expirations. The interval between strike prices for the proposed Monday ETP Expirations would be the same as those currently applicable to the Short Term Option Series Program.13 The Exchange represents that it would implement this rule change within 30 days after Commission approval and would issue an Options Trader Alert to notify Members of the implementation date.14 III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange.15 In particular, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Act,16 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 11 See Amendment No. 1, supra note 6, at 6. id. Today, Monday expirations in SPY, QQQ, and IWM similarly skip the weekly listing in the event the weekly listing expires on the same day in the same class as a standard expiration options series, Monthly Options Series, or Quarterly Options Series. See id. 13 See id. at 7. Specifically, the Monday ETP Expirations would have a strike interval of (i) $0.50 or greater for strike prices below $100, and $1 or greater for strike prices between $100 and $150 for all option classes that participate in the Short Term Option Series Program, (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program, or (iii) $2.50 or greater for strike prices above $150. See id. 14 See id. at 19. 15 In approving this proposed rule change, as modified by Amendment No. 1, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 16 15 U.S.C. 78f(b)(5). 12 See PO 00000 Frm 00522 Fmt 4703 Sfmt 4703 71771 and a national market system, and, in general, to protect investors and the public interest. In support of its proposal, the Exchange states it does not believe that any market disruptions will be encountered with the introduction of Monday ETP Expirations.17 The Exchange states that it currently trades Short Term Option Daily Expirations on SPY, QQQ, and IWM, including Short Term Option Daily Expirations that expire on Mondays, and has not experienced any market disruptions nor issues with capacity.18 In addition, the Exchange states it has not experienced any market disruptions or issues with capacity in expanding the three ETPs to the Wednesday expirations.19 The Exchange states it has surveillance programs in place to support and properly monitor trading in Short Term Option Series that expire Monday for SPY, QQQ, and IWM, and the Exchange states that it has the necessary capacity and surveillance programs in place to support and properly monitor trading in the proposed Monday ETP Expirations.20 The Exchange states that its proposed expansion of the Short Term Option Series Program to permit GLD, SLV, and TLT Monday Expirations would add a small overall number of weekly expiration dates because the Exchange will limit the number of Short Term Option Daily Expirations for these ETPs to two Monday expirations.21 The Exchange examined the average daily contracts traded in GLD, SLV, and TLT five months before and five months after the introduction of Wednesday expirations to assess whether there was new interest from adding these alternative expirations. According to data provided by the Exchange, there was a general volume increase in terms of average daily contracts traded in these three symbols in the five-month period following the introduction of Wednesday expirations.22 Based on that data, the Exchange believes there is general demand for alternative 17 See Amendment No. 1 at 8. id. at 8–9. 19 See id. at 9. 20 See id. 21 See id. at 10. According to the Exchange, expanding the Short Term Option Series Program in this way would account for the addition of 4% (GLD), 8% (SLV), and 4% (TLT) of strikes for the respective symbol. See id. With respect to the impact on the Short Term Option Series Program for each symbol overall, the impact would be a 13% (GLD), 20% (SLV), and 18% (TLT) increase in strikes for the respective symbol. See id. at 10–11. With respect to the impact on the Short Term Option Series Program overall, the impact would be a 0.05% (GLD), 0.03% (SLV), and 0.04% (TLT) increase in strikes for the respective symbol. See id. at 11. 22 See id. at 13. 18 See U:\REGISTER\03SEN1.SGM 03SEN1 71772 Federal Register / Vol. 89, No. 170 / Tuesday, September 3, 2024 / Notices tkelley on LAP7H3WLY3PROD with NOTICES2 expirations in GLD, SLV, and TLT, and that new interest would be attracted by adding alternative expirations (rather than existing interest being cannibalized).23 The Exchange also examined the lifecycle volume of GLD, SLV, and TLT in terms of average daily contracts traded, going from 50 days before expiration to the expiration date, to see how that lifecycle volume changed before and after the introduction of Wednesday expirations. The data provided by the Exchange shows an increase in volume in terms of average daily contracts traded as the expiration date approaches.24 This is consistent across all three symbols as well as before and after the addition of Wednesday expirations.25 Additionally, the Exchange provided data that shows post-close movements between 4:00 and 5:30 p.m. Eastern Time that indicates that