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]
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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
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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]
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SECURITIES AND EXCHANGE
COMMISSION
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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.
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17:59 Oct 29, 2024
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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.
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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.
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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
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18 15
19 15
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U.S.C. 78f(b)(5).
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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.
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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.
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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
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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
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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]
=======================================================================
-----------------------------------------------------------------------
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.
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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\
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\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).
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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-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\
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\31\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-25147 Filed 10-29-24; 8:45 am]
BILLING CODE 8011-01-P