Self-Regulatory Organizations; MIAX PEARL LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 404, Series of Option Contracts Open for Trading, To Amend the Short Term Option Series Program, 79660-79664 [2024-22266]
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79660
Federal Register / Vol. 89, No. 189 / Monday, September 30, 2024 / Notices
Accordingly, the Exchange believes
the proposal is reasonable, equitable
and not unfairly discriminatory.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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Intra-Market Competition
The Exchange believes the proposal to
pass through the cost of any materials
that are necessary for the Exchange’s onsite engineers to complete the requested
technical support will not result in any
burden on intra-market competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because the Exchange will only passthrough the actual costs it is charged by
third-party external vendors for such
materials. At least one competing
options exchange group similarly passes
along charges assessed to those
exchanges by third-party external
vendors supplying materials on behalf
of that exchange group’s customers.11
Additionally, the pass through of
costs for materials will be assessed
equally to all Members and nonMembers who request technical support
that requires the Exchange to purchase
materials to complete the requested
support. The Exchange notes that
Members and non-Members are not
required to use the service. The
Exchange offers this service as a
convenience to all Members and nonMembers. The Exchange believes the
proposal will not impose any burden on
intra-market competition because it will
permit both Members and non-Members
to request the use of the Exchange’s onsite data center personnel as technical
support and as a convenience in order
to test or otherwise assess the user’s
connectivity to the Exchange via its data
centers.
Inter-Market Competition
The Exchange believes that the
proposed changes will not result in any
burden on inter-market competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
As discussed above, market participants
are not forced to connect to and trade
on all exchanges. The Exchange believes
that the proposed pass-through of costs
for materials for technical support will
not cause any burden on inter-market
competition because none of these
changes impact other exchanges’ ability
to compete.
Accordingly, the Exchange does not
believe its proposed fee changes impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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 Act 12 and Rule
19b–4(f)(2) 13 thereunder. At any time
within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule change
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
PEARL–2024–42 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–PEARL–2024–42. 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
U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
id.
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–22261 Filed 9–27–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101152; File No. SR–
PEARL–2024–45]
Self-Regulatory Organizations; MIAX
PEARL LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange
Rule 404, Series of Option Contracts
Open for Trading, To Amend the Short
Term Option Series Program
September 24, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 16, 2024, MIAX PEARL, LLC
(‘‘MIAX Pearl’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
14 17
12 15
11 See
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–PEARL–2024–42 and should be
submitted on or before October 21,
2024.
PO 00000
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CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 89, No. 189 / Monday, September 30, 2024 / Notices
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the Short Term Option Series
Program in Interpretations and Policies
.02 of Exchange Rule 404, Series of
Option Contracts Open for Trading.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-equities/pearl-equities/rule-filings, at
MIAX Pearl’s principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
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The Exchange proposes to amend the
Short Term Option Series Program in
Interpretations and Policies .02 of
Exchange Rule 404, Series of Option
Contracts Open for Trading.3
Specifically, the Exchange proposes to
expand the Short Term Option Series
Program to permit the listing of two
Monday expirations for options on
SPDR Gold Shares (‘‘GLD’’), iShares
Silver Trust (‘‘SLV’’), and iShares 20+
Year Treasury Bond ETF (‘‘TLT’’)
(collectively ‘‘Exchange Traded
Products’’ or ‘‘ETPs’’).4 This is a
competitive filing based on a similar
proposal submitted by Nasdaq ISE, LLC
(‘‘ISE’’) and approved by the Securities
3 The Exchange notes that its affiliate exchanges,
MIAX Options and MIAX Sapphire, submitted
substantively identical proposals.
4 Today, the Exchange permits the listing of two
Wednesday expirations for options on GLD, SLV,
and TLT. See Securities Exchange Act Release No.
99180 (December 14, 2023), 88 FR 88148 (December
20, 2023) (SR–PEARL–2023–70) (‘‘Wednesday
Approval Order’’).
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and Exchange Commission
(‘‘Commission’’).5
Currently, as set forth in
Interpretations and Policies .02 of
Exchange Rule 404, after an option class
has been approved for listing and
trading on the Exchange as a Short Term
Option Series,6 the Exchange may open
for trading on any Thursday or Friday
that is a business day (‘‘Short Term
Option Opening Date’’) series of options
on that class that expire at the close of
business on each of the next five Fridays
that are business days and are not
Fridays in which standard expiration
options series, Monthly Options Series,
or Quarterly Options Series expire
(‘‘Friday Short Term Option Expiration
Dates’’). The Exchange may have no
more than a total of five Short Term
Option Friday Expiration Dates (‘‘Short
Term Option Weekly Expirations’’).
