Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Short Term Options Series Program in Rule 19.5, Interpretation and Policy .05, 86382-86386 [2024-25147]

Download as PDF 86382 Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices CFR 3041.310; Public Representative: Arif Hafiz; Comments Due: October 31, 2024. 6. Docket No(s).: MC2025–147 and K2025–145; Filing Title: USPS Request to Add Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 525 to the Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: October 23, 2024; Filing Authority: 39 U.S.C. 3642, 39 CFR 3035.105, and 39 CFR 3041.310; Public Representative: Maxine Bradley; Comments Due: October 31, 2024. 7. Docket No(s).: MC2025–148 and K2025–146; Filing Title: USPS Request to Add Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 526 to the Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: October 23, 2024; Filing Authority: 39 U.S.C. 3642, 39 CFR 3035.105, and 39 CFR 3041.310; Public Representative: Maxine Bradley; Comments Due: October 31, 2024. 8. Docket No(s).: MC2025–149 and K2025–147; Filing Title: USPS Request to Add Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 527 to the Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: October 23, 2024; Filing Authority: 39 U.S.C. 3642, 39 CFR 3035.105, and 39 CFR 3041.310; Public Representative: Jennaca D. Upperman; Comments Due: October 31, 2024. 9. Docket No(s).: MC2025–150 and K2025–148; Filing Title: USPS Request to Add Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 528 to the Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: October 23, 2024; Filing Authority: 39 U.S.C. 3642, 39 CFR 3035.105, and 39 CFR 3041.310; Public Representative: Anaswar Jayakumar; Comments Due: October 31, 2024. ddrumheller on DSK120RN23PROD with NOTICES1 III. Summary Proceeding(s) None. See Section II for public proceedings. This Notice will be published in the Federal Register. Jennie L. Jbara, Primary Certifying Official. [FR Doc. 2024–25151 Filed 10–29–24; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION [Docket No. C2024–13; Presiding Officer’s Ruling No. 3] [Release No. 34–101430; File No. SR– MEMX–2024–41] Complaint Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is providing notice that a prehearing videoconference is being rescheduled. This notice informs the public of the videoconference rescheduled date and time. DATES: Live WebEx Videoconference: October 30, 2024, at 10:00 p.m., eastern daylight time, virtual. ADDRESSES: Submit notices of intervention electronically via the Commission’s Filing Online system at https://www.prc.gov. Persons interested in intervening who cannot submit their views electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background II. Ruling I. Background Due to the inability of one of the participants to attend, the prehearing videoconference scheduled for Thursday, October 24, 2024 must be rescheduled. The prehearing videoconference is hereby rescheduled for Wednesday, October 30, 2024, at 10:00 a.m.1 If either party seeks a continuance of the videoconference date or an extension of time to complete activities related to the videoconference, the parties must make a good faith effort to find a mutually agreeable new date before contacting the Presiding Officer to request a scheduling change. This ‘‘good faith effort’’ requires the requesting party to place at least one telephone call or send one email message to the other party. II. Ruling 1. The prehearing videoconference, scheduled for Thursday, October 24, 2024, is hereby rescheduled to Wednesday, October 30, 2024, at 10:00 a.m. 2. The Secretary shall arrange for publication of this ruling in the Federal Register. Jennie L. Jbara, Primary Certifying Official. BILLING CODE 7710–FW–P 17:59 Oct 29, 2024 Jkt 265001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Short Term Options Series Program in Rule 19.5, Interpretation and Policy .05 October 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 October 23, 2024, MEMX, LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder.4 The 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 with the Commission a proposed rule change to amend the Short Term Options Series Program in Rule 19.5, Interpretation and Policy .05. The text of the proposed rule change is provided in Exhibit 5. 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. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4. 2 17 [FR Doc. 2024–25149 Filed 10–29–24; 8:45 am] VerDate Sep<11>2014 SECURITIES AND EXCHANGE COMMISSION E:\FR\FM\30OCN1.SGM 30OCN1 Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change ddrumheller on DSK120RN23PROD with NOTICES1 1. Purpose The Exchange proposes to amend Rule 19.5, Interpretation and Policy .05 (Series of Options Contracts Open for Trading) to permit the expansion of Monday expirations in Exchange Traded Products (‘‘ETPs’’). 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’’).5 This is a competitive filing that is based on a proposal submitted from Nasdaq ISE, LLC (‘‘Nasdaq ISE’’) and recently approved by the Commission.6 Currently, as set forth in in Exchange Rule 19.5, Interpretation and Policy .05, after an option class has been approved for listing and trading on the Exchange as a Short Term Option Series,7 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 5 Today, the Exchange permits the listing of two Wednesday expirations for options on GLD, SLV, and TLT. See Securities Exchange Act Release No. 99211 (December 20, 2023), 88 FR 89481 (December 27, 2023) (SR–MEMX–2023–35). 6 See Securities Exchange Act Release No. 100837 (August 27, 2024) 89 FR 71770 (September 3, 2024) (Order approving SR–ISE–2024–21). 7 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 16.1. VerDate Sep<11>2014 17:59 Oct 29, 2024 Jkt 265001 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 Exchange Rule 19.5, Interpretation and Policy .05(h) 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’’).8 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. 