Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend Exchange Rule 4.3 To List and Trade Options on Units That Represent Interests in Ethereum Exchange-Traded Products, 83723-83724 [2024-23982]
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Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices
investors and listed companies.’’ 19 The
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’ 20 Accordingly, the
Exchange does not believe its proposed
change imposes 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
The Exchange neither solicited nor
received comments on the proposed
rule change.
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)
of the Act 21 and paragraph (f) of Rule
19b–4 22 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 will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
ddrumheller on DSK120RN23PROD with NOTICES1
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.
19 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
20 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C.
Cir. 2010) (quoting Securities Exchange Act Release
No. 59039 (December 2, 2008), 73 FR 74770, 74782–
83 (December 9, 2008) (SR–NYSEArca–2006–21)).
21 15 U.S.C. 78s(b)(3)(A).
22 17 CFR 240.19b–4(f).
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Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–101321; File No. SR–
CBOE–2024–036]
• 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–
CboeEDGX–2024–061 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–CboeEDGX–2024–061. 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–CboeEDGX–2024–061 and should be
submitted on or before November 7,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–23904 Filed 10–16–24; 8:45 am]
BILLING CODE 8011–01–P
23 17
PO 00000
CFR 200.30–3(a)(12).
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Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Designation
of a Longer Period for Commission
Action on a Proposed Rule Change To
Amend Exchange Rule 4.3 To List and
Trade Options on Units That Represent
Interests in Ethereum ExchangeTraded Products
October 11, 2024.
On August 19, 2024, Cboe Exchange,
Inc. (‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend Exchange Rule 4.3 regarding the
criteria for underlying securities.
Specifically, the Exchange proposes to
amend Exchange Rule 4.3,
Interpretation and Policy .06(a)(4) to
allow the Exchange to list and trade
options on Units 3 that represent
interests in the following exchangetraded products: the Fidelity Ethereum
Fund, the 21Shares Core Ethereum ETF,
the Invesco Galaxy Ethereum ETF, the
Franklin Ethereum ETF, the VanEck
Ethereum Trust, the Grayscale Ethereum
Trust, the Grayscale Mini Ethereum
Trust, the Bitwise Ethereum ETF, and
the iShares Ethereum Trust ETF,
designating them as Units deemed
appropriate for options trading on the
Exchange. The proposed rule change
was published for comment in the
Federal Register on September 4, 2024.4
The Commission received no comment
letters regarding the proposed rule
change.
Section 19(b)(2) of the Act 5 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
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Exchange Rule 1.1 defines a ‘‘Unit’’ (which may
also be referred to as an exchange-traded fund
(‘‘ETF’’)) as a share or other security traded on a
national securities exchange and defined as an NMS
stock as set forth in Rule 4.3.
4 See Securities Exchange Act Release No. 100862
(Aug. 28, 2024), 89 FR 72146.
5 15 U.S.C. 78s(b)(2).
2 17
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Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is October 19,
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,6
designates December 3, 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–CBOE–2024–036).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–23982 Filed 10–16–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101322; File No. SR–
CboeBZX–2024–055]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change, as Modified by
Amendment No. 1, To Exempt ClosedEnd Management Investment
Companies Registered Under the
Investment Company Act of 1940 From
the Annual Meeting of Shareholders
Requirement Set Forth in Exchange
Rule 14.10(f)
ddrumheller on DSK120RN23PROD with NOTICES1
October 11, 2024.
I. Introduction
On June 25, 2024, Cboe BZX
Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to exempt closedend management investment companies
registered under the Investment
Company Act of 1940 (‘‘1940 Act’’) 3
from the annual meeting of shareholders
requirement set forth in Exchange Rule
14.10(f). On July 2, 2024, the Exchange
6 Id.
7 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 80a–1 et seq.