Further, if the Exchange is not open for
business on the respective Thursday or
Friday, the Short Term Option Opening
Date for Short Term Option Weekly
Expirations will be the first business
day immediately prior to that respective
Thursday or Friday. Similarly, if the
Exchange is not open for business on a
Friday, the Short Term Option
Expiration Date for Short Term Option
Weekly Expirations will be the first
business day immediately prior to that
Friday.
Additionally, the Exchange may open
for trading series of options on the
symbols provided in Table 1 of
Interpretations and Policies .02 of
Exchange Rule 404 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
5 See Securities Exchange Act Release No. 100837
(August 27, 2024), 89 FR 71770 (September 3, 2024)
(SR–ISE–2024–21) (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).
6 The term ‘‘Short Term Option Series’’ is a series
in an option class that is approved for listing and
trading on the Exchange in which the series is
opened for trading on any Monday, Tuesday,
Wednesday, Thursday or Friday that is a business
day and that expires on the Monday, Tuesday,
Wednesday, Thursday, or Friday of the next
business week, or, in the case of a series that is
listed on a Friday and expires on a Monday, is
listed one business week and one business day
prior to that expiration. If a Tuesday, Wednesday,
Thursday or Friday is not a business day, the series
may be opened (or shall expire) on the first business
day immediately prior to that Tuesday, Wednesday,
Thursday or Friday, respectively. For a series listed
pursuant to this section for Monday expiration, if
a Monday is not a business day, the series shall
expire on the first business day immediately
following that Monday. See Exchange Rule 100.
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79661
standard expiration options series,
Monthly Options Series, or Quarterly
Options Series expire (‘‘Short Term
Option Daily Expirations’’).7 For those
symbols listed in Table 1, the Exchange
may have no more than a total of two
Short Term Option Daily Expirations
beyond the current week for each of
Monday, Tuesday, Wednesday, and
Thursday expirations, as applicable, at
one time.
Proposal
At this time, the Exchange proposes to
expand the Short Term Option Daily
Expirations to permit the listing and
trading of options on GLD, SLV, and
TLT expiring on Mondays. The
Exchange proposes to permit two Short
Term Option Expiration Dates beyond
the current week for each Monday
expiration at one time, and would
update Table 1 in Interpretations and
Policies .02 of Exchange Rule 404 for
each of those symbols accordingly.
The proposed Monday GLD, SLV, and
TLT expirations will be similar to the
current Monday SPY, QQQ, and IWM
Short Term Option Daily Expirations set
forth in Interpretations and Policies .02
of Exchange Rule 404, 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,
provided that Monday expirations that
are listed on a Friday must be listed at
least one business week and one
business day prior to the expiration
(‘‘Monday GLD Expirations,’’ ‘‘Monday
SLV Expirations,’’ and ‘‘Monday TLT
Expirations’’) (collectively, ‘‘Monday
ETP Expirations’’).8 In the event Short
Term Option Daily Expirations 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; the
two weeks would therefore not be
consecutive. 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
7 As set forth in Table 1 in Interpretations and
Policies .02 of Exchange Rule 404, the Exchange
currently only permits Wednesday expirations for
USO, UNG, GLD, SLV, and TLT.
8 Today, GLD, SLV, and TLT may trade on
Wednesdays. See supra note 4. They may also trade
on Fridays, as is the case for all options series in
the Short Term Option Series Program.
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expiration options series, Monthly
Options Series, or Quarterly Options
Series.
The interval between strike prices for
the proposed Monday ETP Expirations
will be the same as those currently
applicable to the Short Term Option
Series Program.9 Specifically, the
Monday ETP Expirations will 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 $150.10 As
is the case with other equity options
series listed pursuant to the Short Term
Option Series Program, the Monday ETP
Expirations series will be P.M.-settled.
Pursuant to the Exchange’s definition
of the Short Term Option Series
Program, if a Monday is not a business
day, the series shall expire on the first
business day immediately following that
Monday.11
Currently, for each option class
eligible for participation in the Short
Term Option Series Program, the
Exchange is limited to opening thirty
(30) series for each expiration date for
the specific class.12 The thirty (30)
series restriction does not include series
that are open by other securities
exchanges under their respective weekly
rules; the Exchange may list these
additional series that are listed by other
options exchanges.13 With the proposed
changes, this thirty (30) series
restriction would apply to Monday GLD,
SLV, and TLT Short Term Option Daily
Expirations as well. In addition, the
Exchange will be able to list series that
are listed by other exchanges, assuming
they file similar rules with the
Commission to list Monday ETP
Expirations.
