Notice2023-20307
Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Plan for the Purpose of Developing and Implementing Procedures Designed To Facilitate the Listing and Trading of Standardized Options To Add MEMX LLC as a Plan Sponsor
Primary source
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Published
September 20, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 181 (Wednesday, September 20, 2023)</title>
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[Federal Register Volume 88, Number 181 (Wednesday, September 20, 2023)]
[Notices]
[Pages 64963-64964]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-20307]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98388; File No. 4-443]
Joint Industry Plan; Notice of Filing and Immediate Effectiveness
of Amendment to the Plan for the Purpose of Developing and Implementing
Procedures Designed To Facilitate the Listing and Trading of
Standardized Options To Add MEMX LLC as a Plan Sponsor
September 14, 2023.
Pursuant to Section 11A(a)(3) of the Securities Exchange Act of
1934 (``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given
that on August 29, 2023, MEMX LLC (``MEMX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') an amendment to
the Plan for the Purpose of Developing and Implementing Procedures
Designed to Facilitate the Listing and Trading of Standardized Options
(``OLPP'' or ``Plan'').\3\ The Commission approved the application of
MEMX to register as a national securities exchange on May 4, 2020.\4\
The Commission subsequently approved MEMX's proposal to adopt rules to
govern the trading of options on the Exchange for a new facility called
MEMX Options.\5\ One of the conditions of the Commission's approval of
MEMX Options was the requirement for MEMX to join the OLLP.\6\ The
amendment adds MEMX as a Plan Sponsor \7\ of the OLPP.\8\ The
Commission is publishing this notice to solicit comments on the
amendment from interested persons.
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\1\ 15 U.S.C. 78k-1(a)(3).
\2\ 17 CFR 242.608.
\3\ On July 6, 2001, the Commission approved the OLPP, which was
proposed by the American Stock Exchange LLC (``Amex'') (n/k/a NYSE
American, LLC (``NYSE American'')), Chicago Board Options Exchange,
Incorporated (``Cboe''), International Securities Exchange LLC
(``ISE'') (n/k/a Nasdaq ISE, LLC (``Nasdaq ISE'')), Options Clearing
Corporation (``OCC''), Philadelphia Stock Exchange, Inc. (``Phlx'')
(n/k/a Nasdaq Phlx LLC (Nasdaq Phlx)), and Pacific Exchange, Inc.
(``PCX'') (n/k/a NYSE Arca, Inc. (``NYSE Arca'')). See Securities
Exchange Act Release No. 44521, 66 FR 36809 (July 13, 2001). See
also Securities Exchange Act Release Nos. 49199 (February 5, 2004),
69 FR 7030 (February 12, 2004) (adding Boston Stock Exchange, Inc.
as a Sponsor to the OLPP); 57546 (March 21, 2008), 73 FR 16393
(March 27, 2008) (adding Nasdaq Stock Market, LLC (``Nasdaq'') as a
Sponsor to the OLPP); 61528 (February 17, 2010), 75 FR 8415
(February 24, 2010) (adding BATS Exchange, Inc. (``BATS'') (n/k/a
Cboe BZX Exchange, Inc. (``Cboe BZX'')) as a Sponsor to the OLPP);
63162 (October 22, 2010), 75 FR 66401 (October 28, 2010) (adding C2
Options Exchange Incorporated (``C2'') (n/k/a Cboe C2 Exchange, Inc.
(``Cboe C2'')) as a sponsor to the OLPP); 66952 (May 9, 2012), 77 FR
28641 (May 15, 2012) (adding BOX Options Exchange LLC (``BOX'') as a
Sponsor to the OLPP); 67327 (June 29, 2012), 77 FR 40125 (July 6,
2012) (adding Nasdaq OMX BX, Inc. (``BX'') (n/k/a Nasdaq BX, Inc.
(``Nasdaq BX'')) as a Sponsor to the OLPP); 70765 (October 28,
2013), 78 FR 65739 (November 1, 2013) (adding Topaz Exchange, LLC as
a Sponsor to the OLPP (``Topaz'') (n/k/a Nasdaq GEMX, LLC (``Nasdaq
GEMX''); 70764 (October 28, 2013), 78 FR 65733 (November 1, 2013)
(adding Miami International Securities Exchange, LLC (``MIAX'') as a
Sponsor to the OLPP); 76822 (January 1, 2016), 81 FR 1251 (January
11, 2016) (adding EDGX Exchange, Inc. (``EDGX'') (n/k/a Cboe EDGX
Exchange, Inc. (``Cboe EDGX'')) as a Sponsor to the OLPP); 77323
(March 8, 2016), 81 FR 13433 (March 14, 2016) (adding ISE Mercury,
LLC (``ISE Mercury'') (n/k/a Nasdaq MRX, LLC (``Nasdaq MRX'')) as a
Sponsor to the OLPP); 79897 (January 30, 2017), 82 FR 9263 (February
3, 2017) (adding MIAX PEARL, LLC (``MIAX PEARL'') as a Sponsor to
the OLPP) and 85228 (March 1, 2019), 84 FR 8355 (March 7, 2019)
(adding MIAX Emerald, LLC (``MIAX Emerald'') as a Sponsor to the
OLPP).