GLD, SLV, and TLT are generally less volatile (strikewise) than SPY, QQQ, and IWM.26 Further, the Exchange provided data that shows that GLD, SLV, and TLT are generally less volatile during the last 30 minutes of trading than SPY, QQQ, and IWM.27 The Exchange’s proposal is reasonably designed as a limited expansion of Monday expirations. As noted above, the Exchange currently offers Short Term Option Daily Expirations on SPY, QQQ, and IWM, including Monday expirations. The Exchange proposes to limit the number of Monday ETP Expirations to two expirations beyond the current week. The Exchange also proposes to limit the listing of additional Monday expirations to the three ETPs, which generally have similar or lower volatility in terms of post-closing and end of day volatility as SPY, QQQ, and IWM. And, like SPY, QQQ, and IWM, the ETPs have multiple highly-correlated instruments available for hedging.28 In addition, the Exchange’s data showing an increase in average daily contracts traded after the introduction of Wednesday expirations 23 See id. The Exchange performed a similar analysis of average daily contracts traded in SPY and QQQ five months before and five months after the introduction of Tuesday and Thursday expirations on those symbols. See id. at 12. The Exchange’s data similarly showed a volume increase in terms of average daily contracts traded in SPY and QQQ in the period following the introduction of Tuesday and Thursday expirations, which the Exchange states indicates the existence of genuine new interest in alternative expirations for those symbols. See id. at 12–13. 24 See id. at 14–16. 25 See id. 26 See id. at 16. 27 See id. at 17. 28 See Wednesday ETP Expiration Order, supra note 10, at 80349. VerDate Sep<11>2014 22:46 Aug 30, 2024 Jkt 262001 on the ETPs may indicate a demand for alternative expirations in the three ETPs. Further, the Monday ETP Expirations will be subject to the same rules for Monday expirations in SPY, QQQ, and IWM. Based on the foregoing, the Commission believes the proposal reasonably balances the Exchange’s desire to accommodate market participants by offering a wider array of investment opportunities with the need to avoid unnecessary proliferation of options series. Additionally, this limited expansion of Monday ETP Expirations may provide the investing public and other market participants more flexibility to closely tailor their investment and hedging decisions using options on these ETPs, thus allowing them to better manage their risk exposure. For these reasons, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Act 29 and the rules and regulations thereunder applicable to a national securities exchange. IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule Change Interested persons are invited to submit written data, views, and arguments concerning whether Amendment No. 1 is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include file number SR– ISE–2024–21 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to file number SR–ISE–2024–21. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR–ISE–2024–21 and should be submitted on or before September 24, 2024. V. Accelerated Approval of the Proposed Rule Change, as Modified by Amendment No. 1 The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the thirtieth day after the date of publication of notice of the filing of Amendment No. 1 in the Federal Register. As discussed above, in Amendment No. 1, the narrowed the scope of the proposed rule change to remove all aspects of the proposal that would have permitted the Exchange to list two Monday expirations for options on USO and UNG. The Commission believes that Amendment No. 1 merely narrows the scope of the proposed rule change, does not otherwise alter the substance of the proposed rule change, and does not raise any novel regulatory issues. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,30 to approve the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,31 that the proposed rule change (SR–ISE–2024– 21), as modified by Amendment No. 1, be and hereby is, approved on an accelerated basis. 30 15 29 15 PO 00000 U.S.C. 78f(b)(5). Frm 00523 Fmt 4703 31 15 Sfmt 4703 U.S.C. 78s(b)(2). U.S.C. 78f(b)(2). U:\REGISTER\03SEN1.SGM 03SEN1 Federal Register / Vol. 89, No. 170 / Tuesday, September 3, 2024 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.32 Sherry R. Haywood, Assistant Secretary. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.6 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–19663 Filed 8–30–24; 8:45 am] [FR Doc. 2024–19643 Filed 8–30–24; 8:45 am] BILLING CODE 8011–01–P BILLING CODE 8011–01–P Self-Regulatory Organizations; Depository Trust Company; Notice of Withdrawal of a Proposed Rule Change To Modify the DTC Operational Arrangements (Necessary for Securities To Become and Remain Eligible for DTC Services) On July 26, 2024, the Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b– 4(f)(6) thereunder,2 a proposed rule change to amend the DTC Operational Arrangements (Necessary for Securities to Become and Remain Eligible for DTC Services) (the ‘‘OA’’) to (i) insert, consolidate and update the procedures for an Agent processing a reorganizations event, offer, or solicitation (each, an ‘‘Offer’’) through the DTC Automated Tender Offer Program (‘‘ATOP’’) 3 system or Automated Subscription Offer Program (‘‘ASOP’’) 4 system in order to better align with current processing, and (ii) make related technical and clarifying changes relating to Offers processed through ATOP or ASOP (‘‘Proposal’’). The Proposal was published for comment in the Federal Register on August 7, 2024.5 On August 23, 2024, DTC withdrew the Proposal (SR–DTC–2024–07). CFR 200.30–3(a)(12). U.S.C. 78s(b)(3)(A). 2 17 CFR 240.19b–4(f)(6). 3 For the history of ATOP, see Securities Exchange Act Release Nos. 26538 (Feb. 13,1989), 54 FR 7316 (Feb. 17, 1989) (SR–DTC–88–19); 27139 (Aug. 14, 1989), 54 FR 34841 (Aug. 22, 1989) (SR– DTC–88–19); 29168 (May 7, 1991), 56 FR 22742 (May 16, 1991) (SR–DTC–91–04); 30678 (May 7, 1992), 57 FR 20541 (May 13, 1992) (SR–DTC–91– 11); and 32645 (July 16, 1993), 58 FR 39585 (SR– DTC–92–12). 4 For more information about ASOP, see Securities Exchange Act Release No. 35108 (Dec. 16, 1994), 59 FR 67356 (Dec. 29, 1994) (SR–DTC– 94–15). 5 See Securities Exchange Act Release No. 100637 (Aug. 1, 2024), 89 FR 64511 (Aug. 7, 2024). tkelley on LAP7H3WLY3PROD with NOTICES2 VerDate Sep<11>2014 22:46 Aug 30, 2024 [Disaster Declaration # 20486 and # 20487; KENTUCKY Disaster Number KY–20005] Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the Commonwealth of Kentucky U.S. Small Business Administration. ACTION: Amendment 2. AGENCY: This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the Commonwealth of KENTUCKY (FEMA–4804–DR), dated 07/23/2024. Incident: Severe Storms, Straight-line Winds, Tornadoes, Landslides, and Mudslides. Incident Period: 05/21/2024 through 05/27/2024. DATES: Issued on 08/21/2024. Physical Loan Application Deadline Date: 09/23/2024. Economic Injury (EIDL) Loan Application Deadline Date: 04/23/2025. ADDRESSES: Visit the MySBA Loan Portal at https://lending.sba.gov to apply for a disaster assistance loan. FOR FURTHER INFORMATION CONTACT: Vanessa Morgan, Office of Disaster Recovery & Resilience, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster declaration for Private Non-Profit organizations in the Commonwealth of KENTUCKY, dated 07/23/2024, is hereby amended to include the following area as adversely affected by the disaster. Primary County: Bell. All other information in the original declaration remains unchanged. SUMMARY: August 27, 2024. 1 15 Jkt 262001 [Public Notice 12513] 60-Day Notice of Proposed Information Collection: Statement of Registration Notice of request for public comment and submission to OMB of proposed collection of information. The Department of State is seeking Office of Management and Budget (OMB) approval for the information collection described below. In accordance with the Paperwork Reduction Act of 1995, we are requesting comments on this collection from all interested individuals and organizations. The purpose of this notice is to allow 60 days for public comment preceding submission of the collection to OMB. DATES: The Department will accept comments from the public up to November 4, 2024. ADDRESSES: • Web: Persons with access to the internet may comment on this notice by going to www.Regulations.gov. You can search for the document by entering ‘‘Docket Number: DOS–2024–0031’’ in the Search field. Then click the ‘‘Comment Now’’ button and complete the comment form. • Email: DDTCPublicComments@ state.gov. • Regular Mail: Send written comments to: Directorate of Defense Trade Controls, Attn: Andrea Battista, 2401 E St. NW, Suite H–1205, Washington, DC 20522–0112. You must include the DS form number (if applicable), information collection title, and the OMB control number in any correspondence. FOR FURTHER INFORMATION CONTACT: Direct requests for additional information regarding the collection listed in this notice, including requests for copies of the proposed collection instrument and supporting documents, to Andrea Battista, who may be reached at BattistaAL@state.gov or 202–663– 3136. SUMMARY: [Release No. 34–100838; File No. SR–DTC– 2024–007] 32 17 DEPARTMENT OF STATE ACTION: SMALL BUSINESS ADMINISTRATION SECURITIES AND EXCHANGE COMMISSION 71773 (Catalog of Federal Domestic Assistance Number 59008) Francisco Sánchez, Jr., Associate Administrator, Office of Disaster Recovery & Resilience. [FR Doc. 2024–19691 Filed 8–30–24; 8:45 am] BILLING CODE 8026–09–P 6 17 PO 00000 CFR 200.30–3(a)(12). Frm 00524 Fmt 4703 Sfmt 4703 SUPPLEMENTARY INFORMATION: • Title of Information Collection: Statement of Registration • OMB Control Number: 1405–0002 • Type of Request: Extension of a Currently Approved Collection • Originating Office: Directorate of Defense Trade Controls (DDTC) • Form Number: DS–2032 • Respondents: Respondents are any person/s who engages in the United States in the business of manufacturing or exporting or temporarily importing defense articles U:\REGISTER\03SEN1.SGM 03SEN1