With this proposal, Monday ETP
Expirations would be treated similarly
to existing Monday SPY, QQQ, and
IWM Expirations. With respect to
standard expiration option series, Short
Term Option Daily Expirations will be
permitted to expire in the same week in
which standard expiration option series
on the same class expire.14 Not listing
Short Term Option Daily Expirations for
9 See Interpretations and Policies .02(e) of
Exchange Rule 404.
10 Id.
11 See supra note 6.
12 See Interpretations and Policies .02(a) of
Exchange Rule 404.
13 Id.
14 See Interpretations and Policies .02(b) of
Exchange Rule 404.
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one week every month because there
was a standard options series on that
same class on the Friday of that week
would create investor confusion.
Further, as with Monday SPY, QQQ,
and IWM Expirations, the Exchange
would not permit Monday ETP
Expirations to expire on a business day
in which standard expiration option
series, Monthly Options Series, or
Quarterly Options Series expire.15
Therefore, all Short Term Option Daily
Expirations would expire at the close of
business on each of the next two
Mondays, Tuesdays, Wednesdays, and
Thursdays, respectively, that are
business days and are not business days
in which standard expiration option
series, Monthly Options Series, or
Quarterly Options Series expire. The
Exchange believes that it is reasonable
to not permit two expirations on the
same day in which a standard
expiration option series, Monthly
Options Series, a Quarterly Options
Series would expire because those
options would be duplicative of each
other.
The Exchange does not believe that
any market disruptions will be
encountered with the introduction of
Monday ETP Expirations. The Exchange
currently trades P.M.-settled Short Term
Option Series that expire Monday for
SPY, QQQ and IWM and has not
experienced any market disruptions nor
issues with capacity. In addition, the
Exchange has not experienced any
market disruptions or issues with
capacity in expanding the three ETPs to
the Wednesday expirations.16 Today,
the Exchange has surveillance programs
in place to support and properly
monitor trading in Short Term Option
Series that expire Monday for SPY,
QQQ and IWM. Further, the Exchange
has the necessary capacity and
surveillance programs in place to
support and properly monitor trading in
the proposed Monday ETP Expirations.
2. Statutory Basis
The Exchange believes that its
proposed rule change is consistent with
the Act and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.17 Specifically,
the Exchange believes that its proposed
rule change is consistent with Section
6(b)(5) 18 requirements in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
15 See Interpretations and Policies .02 of
Exchange Rule 404.
16 See supra note 4.
17 15 U.S.C. 78f(b).
18 15 U.S.C. 78f(b)(5).
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promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in, securities, 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.
Similar to Monday expirations in
SPY, QQQ, and IWM, the proposal to
permit Monday ETP Expirations, subject
to the proposed limitation of two
expirations beyond the current week,
would protect investors and the public
interest by providing the investing
public and other market participants
more choice and flexibility to closely
tailor their investment and hedging
decisions in these options and allow for
a reduced premium cost of buying
portfolio protection, thus allowing them
to better manage their risk exposure.
The Exchange represents that it has an
adequate surveillance program in place
to detect manipulative trading in the
proposed option expirations, in the
same way that it monitors trading in the
current Short Term Option Series for
Monday SPY, QQQ and IWM
expirations. The Exchange also
represents that it has the necessary
system capacity to support the new
expirations. Finally, the Exchange does
not believe that any market disruptions
will be encountered with the
introduction of these option expirations.
As discussed above, the Exchange
believes that its proposal is a modest
expansion of weekly expiration dates for
GLD, SLV, and TLT given that it will be
limited to two Monday expirations
beyond the current week. Lastly, the
Exchange believes that its proposal will
not be a strain on liquidity providers
because of the multi-class nature of
GLD, SLV, and TLT and the available
hedges in highly correlated instruments.
The Exchange believes that the
proposal is consistent with the Act as
the proposal would overall add a small
number of Monday ETP Expirations by
limiting the addition of two Monday
expirations beyond the current week.
The addition of Monday ETP
Expirations would remove impediments
to and perfect the mechanism of a free
and open market by encouraging Market
Makers 19 to continue to deploy capital
19 The term ‘‘Market Maker’’ or ‘‘MM’’ means a
Member registered with the Exchange for the
purpose of making markets in options contracts
traded on the Exchange and that is vested with the
rights and responsibilities specified in Chapter VI
of the Exchange Rules. See Exchange Rule 100. The
term ‘‘Member’’ means an individual or
organization that is registered with the Exchange
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Federal Register / Vol. 89, No. 189 / Monday, September 30, 2024 / Notices
more efficiently and improve market
quality. The Exchange believes that the
proposal will allow market participants
to expand hedging tools and tailor their
investment and hedging needs more
effectively in GLD, SLV, and TLT as
these funds are most likely to be utilized
by market participants to hedge the
underlying asset classes. As stated in
the Wednesday Approval Order, the
ETPs currently trade within
‘‘complexes’’ where, in addition to the
underlying security, there are multiple
instruments available for hedging. Given
the multi-asset class nature of these
products and available hedges in highlycorrelated instruments, the Exchange
believes that its proposal to add Monday
expirations on these products will
provide market participants with
additional useful hedging tools for the
underlying asset classes.
