Notice2024-01388
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Permit Cboe To List and Trade Options on ETPs That Hold Bitcoin
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 25, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 17 (Thursday, January 25, 2024)</title>
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[Federal Register Volume 89, Number 17 (Thursday, January 25, 2024)]
[Notices]
[Pages 5075-5079]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01388]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99395; File No. SR-CBOE-2024-005]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To Permit Cboe To List and Trade
Options on ETPs That Hold Bitcoin
January 19, 2024.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 5, 2024, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(``Commission'') the 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.
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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
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 4.3. The text of the proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (<a href="http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx">http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx</a>), at the Exchange's Office of the
Secretary, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 4.3 regarding the criteria for
underlying securities. Specifically, the Exchange proposes to amend
Rule 4.3, Interpretation and Policy .06(a)(4) to allow the Exchange to
list and trade options on Units \3\ that represent interests in a trust
that holds bitcoin (``Bitcoin ETPs''), designating them as ``Units''
deemed appropriate for options trading on the Exchange. Current Rule
4.3, Interpretation and Policy .06 provides that, subject to certain
other criteria set forth in that Rule, securities deemed appropriate
for options trading include Units that represent certain types of
interests,\4\ including interests in
[[Page 5076]]
certain specific trusts that hold financial instruments, money market
instruments, or precious metals (which are deemed commodities).
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\3\ Rule 1.1 defines a ``Unit'' (which may also be referred to
as an exchange-traded fund (``ETF'')) as a share or other security
traded on a national securities exchange and defined as an NMS stock
as set forth in Rule 4.3.
\4\ See Rule 4.3, Interpretation and Policy .06(a), which
permits options trading on Units that represent (1) interests in
registered investment companies (or series thereof) organized as
open-end management investment companies, unit investment trusts or
similar entities that hold portfolios of securities and/or financial
instruments including, but not limited to, stock index futures
contracts, options on futures, options on securities and indexes,
equity caps, collars and floors, swap agreements, forward contracts,
repurchase agreements and reverse purchase agreements (the
``Financial Instruments''), and money market instruments, including,
but no limited to, U.S. government securities and repurchase
agreements (the ``Money Market Instruments'') comprising or
otherwise based on or representing investments in indexes or
portfolios of securities and/or Financial Instruments and Money
Market Instruments (or that hold securities in one or more other
registered investment companies that themselves hold such portfolios
of securities and/or Financial Instruments and Money Market
Instruments); (2) interests in a trust or similar entity that holds
a specified non-U.S. currency deposited with the trust or similar
entity when aggregated in some specified minimum number may be
surrendered to the trust by the beneficial owner to receive the
specified non-U.S. currency and pays the beneficial owner interest
and other distributions on deposited non-U.S. currency, if any,
declared and paid by the trust (``Currency Trust Shares''); (3)
commodity pool interests principally engaged, directly or
indirectly, in holding and/or managing portfolios or baskets of
securities, commodity futures contracts, options on commodity
futures contracts, swaps, forward contracts and/or options on
physical commodities and/or non-U.S. currency (``Commodity Pool
Units''); (4) interests in the SPDR Gold Trust, the iShares COMEX
Gold Trust, the iShares Silver Trust, the Aberdeen Standard Physical
Silver Trust, the Aberdeen Standard Physical Gold Trust, the
Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard
Physical Platinum Trust, the Sprott Physical Gold Trust or the
Goldman Sachs Physical Gold ETF; or (5) an interest in a registered
investment company (``Investment Company'') organized as an open-end
management investment company or similar entity, that invests in a
portfolio of securities selected by the Investment Company's
investment adviser consistent with the Investment Company's
investment objectives and policies, which is issued in a specified
aggregate minimum number in return for a deposit of a specified
portfolio of securities and/or a cash amount with a value equal to
the next determined net asset value (``NAV''), and when aggregated
in the same specified minimum number, may be redeemed at a holder's
request, which holder will be paid a specified portfolio of
securities and/or cash with a value equal to the next determined NAV
(``Managed Fund Share'').