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 Exchange Rule 19.5, Interpretation and Policy .05(h) 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 Exchange Rule 19.5, Interpretation and Policy .05(h) 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 8 As set forth in Table 1 in Rule 19.5, Interpretation and Policy .05(h), the Exchange currently only permits Wednesday expirations for USO, UNG, GLD, SLV and TLT. PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 86383 Expirations’’) (collectively, ‘‘Monday ETP Expirations’’).9 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 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.10 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 $150.11 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.12 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.13 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.14 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 9 Today, GLV, SLV and TLT may trade on Wednesdays. See supra note 5. They may also trade on Fridays, as is the case for all options series in the Short Term Option Series Program. 10 See Rule 19.5, Interpretation and Policy .05(e). 11 Id. 12 See supra note 7. 13 See Rule 19.5, Interpretation and Policy .05(a). 14 Id. E:\FR\FM\30OCN1.SGM 30OCN1 ddrumheller on DSK120RN23PROD with NOTICES1 86384 Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices 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.15 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. 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.16 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.17 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 Rule 19.5, Interpretation and Policy .05(b). 16 See Rule 19.5, Interpretation and Policy .05. 17 See supra note 5. support and properly monitor trading in the proposed Monday ETP Expirations. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the ‘‘Act’’),18 in general, and Section 6(b)(5) of the Act,19 in particular, 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 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. 15 See VerDate Sep<11>2014 17:59 Oct 29, 2024 Jkt 265001 18 15 19 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(5). Frm 00075 Fmt 4703 Sfmt 4703 The addition of Monday ETP Expirations would remove impediments to and perfect the mechanism of a free and open market by encouraging Market Makers to continue to deploy capital more efficiently and improve displayed market quality.20 The Exchange believes that the proposal will allow 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. 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.21 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 Rule 19.5, Interpretation and Policy .05 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. 20 Today, Market Makers are required to quote a specified time in their assigned options series. See Exchange Rule 22.5. 21 See Rule 19.5, Interpretation and Policy .05. E:\FR\FM\30OCN1.SGM 30OCN1 Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices ddrumheller on DSK120RN23PROD with NOTICES1 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 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 a filing submitted by Nasdaq ISE that was recently approved by the Commission.22 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 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 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 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 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 Exchange has filed the proposed rule change pursuant to Section 22 See supra note 6. VerDate Sep<11>2014 17:59 Oct 29, 2024 Jkt 265001 19(b)(3)(A)(iii) of the Act 23 and Rule 19b–4(f)(6) thereunder.24 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 25 and subparagraph (f)(6) of Rule 19b–4 thereunder.26 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 27 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6)(iii) 28 permits the Commission to 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 to permit the Exchange to implement the proposal at the same time as its competitors. The Exchange states that its proposal is substantively identical in all material respects to a proposal submitted by Nasdaq ISE that was recently approved by the Commission.29 The Commission believes that the proposed rule change presents no novel issues and that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.30 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 23 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 25 15 U.S.C. 78s(b)(3)(A)(iii). 26 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. 27 17 CFR 240.19b–4(f)(6). 28 17 CFR 240.19b–4(f)(6)(iii). 29 See supra note 6 and accompanying text. 30 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). 24 17 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 86385 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 rule-comments@ sec.gov. Please include file number SR– MEMX–2024–41 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–MEMX–2024–41. 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–MEMX–2024–41 and should be submitted on or before November 20, 2024. E:\FR\FM\30OCN1.SGM 30OCN1 86386 Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.31 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–25147 Filed 10–29–24; 8:45 am] BILLING CODE 8011–01–P 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 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–101423; File No. SR–MRX– 2024–40] Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Allow Unlimited External Distribution of Derived Data From MRX Options Trade Outline October 23, 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 October 9, 2024, Nasdaq MRX, LLC (‘‘MRX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The 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 proposes to allow unlimited external distribution of Derived Data from MRX Options Trade Outline. The text of the proposed rule change is available on the Exchange’s website at https://listingcenter.nasdaq.com/ rulebook/mrx/rules, at the principal office of the Exchange, and at the Commission’s Public Reference Room. ddrumheller on DSK120RN23PROD with NOTICES1 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 31 17 CFR 200.30–3(a)(12), (59). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 17:59 Oct 29, 2024 Jkt 265001 The purpose of the proposed rule change is to allow unlimited external distribution of Derived Data from MRX Options Trade Outline for a monthly fee of $3,000.3 MRX Options Trade Outline MRX Options Trade Outline provides aggregate quantity and volume information for trades on the Exchange for all series 4 during a trading session.5 Information is provided on an End of Day, Intra-Day, and historical basis in the following categories: (i) total exchange volume for Intra-Day information and total exchange and industry volume for End of Day information for each reported series; (ii) open interest for the series; (iii) aggregate quantity of trades and aggregate trade volume effected to open a position,6 characterized by origin type (Priority Customers,7 Broker-Dealers,8 Market Makers,9 Firm Proprietary,10 and 3 This proposal was initially filed on September 27, 2024, as SR–MRX–2024–038. On October 9, 2024, that filing was withdrawn and replaced with the instant filing to provide further clarification. 4 Every options series trades as a distinct symbol; the terms ‘‘series’’ and ‘‘symbol’’ are therefore synonyms. 5 See Securities Exchange Act Release No. 100789 (August 21, 2024), 89 FR 68680 (August 27, 2024) (SR–MRX–2024–31). 6 This includes the aggregate number of ‘‘opening purchase transactions,’’ defined as an Exchange Transaction that will create or increase a long position in an options contract, see Options 1, Section 1(a)(27), and the aggregate number of ‘‘opening writing transactions,’’ defined as an Exchange Transaction that will create or increase a short position in an options contract. See Options 1, Section 1(a)(28). 7 The term ‘‘Priority Customer’’ means a person or entity that (i) is not a broker or dealer in securities, and (ii) does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). See Options 1 § 1(a)(36). 8 A ‘‘Broker-Dealer’’ order is an order submitted by a Member for a broker-dealer account that is not its own proprietary account. See Options 7 § 1(c). 9 The term ‘‘Market Makers’’ refers to ‘‘Competitive Market Makers’’ and ‘‘Primary Market Makers’’ collectively. See Options 1 § 1(a)(21). The term ‘‘Competitive Market Maker’’ means a Member that is approved to exercise trading privileges associated with CMM Rights. See Options 1 § 1(a)(12). The term ‘‘Primary Market Maker’’ means a Member that is approved to exercise trading privileges associated with PMM Rights. See Options 1 Section 1(a)(35). 10 A ‘‘Firm Proprietary’’ order is an order submitted by a Member for its own proprietary account. See Options 7 Section 1(c). PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 Professional Customers 11); and (iv) aggregate quantity of trades and aggregate trade volume effected to close a position,12 characterized by origin type (Priority Customers, BrokerDealers, Market Makers, Firm Proprietary, and Professional Customers).13 End of Day Information The MRX Trade Outline End of Day file provides opening buy, closing buy, opening sell and closing sell information, including option first trade price, option high trade price, option low trade price, and option last trade price. The End of Day file is updated during an overnight process with additional fields 14 and will be available the following morning, providing aggregate data for the entire trading session. Intra-Day Information Intra-Day information will be released in scheduled ‘‘snapshots’’ available every 10 minutes for all options series over the course of the trading day. These snapshots will be updated to reflect whatever activity occurred, or to indicate that no activity occurred.15 Historical Information Historical data will be available through ad hoc requests for information in both End of Day and Intra-Day formats for all option series traded for every calendar month after September 2017, based on specific request.16 11 A ‘‘Professional Customer’’ is a person or entity that is not a broker/dealer and is not a Priority Customer. See Options 7 Section 1(c). 12 This includes the aggregate number of ‘‘closing purchase transactions’’ in the affected series, defined as an Exchange Transaction that will reduce or eliminate a short position in an options contract, see Options 1, Section 1(a)(9), and the aggregate number of ‘‘closing writing transactions,’’ defined as an Exchange Transaction that will reduce or eliminate a long position in an options contract. See Options 1, Section 1(a)(10). 13 These are the same types of information available on PHOTO, and the other trade outline products offered by Nasdaq exchanges. 14 The additional fields are: First Trade Price, High Trade Price, Low Trade Price, Last Trade Price, Underlying Close, Moneyness, Total Exchange volume, Total Industry Volume for the Series, and Open Interest. 15 Subscribers will receive the first snapshot at 9:42 a.m. ET, representing data captured from 9:30 a.m. to 9:40 a.m., and the second calculation at 9:52 a.m., representing data from both the most recent snapshot and previous snapshots, and continuing over the course of the trading day. The final IntraDay snapshot will be distributed at 4:15 p.m. 16 Market participants generally use historical files for model testing and research, and the period of time required by a particular market participant will depend on its unique testing and research needs as well as whether it is using End of Day or Intra-Day information. Some customers, for example, may request years of data, while others only months, or even a single month. The same E:\FR\FM\30OCN1.SGM 30OCN1