Agencies

[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Pages 71770-71773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19663]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100837; File No. SR-ISE-2024-21]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
of Amendment No. 1 and Order Granting Accelerated Approval of a 
Proposed Rule Change, as Modified by Amendment No. 1, To Adopt Rules To 
Permit the Listing of Two Monday Expirations for Options on SPDR Gold 
Shares, iShares Silver Trust, and iShares 20+ Year Treasury Bond ETF

August 27, 2024.

I. Introduction

    On May 16, 2024, Nasdaq ISE, LLC (``Exchange'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to permit the 
listing of two Monday expirations for options on United States Oil 
Fund, LP (``USO''), United States Natural Gas Fund, LP (``UNG''), SPDR 
Gold Shares (``GLD''), iShares Silver Trust (``SLV''), and iShares 20+ 
Year Treasury Bond ETF (``TLT''). The proposed rule change was 
published for comment in the Federal Register on May 30, 2024.\3\ On 
July 9, 2024, pursuant to Section 19(b)(2) of the Act,\4\ the 
Commission designated a longer period within which to approve the 
proposed rule change, disapprove the proposed rule change, or institute 
proceedings to determine whether to disapprove the proposed rule 
change.\5\ On August 21, 2024, the Exchange filed Amendment No. 1 to 
the proposed rule change, which superseded the original proposed rule 
change in its entirety.\6\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 100223 (May 23, 
2024), 89 FR 46926.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 100478, 89 FR 57482 
(July 15, 2024) (designating August 28, 2024 as the date by which 
the Commission shall either approve, disapprove, or institute 
proceedings to determine whether to disapprove the proposed rule 
change).
    \6\ In Amendment No. 1, the Exchange narrowed the scope of the 
proposed rule change to remove all aspects of the proposal that 
would have permitted the Exchange to list two Monday expirations for 
options on USO and UNG. The full text of Amendment No. 1 is 
available on the Commission's website at: https://www.sec.gov/comments/sr-ise-2024-21/srise202421-509815-1478802.pdf.
---------------------------------------------------------------------------

    The Commission did not receive any comments. The Commission is 
publishing this notice to solicit comments on Amendment No. 1 from 
interested persons and is approving the

[[Page 71771]]

proposed rule change, as modified by Amendment No. 1, on an accelerated 
basis.