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Bitcoin ETPs are bitcoin-backed commodity ETPs structured as
trusts.\5\ Similar to any Unit currently deemed appropriate for options
trading under Rule 4.3, Interpretation and Policy .06, the investment
objective of a Bitcoin ETP trust is for its shares to reflect the
performance of bitcoin (less the expenses of the trust's operations),
offering investors an opportunity to gain exposure to bitcoin without
the complexities of bitcoin delivery. As is the case for Units
currently deemed appropriate for options trading, a Bitcoin ETP's
shares represent units of fractional undivided beneficial interest in
the trust, the assets of which consist principally of bitcoin and are
designed to track bitcoin or the performance of the price of bitcoin
and offer access to the bitcoin market.\6\ Bitcoin ETPs provide
investors with cost-efficient alternatives that allow a level of
participation in the bitcoin market through the securities market. The
primary substantive difference between Bitcoin ETPs and Units currently
deemed appropriate for options trading are that Units may hold
securities, certain financial instruments, and specified precious
metals (which are commodities), while Bitcoin ETPs hold bitcoin (which
is also deemed a commodity).
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\5\ The Exchange notes several filings to list and trade Units
that hold bitcoin as NMS stocks (and registration statements for
those Units) are currently pending with the Securities and Exchange
Commission (the ``Commission''). Pursuant to the Rules, the Exchange
would only have authority to list and trade Units that are trading
as NMS stocks.
\6\ The trust may include minimal cash.
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The Exchange's initial listing standards for ETFs on which options
may be listed and traded on the Exchange will apply to the Bitcoin
ETPs. The Exchange expects Bitcoin ETPs to satisfy the initial listing
standards as set forth in Rule 4.3(a) and Rule 4.3, Interpretation and
Policy .06(b). Pursuant to Rule 4.3(a), a security (which includes a
Unit) on which options may be listed and traded on the Exchange must be
duly registered (with the Commission) and be an NMS stock (as defined
in Rule 600 of Regulation NMS under the Securities Exchange Act of
1934, as amended (the ``Act'')), and be characterized by a substantial
number of outstanding shares that are widely held and actively
traded.\7\ Rule 4.3, Interpretation and Policy .06 requires that Units
must either (1) meet the criteria and standards set forth in Rule 4.3,
Interpretation and Policy .01(a),\8\ or (2) be available for creation
or redemption each business day from or through the issuer in cash or
in kind at a price related to net asset value, and the issuer must be
obligated to issue Units in a specified aggregate number even if some
or all of the investment assets required to be deposited have not been
received by the issuer, subject to the condition that the person
obligated to deposit the investments has undertaken to deliver the
investment assets as soon as possible and such undertaking is secured
by the delivery and maintenance of collateral consisting of cash or
cash equivalents satisfactory to the issuer, as provided in the
respective prospectus. The Exchange expects that Bitcoin ETPs would
satisfy Rule 4.3, Interpretation and Policy .06(b)(2).\9\
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\7\ As noted above, there are currently no Bitcoin ETPs trading
as NMS stocks on a national securities exchange; however,
registration statements and filings to list and trade several
Bitcoin ETPs are currently pending with the Commission. The Exchange
represents it would not list options on a Bitcoin ETP unless it
satisfied the criteria in Rule 4.3(a) the proposed listing criteria,
and any other applicable listing criteria.
\8\ Rule 4.3, Interpretation and Policy .01 provides for
guidelines to be by the Exchange when evaluating potential
underlying securities for Exchange option transactions.
\9\ See, e.g., Form S-1 Registration Statement filed on November
29, 2023 (Registration No. 333-275781) (pending registration
statement for shares of the Pando Asset Spot Bitcoin Trust); and
Form S-1 Registration Statement filed on September 12, 2023
(Registration No. 333-274474) (pending registration statement for
shares of the Franklin Bitcoin ETF).
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Options on Bitcoin ETPs will also be subject to the Exchange's
continued listing standards set forth in Rule 4.4, Interpretation and
Policy .06 for Units deemed appropriate for options trading pursuant to
Rule 4.3, Interpretation and Policy .06. Specifically, Rule 4.4,
Interpretation and Policy .06 provides that Units that were initially
approved for options trading pursuant to Rule 4.3, Interpretation and
Policy .06 shall be deemed not to meet the requirements for continued
approval, and the Exchange shall not open for trading any additional
series of option contracts of the class covering that [sic] such Units,
if the Units cease to be an NMS stock or the Units are halted from
trading in their primary market. Additionally, options on Units may be
subject to the suspension of opening transactions in any of the
following circumstances: (1) in the case of options covering Units
approved for trading under Rule 4.3, Interpretation and Policy
.06(b)(1), in accordance with the terms of paragraphs (a), (b), and (c)
of Rule 4.4, Interpretation and Policy .01; (2) in the case of options
covering Units approved for trading under Rule 4.3 Interpretation and
Policy .06(b)(2), following the initial twelve-month period beginning
upon the commencement of trading in the Units on a national securities
exchange and are defined as an NMS stock [sic], there are fewer than 50
record and/or beneficial holders of such Units for 30 or more
consecutive trading days; (3) the value of the index or portfolio of
securities, non-U.S. currency, or portfolio of commodities including
commodity futures contracts, options on commodity futures contracts,
swaps, forward contracts and/or options on physical commodities and/or
financial instruments and money market instruments on which the Units
are based is no longer calculated or available; or (4) such other event
shall occur or condition exist that in the opinion of the Exchange
makes further dealing in such options on the Exchange inadvisable.