Similar to Monday SPY, QQQ, and
IWM expirations, the introduction of
Monday ETP Expirations is consistent
with the Act as it will, among other
things, expand hedging tools available
to market participants and allow for a
reduced premium cost of buying
portfolio protection. The Exchange
believes that Monday ETP Expirations
will allow market participants to
purchase options on GLD, SLV, and TLT
based on their timing as needed and
allow them to tailor their investment
and hedging needs more effectively,
thus allowing them to better manage
their risk exposure. Today, the
Exchange lists Monday SPY, QQQ, and
IWM Expirations.20
The Exchange believes the Short Term
Option Series Program has been
successful to date and that Monday ETP
Expirations should simply expand the
ability of investors to hedge risk against
market movements stemming from
economic releases or market events that
occur throughout the month in the same
way that the Short Term Option Series
Program has expanded the landscape of
hedging.
There are no material differences in
the treatment of Monday SPY, QQQ and
IWM expirations compared to the
proposed Monday ETP Expirations.
Given the similarities between Monday
SPY, QQQ and IWM expirations and the
proposed Monday ETP Expirations, the
Exchange believes that applying the
provisions in Interpretations and
Policies .02 of Exchange Rule 404 that
currently apply to Monday SPY, QQQ
pursuant to Chapter II of these Rules for purposes
of trading on the Exchange as an ‘‘Electronic
Exchange Member’’ or ‘‘Market Maker.’’ Members
are deemed ‘‘members’’ under the Act. See
Exchange Rule 100.
20 See Interpretations and Policies .02 of
Exchange Rule 404.
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and IWM expirations is justified. For
example, the Exchange believes that
allowing Monday ETP Expirations and
monthly Exchange Traded Product
expirations in the same week will
benefit investors and minimize investor
confusion by providing Monday ETP
Expirations in a continuous and
uniform manner.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. In this regard
and as indicated above, the Exchange
notes that the rule change is being
proposed as a competitive response to
filings submitted by ISE.21
While the proposal will expand the
Short Term Options Expirations to
allow Monday ETP Expirations to be
listed on the Exchange, the Exchange
believes that this limited expansion for
Monday expirations for options on GLD,
SLV, and TLT will not impose an undue
burden on competition; rather, it will
meet customer demand. The Exchange
believes that market participants will
continue to be able to expand hedging
tools and tailor their investment and
hedging needs more effectively in GLD,
SLV, and TLT.
Similar to Monday SPY, QQQ and
IWM expirations, the introduction of
Monday ETP Expirations does not
impose an undue burden on
competition. The Exchange believes that
it will, among other things, expand
hedging tools available to market
participants and allow for a reduced
premium cost of buying portfolio
protection. The Exchange believes that
Monday ETP Expirations will allow
market participants to purchase options
on GLD, SLV, and TLT based on their
timing as needed and allow them to
tailor their investment and hedging
needs more effectively.
The Exchange does not believe that
the proposal will impose any burden on
intermarket competition, as nothing
prevents the other options exchanges
from proposing similar rules to list and
trade Monday ETP Expirations. Further,
the Exchange does not believe that the
proposal will impose any burden on
intra-market competition, as all market
participants will be treated in the same
manner under this proposal.
21 See
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79663
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 22 and Rule
19b–4(f)(6) thereunder.23 Because the
foregoing proposed rule change does
not: (i) significantly affect the protection
of investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 24 and
subparagraph (f)(6) of Rule 19b–4
thereunder.25
A proposed rule change filed under
Rule 19b–4(f)(6) 26 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),27 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. According to the Exchange, the
proposed rule change is a competitive
response to a filing submitted by ISE
that recently was approved by the
Commission.28 The Exchange has stated
that waiver of the operative delay is
consistent with the protection of
investors and the public interest
because it will ensure fair competition
among the exchanges by allowing the
Exchange to permit the listing of
Monday Short Term Daily Expirations
for options on GLD, SLV, and TLT at the
same time as ISE. The Commission
believes that the proposed rule change
presents no novel issues and that waiver
of the 30-day operative delay is
22 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
24 15 U.S.C. 78s(b)(3)(A)(iii).
25 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
26 17 CFR 240.19b–4(f)(6).
27 17 CFR 240.19b–4(f)(6)(iii).