II. Description of the Proposed Rule Change, as Modified by Amendment 
No. 1 \7\
---------------------------------------------------------------------------

    \7\ For a full description of the proposed rule change, refer to 
Amendment No. 1, supra note 6.
---------------------------------------------------------------------------

    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 series, Monthly Options Series or 
Quarterly Options Series expire (``Short Term Option Daily 
Expirations'').\8\ 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.\9\ Today, 
the Exchange may list no more than a total of two Monday, Tuesday, 
Wednesday, and Thursday expirations on the SPDR S&P 500 ETF Trust 
(``SPY''), the Invesco QQQ Trust (``QQQ''), and the iShares Russell 
2000 ETF (``IWM''). In addition, the Exchange permits the listing of 
two Wednesday expirations for options on GLD, SLV, and TLT 
(collectively, ``ETPs'').\10\
---------------------------------------------------------------------------

    \8\ See Supplementary Material .03 to Options 4, Section 5.
    \9\ See id.
    \10\ See Securities Exchange Act Release No. 98905 (November 13, 
2023), 88 FR 80348 (November 17, 2023) (SR-ISE-2023-11) (``Wednesday 
ETP Expiration Order''). In addition, the Exchange may list two 
Wednesday expirations on USO and UNG. See Supplementary Material .03 
to Options 4, Section 5.
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    The Exchange proposes to expand the Short Term Option Series 
Program to permit the listing of two Monday expirations beyond the 
current week for options on GLD, SLV, and TLT (``Monday ETP 
Expirations''). The proposed Monday ETP Expirations would be similar to 
the current Monday SPY, QQQ, and IWM Short Term Option Daily 
Expirations set forth in Supplementary Material .03 to Options 4, 
Section 5, such that the Exchange may open for trading on any Friday or 
Monday that is a business day (beyond the current week) series of 
options on GLD, SLV, and TLT to expire on any Monday of the month that 
is a business day and is not a Monday in which standard expiration 
options series, Monthly Options Series, or Quarterly Options Series 
expire. In the case of a series that is listed on a Friday and expires 
on a Monday, it must be listed at least one business week and one 
business day prior to the expiration.\11\ In the event a Monday ETP 
Expiration would expire on a Monday and that Monday is the same day 
that a standard expiration options series, Monthly Options Series, or 
Quarterly Options Series expires, the Exchange would skip that week's 
listing and instead list the following week; therefore, the two weeks 
would not be consecutive.\12\ As is the case with other equity options 
series listed pursuant to the Short Term Option Series Program, the 
proposed Monday ETP Expirations series would be p.m.-settled.
---------------------------------------------------------------------------

    \11\ See Amendment No. 1, supra note 6, at 6.
    \12\ See id. Today, Monday expirations in SPY, QQQ, and IWM 
similarly skip the weekly listing in the event the weekly listing 
expires on the same day in the same class as a standard expiration 
options series, Monthly Options Series, or Quarterly Options Series. 
See id.
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    Monday ETP Expirations would be treated similarly to existing 
Monday SPY, QQQ, and IWM Expirations. The interval between strike 
prices for the proposed Monday ETP Expirations would be the same as 
those currently applicable to the Short Term Option Series Program.\13\
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    \13\ See id. at 7. Specifically, the Monday ETP Expirations 
would have a strike interval of (i) $0.50 or greater for strike 
prices below $100, and $1 or greater for strike prices between $100 
and $150 for all option classes that participate in the Short Term 
Option Series Program, (ii) $0.50 for option classes that trade in 
one dollar increments and are in the Short Term Option Series 
Program, or (iii) $2.50 or greater for strike prices above $150. See 
id.
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    The Exchange represents that it would implement this rule change 
within 30 days after Commission approval and would issue an Options 
Trader Alert to notify Members of the implementation date.\14\
---------------------------------------------------------------------------