Options on a Bitcoin ETP will be physically settled contracts with
American-style exercise.\10\ Consistent with current Rule 4.5, which
governs the opening of options series on a specific underlying security
(including Units), the Exchange will open at least one expiration month
for options on each Bitcoin ETP \11\ at the
[[Page 5077]]
commencement of trading on the Exchange and may also list series of
options on a Bitcoin ETP for trading on a weekly,\12\ monthly,\13\ or
quarterly \14\ basis. The Exchange may also list long-term equity
option series (``LEAPS'') that expire from 12 to 180 months from the
time they are listed.\15\
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\10\ See Rule 4.2, which provides that the rights and
obligations of holders and writers are set forth in the Rules of the
Options Clearing Corporation (``OCC''); and Equity Options Product
Specifications January 3, 2024), available at Equity Options
Specifications (<a href="http://cboe.com">cboe.com</a>); see also OCC Rules, Chapters VIII (which
governs exercise and assignment) and Chapter IX (which governs the
discharge of delivery and payment obligations arising out of the
exercise of physically settled stock option contracts).
\11\ See Rule 4.5(b). The monthly expirations are subject to
certain listing criteria for underlying securities described within
Rule 4.3. Monthly listings expire the third Friday of the month. The
term ``expiration date'' (unless separately defined elsewhere in the
OCC By-Laws), when used in respect of an option contract (subject to
certain exceptions), means the third Friday of the expiration month
of such option contract, or if such Friday is a day on which the
exchange on which such option is listed is not open for business,
the preceding day on which such exchange is open for business. See
OCC By-Laws Article I, Section 1. Pursuant to Rule 4.5(c),
additional series of options of the same class may be opened for
trading on the Exchange when the Exchange deems it necessary to
maintain an orderly market, to meet customer demand or when the
market price of the underlying stock moves more than five strike
prices from the initial exercise price or prices. New series of
options on an individual stock may be added until the beginning of
the month in which the options contract will expire. Due to unusual
market conditions, the Exchange, in its discretion, may add a new
series of options on an individual stock until the close of trading
on the business day prior to expiration.
\12\ See Rule 4.5(d).
\13\ See Rule 4.5(g).
\14\ See Rule 4.5(e).
\15\ See Rule 4.5(f).
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Pursuant to Rule 4.5, Interpretation and Policy .07, which governs
strike prices of series of options on Units, the interval of strikes
prices for series of options Bitcoin ETPs will be $1 or greater when
the strike price is $200 or less and $5 or greater where the strike
price is over $200.\16\ Additionally, the Exchange may list series of
options pursuant to the $1 Strike Price Interval Program,\17\ the $0.50
Strike Program,\18\ the $2.50 Strike Price Program,\19\ and the $5
Strike Program.\20\ Pursuant to Rule 5.4, where the price of a series
of a Bitcoin ETP option is less than $3.00, the minimum increment will
be $0.05, and where the price is $3.00 or higher, the minimum increment
will be $0.10.\21\ Any and all new series of Bitcoin ETP options that
the Exchange lists will be consistent and comply with the expirations,
strike prices, and minimum increments set forth in Rules 4.5 and 5.4,
as applicable.
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\16\ The Exchange notes that for options listed pursuant to the
Short Term Option Series Program, the Monthly Options Series
Program, and the Quarterly Options Series Program, Rules 4.5(d),
(e), and (g) specifically sets forth intervals between strike prices
on Quarterly Options Series, Short Term Option Series, and Monthly
Options Series, respectively.
\17\ See Rule 4.5, Interpretation and Policy .01(a).
\18\ See Rule 4.5, Interpretation and Policy .01(b).
\19\ See Rule 4.5, Interpretation and Policy .04.
\20\ See Rule 4.5, Interpretation and Policy .01(f).
\21\ If options on a Bitcoin ETP are eligible to participate in
the Penny Interval Program, the minimum increment will be $0.01 for
series with a price below $3.00 and $0.05 for series with a price at
or above $3.00. See 5.4(d) (which describes the requirements for the
Penny Interval Program).