28 See supra note 5.
23 17
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ddrumheller on DSK120RN23PROD with NOTICES1
79664
Federal Register / Vol. 89, No. 189 / Monday, September 30, 2024 / Notices
consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposed rule change as
operative upon filing.29
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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–PEARL–2024–45 and should be
submitted on or before October 21,
2024.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Vanessa A. Countryman,
Secretary.
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–
PEARL–2024–45 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–PEARL–2024–45. 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
29 For
purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
17:51 Sep 27, 2024
Jkt 262001
[FR Doc. 2024–22266 Filed 9–27–24; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–101154; File No. SR–ISE–
2024–35]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change To List
and Trade Options on the iShares
Ethereum Trust
September 24, 2024.
On July 22, 2024, Nasdaq ISE, LLC
(‘‘ISE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to amend Options
4, Section 3, Criteria for Underlying
Securities, to allow ISE to list and trade
options on the iShares Ethereum Trust.
The proposed rule change was
published for comment in the Federal
Register on August 12, 2024.3 The
Commission received no comment
letters regarding the proposed rule
change.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 100661
(Aug. 6, 2024), 89 FR 65690.
4 15 U.S.C. 78s(b)(2).
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
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. The 45th day after
publication of the notice for this
proposed rule change is September 26,
2024. The Commission is extending this
45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates November 10, 2024, as the
date by which the Commission shall
either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File No. SR–ISE–2024–35).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–22267 Filed 9–27–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101150; File No. SR–NYSE–
2024–58]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change To
Amend NYSE Rule 7.13
September 24, 2024.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on
September 12, 2024, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
30 17
1 15
PO 00000
Frm 00164
Fmt 4703
Sfmt 4703
5 Id.
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\30SEN1.SGM
30SEN1
]]>Agencies
[Federal Register Volume 89, Number 189 (Monday, September 30, 2024)]
[Notices]
[Pages 79660-79664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22266]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101152; File No. SR-PEARL-2024-45]
Self-Regulatory Organizations; MIAX PEARL LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 404, Series of Option Contracts Open for Trading, To Amend the
Short Term Option Series Program
September 24, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 16, 2024, MIAX PEARL, LLC (``MIAX Pearl'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The
[[Page 79661]]
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the Short Term Option
Series Program in Interpretations and Policies .02 of Exchange Rule
404, Series of Option Contracts Open for Trading.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings, at MIAX Pearl's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Short Term Option Series Program
in Interpretations and Policies .02 of Exchange Rule 404, Series of
Option Contracts Open for Trading.\3\ Specifically, the Exchange
proposes to expand the Short Term Option Series Program to permit the
listing of two Monday expirations for options on SPDR Gold Shares
(``GLD''), iShares Silver Trust (``SLV''), and iShares 20+ Year
Treasury Bond ETF (``TLT'') (collectively ``Exchange Traded Products''
or ``ETPs'').\4\ This is a competitive filing based on a similar
proposal submitted by Nasdaq ISE, LLC (``ISE'') and approved by the
Securities and Exchange Commission (``Commission'').\5\
---------------------------------------------------------------------------
\3\ The Exchange notes that its affiliate exchanges, MIAX
Options and MIAX Sapphire, submitted substantively identical
proposals.
\4\ Today, the Exchange permits the listing of two Wednesday
expirations for options on GLD, SLV, and TLT. See Securities
Exchange Act Release No. 99180 (December 14, 2023), 88 FR 88148
(December 20, 2023) (SR-PEARL-2023-70) (``Wednesday Approval
Order'').
\5\ See Securities Exchange Act Release No. 100837 (August 27,
2024), 89 FR 71770 (September 3, 2024) (SR-ISE-2024-21) (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).
---------------------------------------------------------------------------
Currently, as set forth in Interpretations and Policies .02 of
Exchange Rule 404, after an option class has been approved for listing
and trading on the Exchange as a Short Term Option Series,\6\ the
Exchange may open for trading on any Thursday or Friday that is a
business day (``Short Term Option Opening Date'') series of options on
that class that expire at the close of business on each of the next
five Fridays that are business days and are not Fridays in which
standard expiration options series, Monthly Options Series, or
Quarterly Options Series expire (``Friday Short Term Option Expiration
Dates''). The Exchange may have no more than a total of five Short Term
Option Friday Expiration Dates (``Short Term Option Weekly
Expirations''). Further, if the Exchange is not open for business on
the respective Thursday or Friday, the Short Term Option Opening Date
for Short Term Option Weekly Expirations will be the first business day
immediately prior to that respective Thursday or Friday. Similarly, if
the Exchange is not open for business on a Friday, the Short Term
Option Expiration Date for Short Term Option Weekly Expirations will be
the first business day immediately prior to that Friday.