Agencies

[Federal Register Volume 89, Number 210 (Wednesday, October 30, 2024)]
[Notices]
[Pages 86382-86386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25147]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101430; File No. SR-MEMX-2024-41]


Self-Regulatory Organizations; MEMX LLC; Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change To Amend the Short 
Term Options Series Program in Rule 19.5, Interpretation and Policy .05

October 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 October 23, 2024, MEMX, LLC (``Exchange'') filed with the Securities 
and Exchange Commission (``Commission'') a proposed rule change as 
described in Items I and II below, which Items have been prepared by 
the Exchange. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The 
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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 with the Commission a proposed rule change 
to amend the Short Term Options Series Program in Rule 19.5, 
Interpretation and Policy .05. The text of the proposed rule change is 
provided in Exhibit 5.

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.

[[Page 86383]]

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 Rule 19.5, Interpretation and Policy 
.05 (Series of Options Contracts Open for Trading) to permit the 
expansion of Monday expirations in Exchange Traded Products (``ETPs''). 
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'').\5\ This is a 
competitive filing that is based on a proposal submitted from Nasdaq 
ISE, LLC (``Nasdaq ISE'') and recently approved by the Commission.\6\
---------------------------------------------------------------------------

    \5\ Today, the Exchange permits the listing of two Wednesday 
expirations for options on GLD, SLV, and TLT. See Securities 
Exchange Act Release No. 99211 (December 20, 2023), 88 FR 89481 
(December 27, 2023) (SR-MEMX-2023-35).
    \6\ See Securities Exchange Act Release No. 100837 (August 27, 
2024) 89 FR 71770 (September 3, 2024) (Order approving SR-ISE-2024-
21).
---------------------------------------------------------------------------

    Currently, as set forth in in Exchange Rule 19.5, Interpretation 
and Policy .05, after an option class has been approved for listing and 
trading on the Exchange as a Short Term Option Series,\7\ 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.
---------------------------------------------------------------------------

    \7\ 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 16.1.
---------------------------------------------------------------------------