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Bitcoin ETP options will trade in the same manner as any other Unit
options on the Exchange. The Exchange Rules that currently apply to the
listing and trading of all Unit options on the Exchange, including, for
example, Rules that govern listing criteria, expiration and exercise
prices, minimum increments, position and exercise limits, margin
requirements, customer accounts and trading halt procedures will apply
to the listing and trading of Bitcoin ETPs on the Exchange in the same
manner as they apply to other options on all other Units that are
listed and traded on the Exchange, including the precious-metal backed
commodity Units already deemed appropriate for options trading on the
Exchange pursuant to current Rule 4.3, Interpretation and Policy
.06(a)(4).
Position and exercise limits for options on Units, including
options on Bitcoin ETPs, are determined pursuant to Rules 8.30 and
8.42, respectively. Position and exercise limits for Unit options vary
according to the number of outstanding shares and the trading volumes
of the underlying Unit over the past six months, where the largest in
capitalization and the most frequently traded Units have an option
position and exercise limit of 250,000 contracts (with adjustments for
splits, re-capitalizations, etc.) on the same side of the market; and
smaller capitalization Units have position and exercise limits of
200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for
splits, re-capitalizations, etc.) on the same side of the market.\22\
The Exchange further notes that Rule 10.3, which governs margin
requirements applicable to the trading of all options on the Exchange,
including options on Units, will also apply to the trading of Bitcoin
ETP options.
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\22\ As Bitcoin ETPs do not currently trade, options on Bitcoin
ETPs would be subject to the 25,000 option contract limit.
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The Exchange represents that the same surveillance procedures
applicable to all other options on Units currently listed and traded on
the Exchange will apply to options on Bitcoin ETPs, and that it has the
necessary systems capacity to support the new option series. The
Exchange believes that its existing surveillance and reporting
safeguards are designed to deter and detect possible manipulative
behavior which might potentially arise from listing and trading Unit
options, including precious metal-commodity backed Unit options, as
proposed [sic]. Also, the Exchange may obtain information from CME
Group Inc.'s designated contract markets that are members of the
Intermarket Surveillance Group related to any financial instrument that
is based, in whole or in part, upon an interest in or performance of
bitcoin, as applicable.
The Exchange has also analyzed its capacity and represents that it
believes the Exchange and OPRA have the necessary systems capacity to
handle the additional traffic associated with the listing of new series
that may result from the introduction of options on Bitcoin ETPs up to
the number of expirations currently permissible under the Rules.
Because the proposal is limited to Units on a single commodity, the
Exchange believes any additional traffic that may be generated from the
introduction of Bitcoin ETP options will be manageable.
The Exchange believes that offering options on Bitcoin ETPs will
benefit investors by providing them with an additional, relatively
lower cost investing tool to gain exposure to the price of bitcoin and
hedging [sic] vehicle to meet their investment needs in connection with
bitcoin-related products and positions. The Exchange expects investors
will transact in options on Bitcoin ETPs in the unregulated over-the-
counter (``OTC'') options market (if the Commission approves Bitcoin
ETPs for exchange-trading),\23\ but may prefer to trade such options in
a listed environment to receive the benefits of trading listing
options, including (1) enhanced efficiency in initiating and closing
out position; (2) increased market transparency; and (3) heightened
contra-party creditworthiness due to the role of OCC as issuer and
guarantor of all listed options. The Exchange believes that listing
Bitcoin ETP options may cause investors to bring this liquidity to the
Exchange, would increase market transparency and enhance the process of
price discovery conducted on the Exchange through increased order flow.
The Units that hold financial instruments, money market instruments, or
precious metal commodities on which the Exchange may already list and
trade options are trusts structured in substantially the same manner as
Bitcoin ETPs and essentially offer the same objectives and benefits to
investors, just with respect to different assets. The Exchange notes
that it has not identified any issues with the continued listing and
trading of any Unit options, including Units that hold commodities
(i.e., precious metals) that it currently lists and trades on the
Exchange.
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\23\ The Exchange understands from customers that investors have
historically transacted in options on Units in the OTC options
market if such options were not available for trading in a listed
environment.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of
[[Page 5078]]
Section 6(b) of the Act.\24\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \25\
requirements that the rules of an exchange be 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 regulating, clearing, settling, processing
information with respect to, and 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. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \26\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\24\ 15 U.S.C. 78f(b).
\25\ 15 U.S.C. 78f(b)(5).
\26\ Id.