---------------------------------------------------------------------------
\6\ The term ``Short Term Option Series'' is a series in an
option class that is approved for listing and trading on the
Exchange in which the series is opened for trading on any Monday,
Tuesday, Wednesday, Thursday or Friday that is a business day and
that expires on the Monday, Tuesday, Wednesday, Thursday, or Friday
of the next business week, or, in the case of a series that is
listed on a Friday and expires on a Monday, is listed one business
week and one business day prior to that expiration. If a Tuesday,
Wednesday, Thursday or Friday is not a business day, the series may
be opened (or shall expire) on the first business day immediately
prior to that Tuesday, Wednesday, Thursday or Friday, respectively.
For a series listed pursuant to this section for Monday expiration,
if a Monday is not a business day, the series shall expire on the
first business day immediately following that Monday. See Exchange
Rule 100.
---------------------------------------------------------------------------
Additionally, the Exchange may open for trading series of options
on the symbols provided in Table 1 of Interpretations and Policies .02
of Exchange Rule 404 that expire at the close of business on each of
the next two Mondays, Tuesdays, Wednesdays, and Thursdays,
respectively, that are business days beyond the current week and are
not business days in which standard expiration options series, Monthly
Options Series, or Quarterly Options Series expire (``Short Term Option
Daily Expirations'').\7\ For those symbols listed in Table 1, the
Exchange may have no more than a total of two Short Term Option Daily
Expirations beyond the current week for each of Monday, Tuesday,
Wednesday, and Thursday expirations, as applicable, at one time.
---------------------------------------------------------------------------
\7\ As set forth in Table 1 in Interpretations and Policies .02
of Exchange Rule 404, the Exchange currently only permits Wednesday
expirations for USO, UNG, GLD, SLV, and TLT.
---------------------------------------------------------------------------
Proposal
At this time, the Exchange proposes to expand the Short Term Option
Daily Expirations to permit the listing and trading of options on GLD,
SLV, and TLT expiring on Mondays. The Exchange proposes to permit two
Short Term Option Expiration Dates beyond the current week for each
Monday expiration at one time, and would update Table 1 in
Interpretations and Policies .02 of Exchange Rule 404 for each of those
symbols accordingly.
The proposed Monday GLD, SLV, and TLT expirations will be similar
to the current Monday SPY, QQQ, and IWM Short Term Option Daily
Expirations set forth in Interpretations and Policies .02 of Exchange
Rule 404, 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, provided that Monday expirations that are listed on a Friday
must be listed at least one business week and one business day prior to
the expiration (``Monday GLD Expirations,'' ``Monday SLV Expirations,''
and ``Monday TLT Expirations'') (collectively, ``Monday ETP
Expirations'').\8\ In the event Short Term Option Daily Expirations
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; the two weeks would therefore not be
consecutive. 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
[[Page 79662]]
expiration options series, Monthly Options Series, or Quarterly Options
Series.
---------------------------------------------------------------------------
\8\ Today, GLD, SLV, and TLT may trade on Wednesdays. See supra
note 4. They may also trade on Fridays, as is the case for all
options series in the Short Term Option Series Program.
---------------------------------------------------------------------------
The interval between strike prices for the proposed Monday ETP
Expirations will be the same as those currently applicable to the Short
Term Option Series Program.\9\ Specifically, the Monday ETP Expirations
will 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.\10\ As is the case with
other equity options series listed pursuant to the Short Term Option
Series Program, the Monday ETP Expirations series will be P.M.-settled.
---------------------------------------------------------------------------
\9\ See Interpretations and Policies .02(e) of Exchange Rule
404.
\10\ Id.
---------------------------------------------------------------------------
Pursuant to the Exchange's definition of the Short Term Option
Series Program, if a Monday is not a business day, the series shall
expire on the first business day immediately following that Monday.\11\
---------------------------------------------------------------------------
\11\ See supra note 6.
---------------------------------------------------------------------------
Currently, for each option class eligible for participation in the
Short Term Option Series Program, the Exchange is limited to opening
thirty (30) series for each expiration date for the specific class.\12\
The thirty (30) series restriction does not include series that are
open by other securities exchanges under their respective weekly rules;
the Exchange may list these additional series that are listed by other
options exchanges.\13\ With the proposed changes, this thirty (30)
series restriction would apply to Monday GLD, SLV, and TLT Short Term
Option Daily Expirations as well. In addition, the Exchange will be
able to list series that are listed by other exchanges, assuming they
file similar rules with the Commission to list Monday ETP Expirations.
---------------------------------------------------------------------------
\12\ See Interpretations and Policies .02(a) of Exchange Rule
404.
\13\ Id.