    Additionally, the Exchange may open for trading series of options 
on the symbols provided in Table 1 of Exchange Rule 19.5, 
Interpretation and Policy .05(h) 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'').\8\ 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.
---------------------------------------------------------------------------

    \8\ As set forth in Table 1 in Rule 19.5, Interpretation and 
Policy .05(h), the Exchange currently only permits Wednesday 
expirations for USO, UNG, GLD, SLV and TLT.
---------------------------------------------------------------------------

    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 Exchange 
Rule 19.5, Interpretation and Policy .05(h) 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 Exchange Rule 19.5, Interpretation and Policy 
.05(h) 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'').\9\ 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 expiration options series, 
Monthly Options Series, or Quarterly Options Series.
---------------------------------------------------------------------------

    \9\ Today, GLV, SLV and TLT may trade on Wednesdays. See supra 
note 5. 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.\10\ 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.\11\ 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.
---------------------------------------------------------------------------

    \10\ See Rule 19.5, Interpretation and Policy .05(e).
    \11\ 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.\12\
---------------------------------------------------------------------------

    \12\ See supra note 7.
---------------------------------------------------------------------------

    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.\13\ 
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.\14\ 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

[[Page 86384]]

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.
---------------------------------------------------------------------------

    \13\ See Rule 19.5, Interpretation and Policy .05(a).
    \14\ 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.\15\ 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.
---------------------------------------------------------------------------

    \15\ See Rule 19.5, Interpretation and Policy .05(b).
---------------------------------------------------------------------------

    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.\16\ 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.
---------------------------------------------------------------------------

    \16\ See Rule 19.5, Interpretation and Policy .05.
---------------------------------------------------------------------------

    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.\17\ 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.
---------------------------------------------------------------------------

    \17\ See supra note 5.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Securities Exchange Act of 1934 
(the ``Act''),\18\ in general, and Section 6(b)(5) of the Act,\19\ in 
particular, 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 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.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b).
    \19\ 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 to continue to deploy capital more 
efficiently and improve displayed market quality.\20\ The Exchange 
believes that the proposal will allow 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.
---------------------------------------------------------------------------

    \20\ Today, Market Makers are required to quote a specified time 
in their assigned options series. See Exchange Rule 22.5.
---------------------------------------------------------------------------

    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.\21\
---------------------------------------------------------------------------

    \21\ See Rule 19.5, Interpretation and Policy .05.
---------------------------------------------------------------------------

    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 Rule 19.5, Interpretation and 
Policy .05 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.

[[Page 86385]]

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 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 a filing submitted by Nasdaq ISE that was 
recently approved by the Commission.\22\
---------------------------------------------------------------------------

    \22\ See supra note 6.
---------------------------------------------------------------------------

    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 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 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 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

    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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \23\ and Rule 19b-4(f)(6) thereunder.\24\ 
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 \25\ and subparagraph (f)(6) of 
Rule 19b-4 thereunder.\26\
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \24\ 17 CFR 240.19b-4(f)(6).
    \25\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \26\ 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 pursuant to Rule 19b-4(f)(6) under the 
Act \27\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \28\ permits the 
Commission to 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 to 
permit the Exchange to implement the proposal at the same time as its 
competitors. The Exchange states that its proposal is substantively 
identical in all material respects to a proposal submitted by Nasdaq 
ISE that was recently approved by the Commission.\29\ The Commission 
believes that the proposed rule change presents no novel issues and 
that waiver of the 30-day operative delay is consistent with the 
protection of investors and the public interest. Accordingly, the 
Commission hereby waives the operative delay and designates the 
proposed rule change operative upon filing.\30\
---------------------------------------------------------------------------

    \27\ 17 CFR 240.19b-4(f)(6).
    \28\ 17 CFR 240.19b-4(f)(6)(iii).
    \29\ See supra note 6 and accompanying text.
    \30\ 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).
---------------------------------------------------------------------------

    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-MEMX-2024-41 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-MEMX-2024-41. 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-MEMX-2024-41 and should be 
submitted on or before November 20, 2024.


[[Page 86386]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\31\
---------------------------------------------------------------------------

    \31\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-25147 Filed 10-29-24; 8:45 am]
BILLING CODE 8011-01-P


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