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In particular, the Exchange believes that the proposal to list and
trade options on Bitcoin ETPs will remove impediments to and perfect
the mechanism of a free and open market and a national market system
and, in general, protect investors because offering options on Bitcoin
ETPs will provide investors with an opportunity to realize the benefits
of utilizing options on a bitcoin-based ETP, including cost
efficiencies and increased hedging strategies. The Exchange believes
that offering Bitcoin ETP options will benefit investors by providing
them with a relatively lower-cost risk management tool, which will
allow them to manage their positions and associated risk in their
portfolios more easily in connection with exposure to the price of
bitcoin and with bitcoin-related products and positions. Additionally,
the Exchange's offering of Bitcoin ETP options will provide investors
with the ability to transact in such options in a listed market
environment as opposed to in the unregulated OTC options market, which
would increase market transparency and enhance the process of price
discovery conducted on the Exchange through increased order flow to the
benefit of all investors. The Exchange also notes that it already lists
options on other commodity-based Units,\27\ which, as described above,
are trusts structured in substantially the same manner as Bitcoin ETPs
and essentially offer the same objectives and benefits to investors,
just with respect to a different commodity (i.e., bitcoin rather than
precious metals) and for which the Exchange has not identified any
issues with the continued listing and trading of commodity-backed Unit
options it currently lists for trading.
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\27\ See Rule 4.3, Interpretation and Policy .06(a)(4).
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The Exchange also believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
a national market system, because it is consistent with current
Exchange Rules, previously filed with the Commission. Options on
Bitcoin ETPs must satisfy the initial listing standards and continued
listing standards currently in the Exchange Rules, applicable to
options on all Units, including Units that hold other commodities
already deemed appropriate for options trading on the Exchange. Bitcoin
ETP options will trade in the same manner as any other Unit options--
the same Exchange Rules that currently govern the listing and trading
of all Unit options, including permissible expirations, strike prices
and minimum increments, and applicable position and exercise limits and
margin requirements, will govern the listing and trading of options on
Bitcoin ETPs in the same manner.
The Exchange represents that it has the necessary systems capacity
to support the new Unit option series. The Exchange believes that its
existing surveillance and reporting safeguards are designed to deter
and detect possible manipulative behavior which might arise from
listing and trading Unit options, including Bitcoin ETP options.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act as Bitcoin ETPs would need to
satisfy the initial listing standards set forth in the Exchange Rules
in the same manner as any other Unit before the Exchange could list
options on them. Additionally, Bitcoin ETP options will be equally
available to all market participants who wish to trade such options.
The Exchange Rules currently applicable to the listing and trading of
options on Units on the Exchange will apply in the same manner to the
listing and trading of all options on Bitcoin ETPs. Also, and as stated
above, the Exchange already lists options on other commodity-based
Units.\28\
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\28\ See Rule 4.3, Interpretation and Policy .06(a)(4).
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The Exchange does not believe that the proposal to list and trade
options on Bitcoin ETPs will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. To the extent that the advent of Bitcoin ETP
options trading on the Exchange may make the Exchange a more attractive
marketplace to market participants at other exchanges, such market
participants are free to elect to become market participants on the
Exchange. Additionally, other options exchanges are free to amend their
listing rules, as applicable, to permit them to list and trade options
on Bitcoin ETPs. Additionally, the Exchange notes that listing and
trading Bitcoin ETP options on the Exchange will subject such options
to transparent exchange-based rules as well as price discovery and
liquidity, as opposed to alternatively trading such options in the OTC
market. The Exchange believes that the proposed rule change may relieve
any burden on, or otherwise promote, competition as it is designed to
increase competition for order flow on the Exchange in a manner that is
beneficial to investors by providing them with a lower-cost option to
hedge their investment portfolios. The Exchange notes that it operates
in a highly competitive market in which market participants can readily
direct order flow to competing venues that offer similar products.
Ultimately, the Exchange believes that offering Bitcoin ETP options for
trading on the Exchange will promote competition by providing investors
with an additional, relatively low-cost means to hedge their portfolios
and meet their investment needs in connection with bitcoin prices and
bitcoin-related products and positions on a listed options exchange.
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 written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period
[[Page 5079]]
to be appropriate and publishes its reasons for so finding or (ii) as
to which the Exchange consents, the Commission will:
A. by order approve or disapprove such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be 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="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#8efcfbe2eba3ede1e3e3ebe0fafdcefdebeda0e9e1f8"><span class="__cf_email__" data-cfemail="bccec9d0d991dfd3d1d1d9d2c8cffccfd9df92dbd3ca">[email protected]</span></a>. Please include
file number SR-CBOE-2024-005 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-CBOE-2024-005. 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 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-CBOE-2024-005 and should be
submitted on or before February 15, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
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\29\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01388 Filed 1-24-24; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on January 25, 2024.
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