    \14\ See id. at 19.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change, as modified by Amendment No. 1, is consistent with the Act and 
the rules and regulations thereunder applicable to a national 
securities exchange.\15\ In particular, the Commission finds that the 
proposed rule change, as modified by Amendment No. 1, is consistent 
with Section 6(b)(5) of the Act,\16\ 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.
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    \15\ In approving this proposed rule change, as modified by 
Amendment No. 1, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
    \16\ 15 U.S.C. 78f(b)(5).
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    In support of its proposal, the Exchange states it does not believe 
that any market disruptions will be encountered with the introduction 
of Monday ETP Expirations.\17\ The Exchange states that it currently 
trades Short Term Option Daily Expirations on SPY, QQQ, and IWM, 
including Short Term Option Daily Expirations that expire on Mondays, 
and has not experienced any market disruptions nor issues with 
capacity.\18\ In addition, the Exchange states it has not experienced 
any market disruptions or issues with capacity in expanding the three 
ETPs to the Wednesday expirations.\19\ The Exchange states it has 
surveillance programs in place to support and properly monitor trading 
in Short Term Option Series that expire Monday for SPY, QQQ, and IWM, 
and the Exchange states that it has the necessary capacity and 
surveillance programs in place to support and properly monitor trading 
in the proposed Monday ETP Expirations.\20\ The Exchange states that 
its proposed expansion of the Short Term Option Series Program to 
permit GLD, SLV, and TLT Monday Expirations would add a small overall 
number of weekly expiration dates because the Exchange will limit the 
number of Short Term Option Daily Expirations for these ETPs to two 
Monday expirations.\21\
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    \17\ See Amendment No. 1 at 8.
    \18\ See id. at 8-9.
    \19\ See id. at 9.
    \20\ See id.
    \21\ See id. at 10. According to the Exchange, expanding the 
Short Term Option Series Program in this way would account for the 
addition of 4% (GLD), 8% (SLV), and 4% (TLT) of strikes for the 
respective symbol. See id. With respect to the impact on the Short 
Term Option Series Program for each symbol overall, the impact would 
be a 13% (GLD), 20% (SLV), and 18% (TLT) increase in strikes for the 
respective symbol. See id. at 10-11. With respect to the impact on 
the Short Term Option Series Program overall, the impact would be a 
0.05% (GLD), 0.03% (SLV), and 0.04% (TLT) increase in strikes for 
the respective symbol. See id. at 11.
---------------------------------------------------------------------------

    The Exchange examined the average daily contracts traded in GLD, 
SLV, and TLT five months before and five months after the introduction 
of Wednesday expirations to assess whether there was new interest from 
adding these alternative expirations. According to data provided by the 
Exchange, there was a general volume increase in terms of average daily 
contracts traded in these three symbols in the five-month period 
following the introduction of Wednesday expirations.\22\ Based on that 
data, the Exchange believes there is general demand for alternative

[[Page 71772]]

expirations in GLD, SLV, and TLT, and that new interest would be 
attracted by adding alternative expirations (rather than existing 
interest being cannibalized).\23\
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    \22\ See id. at 13.
    \23\ See id. The Exchange performed a similar analysis of 
average daily contracts traded in SPY and QQQ five months before and 
five months after the introduction of Tuesday and Thursday 
expirations on those symbols. See id. at 12. The Exchange's data 
similarly showed a volume increase in terms of average daily 
contracts traded in SPY and QQQ in the period following the 
introduction of Tuesday and Thursday expirations, which the Exchange 
states indicates the existence of genuine new interest in 
alternative expirations for those symbols. See id. at 12-13.
---------------------------------------------------------------------------

    The Exchange also examined the lifecycle volume of GLD, SLV, and 
TLT in terms of average daily contracts traded, going from 50 days 
before expiration to the expiration date, to see how that lifecycle 
volume changed before and after the introduction of Wednesday 
expirations. The data provided by the Exchange shows an increase in 
volume in terms of average daily contracts traded as the expiration 
date approaches.\24\ This is consistent across all three symbols as 
well as before and after the addition of Wednesday expirations.\25\
---------------------------------------------------------------------------