1 15
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filed Amendment No. 1 to the proposed
rule change, which replaced and
superseded the proposed rule change in
its entirety. The proposed rule change,
as modified by Amendment No. 1, was
published for comment in the Federal
Register on July 15, 2024.4 On August
28, 2024, pursuant to Section 19(b)(2) of
the Exchange Act,5 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, as modified by Amendment
No. 1.6 The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Exchange Act 7 to
determine whether to approve or
disapprove the proposed rule change, as
modified by Amendment No. 1.
II. Description of the Proposed Rule
Change, as Modified by Amendment
No. 1
BZX Rule 14.8 (General Listing
Requirements—Tier I) sets forth listing
requirements for closed-end
management investment companies
registered under the 1940 Act
(‘‘CEFs’’).8 BZX Rule 14.10(f) generally
requires that each Company 9 listing
common stock or voting preferred stock,
and their equivalents, shall hold an
annual meeting of Shareholders 10 no
later than one year after the end of the
Company’s fiscal year-end. BZX Rule
14.10(e) sets forth certain exemptions
from certain corporate governance
requirements, including certain
exemptions to the annual shareholder
meeting requirement in BZX Rule
14.10(f).11 Any CEF that would be listed
4 See Securities Exchange Act Release No. 100473
(July 9, 2024), 89 FR 57491 (‘‘Notice’’). Comments
on the proposed rule change are available at:
https://www.sec.gov/comments/sr-cboebzx-2024055/srcboebzx2024055.htm.
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No.
100867, 89 FR 71944 (Sept. 4, 2024). The
Commission designated October 13, 2024, as the
date by which the Commission shall approve or
disapprove, or institute proceedings to determine
whether to disapprove, the proposed rule change,
as modified by Amendment No. 1.
7 15 U.S.C. 78s(b)(2)(B).
8 See BZX Rules 14.8(e) and (i). The Exchange
states that the only products currently listed on the
Exchange that are registered under the 1940 Act are
those that fall within the definition of Derivative
Securities (as defined below), and that there are
currently no CEFs listed on the Exchange. See
Notice, supra note 4, at 57493 n.15.
9 The term ‘‘Company’’ means the issuer of a
security listed or applying to list on the Exchange.
See BZX Rule 14.1(a)(3).
10 The term ‘‘Shareholder’’ means a record or
beneficial owner of a security listed or applying to
list. See BZX Rule 14.1(a)(28).
11 Specifically, BZX Rule 14.10(e)(1)(F)(i)
exempts from this annual shareholder meeting
requirement issuers whose only securities listed on
PO 00000
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Fmt 4703
Sfmt 4703
on the Exchange would be required to
comply with the annual shareholder
meeting requirement set forth in BZX
Rule 14.10(f) and would not be subject
to an exemption. The Exchange
proposes to amend BZX Rule
14.10(e)(1)(E) to exempt CEFs from the
BZX Rule 14.10(f) requirement to hold
annual shareholder meetings. The
Exchange also proposes to amend
Interpretations and Policies .13
(Management Investment Companies)
and .15 (Meetings of Shareholders or
Partners) to BZX Rule 14.10 to specify
that CEFs are exempt from the annual
shareholder meeting requirement set
forth in BZX Rule 14.10(f).12
III. Proceedings To Determine Whether
To Approve or Disapprove SR–
CboeBZX–2024–055 and Grounds for
Disapproval Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Exchange Act 13 to
determine whether the proposed rule
change, as modified by Amendment No.
1, should be approved or disapproved.
Institution of proceedings is appropriate
at this time in view of the legal and
policy issues raised by the proposed
rule change. Institution of proceedings
does not indicate that the Commission
has reached any conclusions with
respect to any of the issues involved.