---------------------------------------------------------------------------
With this proposal, Monday ETP Expirations would be treated
similarly to existing Monday SPY, QQQ, and IWM Expirations. With
respect to standard expiration option series, Short Term Option Daily
Expirations will be permitted to expire in the same week in which
standard expiration option series on the same class expire.\14\ Not
listing Short Term Option Daily Expirations for one week every month
because there was a standard options series on that same class on the
Friday of that week would create investor confusion.
---------------------------------------------------------------------------
\14\ See Interpretations and Policies .02(b) of Exchange Rule
404.
---------------------------------------------------------------------------
Further, as with Monday SPY, QQQ, and IWM Expirations, the Exchange
would not permit Monday ETP Expirations to expire on a business day in
which standard expiration option series, Monthly Options Series, or
Quarterly Options Series expire.\15\ Therefore, all Short Term Option
Daily Expirations would expire at the close of business on each of the
next two Mondays, Tuesdays, Wednesdays, and Thursdays, respectively,
that are business days and are not business days in which standard
expiration option series, Monthly Options Series, or Quarterly Options
Series expire. The Exchange believes that it is reasonable to not
permit two expirations on the same day in which a standard expiration
option series, Monthly Options Series, a Quarterly Options Series would
expire because those options would be duplicative of each other.
---------------------------------------------------------------------------
\15\ See Interpretations and Policies .02 of Exchange Rule 404.
---------------------------------------------------------------------------
The Exchange does not believe that any market disruptions will be
encountered with the introduction of Monday ETP Expirations. The
Exchange currently trades P.M.-settled Short Term Option Series that
expire Monday for SPY, QQQ and IWM and has not experienced any market
disruptions nor issues with capacity. In addition, the Exchange has not
experienced any market disruptions or issues with capacity in expanding
the three ETPs to the Wednesday expirations.\16\ Today, the Exchange
has surveillance programs in place to support and properly monitor
trading in Short Term Option Series that expire Monday for SPY, QQQ and
IWM. Further, the Exchange has the necessary capacity and surveillance
programs in place to support and properly monitor trading in the
proposed Monday ETP Expirations.
---------------------------------------------------------------------------
\16\ See supra note 4.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\17\ Specifically, the Exchange believes that its proposed rule
change is consistent with Section 6(b)(5) \18\ requirements in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in, securities, 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.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Similar to Monday expirations in SPY, QQQ, and IWM, the proposal to
permit Monday ETP Expirations, subject to the proposed limitation of
two expirations beyond the current week, would protect investors and
the public interest by providing the investing public and other market
participants more choice and flexibility to closely tailor their
investment and hedging decisions in these options and allow for a
reduced premium cost of buying portfolio protection, thus allowing them
to better manage their risk exposure.
The Exchange represents that it has an adequate surveillance
program in place to detect manipulative trading in the proposed option
expirations, in the same way that it monitors trading in the current
Short Term Option Series for Monday SPY, QQQ and IWM expirations. The
Exchange also represents that it has the necessary system capacity to
support the new expirations. Finally, the Exchange does not believe
that any market disruptions will be encountered with the introduction
of these option expirations. As discussed above, the Exchange believes
that its proposal is a modest expansion of weekly expiration dates for
GLD, SLV, and TLT given that it will be limited to two Monday
expirations beyond the current week. Lastly, the Exchange believes that
its proposal will not be a strain on liquidity providers because of the
multi-class nature of GLD, SLV, and TLT and the available hedges in
highly correlated instruments.
The Exchange believes that the proposal is consistent with the Act
as the proposal would overall add a small number of Monday ETP
Expirations by limiting the addition of two Monday expirations beyond
the current week. The addition of Monday ETP Expirations would remove
impediments to and perfect the mechanism of a free and open market by
encouraging Market Makers \19\ to continue to deploy capital
[[Page 79663]]
more efficiently and improve market quality. The Exchange believes that
the proposal will allow market participants to expand hedging tools and
tailor their investment and hedging needs more effectively in GLD, SLV,
and TLT as these funds are most likely to be utilized by market
participants to hedge the underlying asset classes. As stated in the
Wednesday Approval Order, the ETPs currently trade within ``complexes''
where, in addition to the underlying security, there are multiple
instruments available for hedging. Given the multi-asset class nature
of these products and available hedges in highly-correlated
instruments, the Exchange believes that its proposal to add Monday
expirations on these products will provide market participants with
additional useful hedging tools for the underlying asset classes.
---------------------------------------------------------------------------
\19\ The term ``Market Maker'' or ``MM'' means a Member
registered with the Exchange for the purpose of making markets in
options contracts traded on the Exchange and that is vested with the
rights and responsibilities specified in Chapter VI of the Exchange
Rules. See Exchange Rule 100. The term ``Member'' means an
individual or organization that is registered with the Exchange
pursuant to Chapter II of these Rules for purposes of trading on the
Exchange as an ``Electronic Exchange Member'' or ``Market Maker.''