\4\ See Securities and Exchange Act Release No. 88806 (May 4,
2020), 85 FR 27451 (May 8, 2020) (File No. 10-237).
\5\ See Securities and Exchange Act Release No. 95445 (August 8,
2022), 87 FR 49894 (August 12, 2022) (File No. SR-MEMX-2022-10).
\6\ See id. at 49907.
\7\ A ``Plan Sponsor'' is an Eligible Exchange whose
participation in the OLPP has become effective pursuant to Section 7
of the OLPP.
\8\ See Letter from Anders Franzon, General Counsel, MEMX, to
Vanessa Countryman, Secretary, Commission, dated August 29, 2023
(``Amendment'').
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I. Description and Purpose of the Amendment
The OLPP establishes procedures designed to facilitate the listing
and trading of standardized options contracts on the options exchanges.
The amendment to the OLPP adds MEMX as a Sponsor. The other OLPP
Sponsors are BOX, Cboe, Cboe BZX, Cboe C2, Cboe EDGX, Nasdaq BX, MIAX,
MIAX Emerald, MIAX PEARL, Nasdaq, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX,
Nasdaq Phlx, NYSE American, NYSE Arca, and OCC. MEMX has submitted an
executed copy of the OLPP to the Commission in accordance with the
procedures set forth in the OLPP regarding new Plan Sponsors. Section 7
of the OLPP provides for the entry of new Plan Sponsors to the OLPP.
Specifically, Section 7 of the OLPP provides that an Eligible Exchange
\9\ may become a Plan Sponsor of the OLPP by: (i) executing a copy of
the OLPP, as then in effect; (ii) providing each then-current Plan
Sponsor with a copy of such executed OLPP; and (iii) effecting an
amendment to the OLPP, as specified in Section 7(ii) of the OLPP.\10\
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\9\ The OLPP defines an ``Eligible Exchange'' as a national
securities exchange registered with the Commission pursuant to
Section 6(a) of the Act, 15 U.S.C. 78f(a), that (1) has effective
rules for the trading of options contracts issued and cleared by the
OCC approved in accordance with the provisions of the Act and the
rules and regulations thereunder and (2) is a party to the Plan for
Reporting Consolidated Options Last Sale Reports and Quotation
Information (the ``OPRA Plan''). MEMX has represented that it has
met both the requirements for being considered an Eligible Exchange.
See Amendment, supra note 8 (Section 7(i) of the OLPP).
\10\ MEMX has represented that it has executed a copy of the
current Plan, amended to include MEMX as a Plan Sponsor in Section 9
of the Plan, and has provided each current Plan Sponsor with a copy
of the executed and amended Plan. See Amendment, supra note 8.
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Section 7(ii) of the OLPP sets forth the process by which an
Eligible Exchange may effect an amendment to the OLPP to become a Plan
Sponsor. Specifically, an Eligible Exchange must: (a) execute a copy of
the OLPP as then in effect with the only change being the addition of
the new Plan Sponsor's name in Section 9 of the OLPP; \11\ and (b)
submit the executed OLPP to the Commission. The OLPP then provides that
such an amendment will be effective when the amendment is approved by
the Commission or otherwise becomes effective pursuant to Section 11A
of the Act and Rule 608 thereunder.
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\11\ The list of Plan Sponsors is set forth in Section 9 of the
OLPP.
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II. Effectiveness of the OLPP Amendment
The foregoing OLPP amendment has become effective pursuant to Rule
608(b)(3)(iii) \12\ because it has been designated by the sponsors as
involving solely technical or ministerial matters. At any time within
sixty days of the filing of the amendment, the Commission may summarily
abrogate the amendment and require that it be refiled pursuant to
paragraph (a)(1) of Rule 608,\13\ if it appears to the Commission that
such action is necessary or appropriate in the public interest, for the
protection of investors, or the maintenance of fair and orderly
markets, to remove impediments to, and perfect the mechanisms of, a
national market system or otherwise in furtherance of the purposes of
the Act.
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\12\ 17 CFR 242.608(b)(3)(iii).
\13\ 17 CFR 242.608(a)(1).
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III. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the amendment is
consistent with the Act and the rules thereunder. Comments may be
submitted by any of the following methods:
[[Page 64964]]
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5b292e373e76383436363e352f281b283e38753c342d"><span class="__cf_email__" data-cfemail="d0a2a5bcb5fdb3bfbdbdb5bea4a390a3b5b3feb7bfa6">[email protected]</span></a>. Please include
file number 4-443 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 4-443. 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the plan that are filed with the Commission,
and all written communications relating to the plan 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 4-
443 and should be submitted on or before October 11, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(85).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-20307 Filed 9-19-23; 8:45 am]
BILLING CODE 8011-01-P
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