Notice2022-26443
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Definition of Short Term Option Series
Primary source
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Published
December 6, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 233 (Tuesday, December 6, 2022)</title>
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[Federal Register Volume 87, Number 233 (Tuesday, December 6, 2022)]
[Notices]
[Pages 74683-74685]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-26443]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96413; File No. SR-GEMX-2022-11]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Definition of Short Term Option Series
November 30, 2022.
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 November 18, 2022, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Options 1, General Provisions. The
Exchange also proposes amendments within General 2, Organization and
Administration.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/gemx/rules">https://listingcenter.nasdaq.com/rulebook/gemx/rules</a>, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the description of the term ``Short
Term Option Series'' within Options 1, Section 1, Definitions, to
conform the term to Nasdaq ISE, LLC's (``ISE'') term of Short Term
Option Series which was recently amended.\3\ The Exchange also proposes
certain non-substantive amendments. Each change is described below.
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\3\ See Securities Exchange Act Release No. 96281 (November 9,
2022), 87 FR 68769 (November 16, 2022) (SR-ISE-2022-18) (Order
Granting Approval of a Proposed Rule Change to Amend the Short Term
Option Series Program).
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Short Term Option Series
Options 1, Section 1(a)(48) describes the term ``Short Term Option
Series'' as follows:
The term ``Short Term Option Series'' means 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, Wednesday or Friday of the following
business week that is a business day, 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.
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.
ISE's Options 4 rules were recently amended to expand the Short
Term Option Series program to permit the listing and trading of options
series with Tuesday and Thursday expirations for options on SPY and QQQ
listed pursuant to the Short Term Option Series Program.\4\ In
conjunction with that change, ISE amended its definition of Short Term
Option Series, within Options 1, Section 1(a)(49), to accommodate the
listing of options series that expire on Tuesdays and Thursdays.\5\
Specifically, the Exchange added Tuesday and Thursday to the permitted
expiration days, which currently include Monday, Wednesday, and Friday,
that it may open for trading.
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\4\ See note 3 above. GEMX's Options 4 Rules are incorporated by
reference to ISE's Options 4 Rules.
\5\ See note 3 above.
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At this time, the Exchange proposes to amend the term ``Short Term
Option Series'' at Options 1, Section 1(a)(48) to provide,
The term ``Short Term Option Series'' means 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 following business week that is a business day, 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. 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.
Today, GEMX's listing rules permit the listing and trading of
options series with Tuesday and Thursday expirations for options on SPY
and QQQ listed pursuant to the Short Term Option Series Program.\6\
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\6\ GEMX's Options 4 Rules are incorporated by reference to
ISE's Options 4 Rules and therefore the approval of ISE's Options 4
rules permits the listing and trading of options series with Tuesday
and Thursday expirations for options on SPY and QQQ on GEMX.
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[[Page 74684]]
Other Non-Substantive Amendments
The Exchange proposes to make other amendments to reserve certain
sections of the Rulebook. These sections contain content in other
Nasdaq affiliated rulebooks. To harmonize the section numbers across
the Nasdaq affiliated markets, the Exchange proposes to reserve General
2, Sections 23 and 24. These amendments are non-substantive.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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Short Term Option Series
The Exchange's proposal to amend the term ``Short Term Option
Series'' at Options 1, Section 1(a)(48) to reflect the recent change
\9\ to GEMX's listing rules to permit the listing and trading of
options series with Tuesday and Thursday expirations for options on SPY
and QQQ listed pursuant to the Short Term Option Series Program is
consistent with the Exchange Act. This proposal will align the
description of Short Term Option Series within Options 1, Section
1(a)(48) to the expirations permitted within the Short Term Option
Series Program within Supplementary .03(a) to Options 4, Section 5.
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\9\ See note 3 above.
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Other Non-Substantive Amendments
The Exchange's proposal to reserve certain sections of the
Rulebook, namely General 2, Sections 23 and 24, to harmonize section
numbers across the Nasdaq affiliated markets is non-substantive.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
Short Term Option Series
The Exchange's proposal to amend the term ``Short Term Option
Series'' at Options 1, Section 1(a)(48) to reflect the recent change
\10\ to GEMX's listing rules to permit the listing and trading of
options series with Tuesday and Thursday expirations for options on SPY
and QQQ listed pursuant to the Short Term Option Series Program does
not impose an undue burden on competition, rather this proposal will
align the description of Short Term Option Series within Options 1,
Section 1(a)(48) to the expirations permitted within the Short Term
Option Series Program within Supplementary .03(a) to Options 4, Section
5.
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\10\ See note 3 above.
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Other Non-Substantive Amendments
The Exchange's proposal to make other amendments to reserve certain
sections of the Rulebook, namely General 2, Sections 23 and 24, to
harmonize section numbers across the Nasdaq affiliated markets is non-
substantive.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
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 \13\ and subparagraph (f)(6) of
Rule 19b-4 thereunder.\14\ The Exchange has stated that the Options 4
listing rules were recently amended to expand the Short Term Option
Series program to permit the listing and trading of options series with
Tuesday and Thursday expirations for options on SPY and QQQ listed
pursuant to the Short Term Option Series Program,\15\ and that waiver
of the 30-day operative delay will allow the Exchange to conform the
definition of a Short Term Option Series to the Options 4 listing
rules. The Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest because the proposed rule change does not raise any new or
novel issues. Accordingly, the Commission hereby waives the operative
delay and designates the proposed rule change operative upon
filing.\16\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 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.
\15\ See supra note 4.
\16\ 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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#99ebecf5fcb4faf6f4f4fcf7edead9eafcfab7fef6ef"><span class="__cf_email__" data-cfemail="186a6d747d357b7775757d766c6b586b7d7b367f776e">[email protected]</span></a>. Please include
File Number SR-GEMX-2022-11 on the subject line.
Paper Comments
<bullet> 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-GEMX-2022-11. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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
[[Page 74685]]
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 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change. Persons submitting comments are cautioned that we do
not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
GEMX-2022-11, and should be submitted on or before December 27, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-26443 Filed 12-5-22; 8:45 am]
BILLING CODE 8011-01-P
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