Pursuant to Section 19(b)(2)(B) of the
Exchange Act,14 the Commission is
providing notice of the grounds for
disapproval under consideration. The
Commission is instituting proceedings
to allow for additional analysis of the
the Exchange are nonvoting preferred securities,
debt securities or Derivative Securities. BZX Rule
14.10(e)(1)(F)(ii) defines ‘‘Derivative Securities’’ as
Commodity Futures Trust Shares (Rule 14.11(e)(7)),
Commodity Index Trust Shares (Rule 14.11(e)(6)),
Commodity-Based Trust Shares (Rule 14.11(e)(4)),
Commodity-Linked Securities (Rule 14.11(d)(K)(ii)),
Currency Trust Shares (Rule 14.11(e)(5)), Equity
Gold Shares (Rule 14.11(e)(2)), Equity Index-Linked
Securities (Rule 14.11(d)(K)(i)), ETF Shares (Rule
14.11(l)), Fixed Income Index-Linked Securities
(Rule 14.11(d)(K)(iii)), Futures-Linked Securities
(Rule 14.11(d)(K)(iv)), Index Fund Shares (Rule
14.11(c)), Index-Linked Exchangeable Notes (Rule
14.11(e)(1)), Managed Fund Shares (Rule 14.11(i)),
Managed Portfolio Shares (Rule 14.11(k)), Managed
Trust Securities (Rule 14.11(e)(10)), Multifactor
Index-Linked Securities (Rule 14.11(d)(K)(v)),
Partnership Units (Rule 14.11(e)(8)), Portfolio
Depository Receipts (Rule 14.11(b)), SEEDS (Rule
14.11(e)(12)), Tracking Fund Shares (Rule
14.11(m)), Trust Certificates (Rule 14.11(e)(3)), and
Trust Issued Receipts (Rule 14.11(f)).
12 Business development companies, which the
Exchange states are a type of closed-end
management investment company defined in
Section 2(a)(48) of the 1940 Act that are not
registered under the 1940 Act, will still be required
to comply with all of the provisions of BZX Rule
14.10. See Interpretations and Policies .13 to BZX
Rule 14.10.
13 15 U.S.C. 78s(b)(2)(B).
14 Id.
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]]>Agencies
[Federal Register Volume 89, Number 201 (Thursday, October 17, 2024)]
[Notices]
[Pages 83723-83724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23982]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101321; File No. SR-CBOE-2024-036]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To Amend Exchange Rule 4.3 To List and Trade Options on Units
That Represent Interests in Ethereum Exchange-Traded Products
October 11, 2024.
On August 19, 2024, Cboe Exchange, Inc. (``Exchange'') filed with
the Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to amend Exchange
Rule 4.3 regarding the criteria for underlying securities.
Specifically, the Exchange proposes to amend Exchange Rule 4.3,
Interpretation and Policy .06(a)(4) to allow the Exchange to list and
trade options on Units \3\ that represent interests in the following
exchange-traded products: the Fidelity Ethereum Fund, the 21Shares Core
Ethereum ETF, the Invesco Galaxy Ethereum ETF, the Franklin Ethereum
ETF, the VanEck Ethereum Trust, the Grayscale Ethereum Trust, the
Grayscale Mini Ethereum Trust, the Bitwise Ethereum ETF, and the
iShares Ethereum Trust ETF, designating them as Units deemed
appropriate for options trading on the Exchange. The proposed rule
change was published for comment in the Federal Register on September
4, 2024.\4\ The Commission received no comment letters regarding the
proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Exchange Rule 1.1 defines a ``Unit'' (which may also be
referred to as an exchange-traded fund (``ETF'')) as a share or
other security traded on a national securities exchange and defined
as an NMS stock as set forth in Rule 4.3.
\4\ See Securities Exchange Act Release No. 100862 (Aug. 28,
2024), 89 FR 72146.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \5\ 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 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
[[Page 83724]]
proposed rule change should be disapproved. The 45th day after
publication of the notice for this proposed rule change is October 19,
2024. The Commission is extending this 45-day time period.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
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,\6\ designates
December 3, 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-CBOE-2024-036).
---------------------------------------------------------------------------
\6\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-23982 Filed 10-16-24; 8:45 am]
BILLING CODE 8011-01-P