    \24\ See id. at 14-16.
    \25\ See id.
---------------------------------------------------------------------------

    Additionally, the Exchange provided data that shows post-close 
movements between 4:00 and 5:30 p.m. Eastern Time that indicates that 
GLD, SLV, and TLT are generally less volatile (strike-wise) than SPY, 
QQQ, and IWM.\26\ Further, the Exchange provided data that shows that 
GLD, SLV, and TLT are generally less volatile during the last 30 
minutes of trading than SPY, QQQ, and IWM.\27\
---------------------------------------------------------------------------

    \26\ See id. at 16.
    \27\ See id. at 17.
---------------------------------------------------------------------------

    The Exchange's proposal is reasonably designed as a limited 
expansion of Monday expirations. As noted above, the Exchange currently 
offers Short Term Option Daily Expirations on SPY, QQQ, and IWM, 
including Monday expirations. The Exchange proposes to limit the number 
of Monday ETP Expirations to two expirations beyond the current week. 
The Exchange also proposes to limit the listing of additional Monday 
expirations to the three ETPs, which generally have similar or lower 
volatility in terms of post-closing and end of day volatility as SPY, 
QQQ, and IWM. And, like SPY, QQQ, and IWM, the ETPs have multiple 
highly-correlated instruments available for hedging.\28\ In addition, 
the Exchange's data showing an increase in average daily contracts 
traded after the introduction of Wednesday expirations on the ETPs may 
indicate a demand for alternative expirations in the three ETPs. 
Further, the Monday ETP Expirations will be subject to the same rules 
for Monday expirations in SPY, QQQ, and IWM.
---------------------------------------------------------------------------

    \28\ See Wednesday ETP Expiration Order, supra note 10, at 
80349.
---------------------------------------------------------------------------

    Based on the foregoing, the Commission believes the proposal 
reasonably balances the Exchange's desire to accommodate market 
participants by offering a wider array of investment opportunities with 
the need to avoid unnecessary proliferation of options series. 
Additionally, this limited expansion of Monday ETP Expirations may 
provide the investing public and other market participants more 
flexibility to closely tailor their investment and hedging decisions 
using options on these ETPs, thus allowing them to better manage their 
risk exposure. For these reasons, the Commission finds that the 
proposed rule change, as modified by Amendment No. 1, is consistent 
with Section 6(b)(5) of the Act \29\ and the rules and regulations 
thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule 
Change

    Interested persons are invited to submit written data, views, and 
arguments concerning whether Amendment No. 1 is consistent with the 
Act. Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-ISE-2024-21 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-ISE-2024-21. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-ISE-2024-21 and should be 
submitted on or before September 24, 2024.

V. Accelerated Approval of the Proposed Rule Change, as Modified by 
Amendment No. 1

    The Commission finds good cause to approve the proposed rule 
change, as modified by Amendment No. 1, prior to the thirtieth day 
after the date of publication of notice of the filing of Amendment No. 
1 in the Federal Register. As discussed above, in Amendment No. 1, the 
narrowed the scope of the proposed rule change to remove all aspects of 
the proposal that would have permitted the Exchange to list two Monday 
expirations for options on USO and UNG. The Commission believes that 
Amendment No. 1 merely narrows the scope of the proposed rule change, 
does not otherwise alter the substance of the proposed rule change, and 
does not raise any novel regulatory issues. Accordingly, the Commission 
finds good cause, pursuant to Section 19(b)(2) of the Act,\30\ to 
approve the proposed rule change, as modified by Amendment No. 1, on an 
accelerated basis.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\31\ that the proposed rule change (SR-ISE-2024-21), as modified by 
Amendment No. 1, be and hereby is, approved on an accelerated basis.
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    \31\ 15 U.S.C. 78f(b)(2).


[[Page 71773]]


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    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-19663 Filed 8-30-24; 8:45 am]
BILLING CODE 8011-01-P
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