Members are deemed ``members'' under the Act. See Exchange Rule 100.
---------------------------------------------------------------------------
Similar to Monday SPY, QQQ, and IWM expirations, the introduction
of Monday ETP Expirations is consistent with the Act as it will, among
other things, expand hedging tools available to market participants and
allow for a reduced premium cost of buying portfolio protection. The
Exchange believes that Monday ETP Expirations will allow market
participants to purchase options on GLD, SLV, and TLT based on their
timing as needed and allow them to tailor their investment and hedging
needs more effectively, thus allowing them to better manage their risk
exposure. Today, the Exchange lists Monday SPY, QQQ, and IWM
Expirations.\20\
---------------------------------------------------------------------------
\20\ See Interpretations and Policies .02 of Exchange Rule 404.
---------------------------------------------------------------------------
The Exchange believes the Short Term Option Series Program has been
successful to date and that Monday ETP Expirations should simply expand
the ability of investors to hedge risk against market movements
stemming from economic releases or market events that occur throughout
the month in the same way that the Short Term Option Series Program has
expanded the landscape of hedging.
There are no material differences in the treatment of Monday SPY,
QQQ and IWM expirations compared to the proposed Monday ETP
Expirations. Given the similarities between Monday SPY, QQQ and IWM
expirations and the proposed Monday ETP Expirations, the Exchange
believes that applying the provisions in Interpretations and Policies
.02 of Exchange Rule 404 that currently apply to Monday SPY, QQQ and
IWM expirations is justified. For example, the Exchange believes that
allowing Monday ETP Expirations and monthly Exchange Traded Product
expirations in the same week will benefit investors and minimize
investor confusion by providing Monday ETP Expirations in a continuous
and uniform manner.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. In this regard and as
indicated above, the Exchange notes that the rule change is being
proposed as a competitive response to filings submitted by ISE.\21\
---------------------------------------------------------------------------
\21\ See supra note 5.
---------------------------------------------------------------------------
While the proposal will expand the Short Term Options Expirations
to allow Monday ETP Expirations to be listed on the Exchange, the
Exchange believes that this limited expansion for Monday expirations
for options on GLD, SLV, and TLT will not impose an undue burden on
competition; rather, it will meet customer demand. The Exchange
believes that market participants will continue to be able to expand
hedging tools and tailor their investment and hedging needs more
effectively in GLD, SLV, and TLT.
Similar to Monday SPY, QQQ and IWM expirations, the introduction of
Monday ETP Expirations does not impose an undue burden on competition.
The Exchange believes that it will, among other things, expand hedging
tools available to market participants and allow for a reduced premium
cost of buying portfolio protection. The Exchange believes that Monday
ETP Expirations will allow market participants to purchase options on
GLD, SLV, and TLT based on their timing as needed and allow them to
tailor their investment and hedging needs more effectively.
The Exchange does not believe that the proposal will impose any
burden on intermarket competition, as nothing prevents the other
options exchanges from proposing similar rules to list and trade Monday
ETP Expirations. Further, the Exchange does not believe that the
proposal will impose any burden on intra-market competition, as all
market participants will be treated in the same manner under this
proposal.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \22\ and Rule 19b-4(f)(6) thereunder.\23\
Because the foregoing proposed rule change does not: (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, it has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act \24\ and subparagraph (f)(6) of
Rule 19b-4 thereunder.\25\
---------------------------------------------------------------------------
\22\ 15 U.S.C. 78s(b)(3)(A)(iii).
\23\ 17 CFR 240.19b-4(f)(6).
\24\ 15 U.S.C. 78s(b)(3)(A)(iii).
\25\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \26\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\27\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. According to
the Exchange, the proposed rule change is a competitive response to a
filing submitted by ISE that recently was approved by the
Commission.\28\ The Exchange has stated that waiver of the operative
delay is consistent with the protection of investors and the public
interest because it will ensure fair competition among the exchanges by
allowing the Exchange to permit the listing of Monday Short Term Daily
Expirations for options on GLD, SLV, and TLT at the same time as ISE.
The Commission believes that the proposed rule change presents no novel
issues and that waiver of the 30-day operative delay is
[[Page 79664]]
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposed rule change as operative upon filing.\29\
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\26\ 17 CFR 240.19b-4(f)(6).
\27\ 17 CFR 240.19b-4(f)(6)(iii).
\28\ See supra note 5.
\29\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings 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:
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-PEARL-2024-45 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-PEARL-2024-45. 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-PEARL-2024-45 and should be
submitted on or before October 21, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12), (59).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22266 Filed 9-27-24; 8:45 am]
BILLING CODE 8011-01-P
