Notice2024-01620
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of a Proposed Rule Change and Amendment No. 1 Thereto To List and Trade Options That Overlie a Reduced Value of the MSCI World Index, the Full Value of the MSCI ACWI Index, and a Reduced Value of the MSCI USA Index
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 29, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 19 (Monday, January 29, 2024)</title>
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[Federal Register Volume 89, Number 19 (Monday, January 29, 2024)]
[Notices]
[Pages 5589-5596]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01620]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99416; File No. SR-CBOE-2024-006]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of a Proposed Rule Change and Amendment No. 1 Thereto To List
and Trade Options That Overlie a Reduced Value of the MSCI World Index,
the Full Value of the MSCI ACWI Index, and a Reduced Value of the MSCI
USA Index
January 23, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 10, 2024, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. On
January 17, 2024, the Exchange filed Amendment No. 1 to the proposed
rule change.\3\ The Commission is publishing this notice to solicit
comments on the proposed rule change, as modified by Amendment No. 1,
from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the Exchange proposed to delete the
proposed rule change to add MSCI USA Index options to the list of
options in Rule 5.1(b)(2)(E) for which the last trading day will be
the business day prior to the expiration date of the specific
series. Therefore, under the proposal as modified by Amendment No.
1, the last trading day for these options would be the expiration
date of the specific series.
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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 list and trade options that overlie a reduced value of the MSCI
World Index, the full value of the MSCI ACWI Index, and a reduced value
of the MSCI USA Index. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to amend certain rules
to permit the Exchange to list and trade options that overlie a reduced
value of the MSCI World Index, the full value of the MSCI ACWI Index,
and a reduced value of the MSCI USA Index.\4\ Each of these indexes is
a free float-adjusted market capitalization index designed to measure
equity market performance throughout the world (MSCI World and ACWI
Indexes) or the United States (MSCI USA Index). MSCI World Index
options (``MXWLD options''), MSCI ACWI Index options (``MXACW
options''), and MSCI USA Index options (``MXUSA options'') would be
P.M.-, cash-settled contracts with European-style exercise.
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\4\ The proposed rule change amends Rule 4.13, Interpretation
and Policy .06 to provide that the current index value of the
reduced-value options on the MSCI World Index and the MSCI USA Index
will be 1/100th the value of the applicable underlying index
reported by the reporting authority.
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Index Design, Methodology, and Dissemination
The MSCI World, ACWI, and USA Indexes are calculated by MSCI Inc.
(``MSCI''), which is a provider of investment support tools.\5\ Each of
these indexes is calculated in U.S. dollars on a real-time basis from
the open of the first market on which the components are traded to the
closing of the last market on which the components are traded. The
methodology used to calculate each index is similar to the methodology
used to calculate the value of other benchmark market-capitalization
weighted indexes (including the MSCI EAFE and EM Indexes, on which the
Exchange may currently list options).\6\ Specifically, each index is
based on the MSCI Global Investable Market Indexes (``GIMI'')
Methodology.\7\ The level of each index reflects the free float-
adjusted market value of the component stocks relative to a particular
base date and is computed by dividing the total market value of the
companies in the index by the index divisor.
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\5\ See proposed Rule 4.12(c) (adding MSCI Inc. as the reporting
authority for MSCI World Index, MSCI ACWI Index, and MSCI USA
Index).
\6\ See current Rule 4.10(h); see also Securities Exchange Act
Release No. 74681 (April 8, 2015), 80 FR 20032 (April 14, 2015) (SR-
CBOE-2015-023) (order approving proposed rule change to adopt rules
to permit listing and trading of options on the MSCI EAFE Index
(``EAFE options'') and the MSCI EM Index) (``EM options'') (``MSCI
EAFE and EM Approval'').
\7\ See summary and comprehensive information about the GIMI
methodology, available at <a href="https://www.msci.com/index/methodology/latest/GIMI">https://www.msci.com/index/methodology/latest/GIMI</a>.
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MSCI monitors and maintains each of the MSCI World, ACWI, and USA
Indexes. Adjustments to each index are made on a daily basis with
respect to corporate events and dividends. MSCI reviews each index on a
quarterly basis (February, May, August and November) ``with the
objective of reflecting the evolution of the underlying equity markets
and segments on a timely basis, while seeking to achieve: [i]ndex
continuity, [c]ontinuous investability of constituents and
replicability of the indexes, and [i]ndex stability and low index
turnover.'' \8\ Each quarterly review of the MSCI World, ACWI, and USA
Index involves, among other things, updating the constituent
securities.\9\
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\8\ See id. at Section 3.
\9\ Id.
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For each of the MSCI World, ACWI, and USA Index, real-time data is
distributed approximately every 15 seconds while the index is being
calculated using MSCI's real-time
[[Page 5590]]
calculation engine to major quotation vendors, including Bloomberg L.P.
(``Bloomberg''), FactSet Research Systems, Inc. (``FactSet''), and LSEG
Data & Analytics (``LSEG''). End of day data is distributed daily to
clients through MSCI as well as through major quotation vendors,
including Bloomberg, FactSet, and LSEG.
MSCI World Index
The MSCI World Index is a free float-adjusted market capitalization
index that is designed to measure the equity market performance of
developed markets. The MSCI World Index consists of component stocks
from 23 developed markets.\10\ The MSCI World Index consists of large-
and mid-cap components across these markets, has 1,509 constituents,
and covers approximately 85% of the free float-adjusted market
capitalization in each country.\11\ The MSCI World Index was launched
on March 31, 1986.
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\10\ These developed markets include Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong,
Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom,
and the United States.
\11\ See MSCI World Index fact sheet (dated November 30, 2023),
available at MSCI World Index.
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The Exchange notes that the iShares MSCI World ETF exchange-traded
fund (``ETF'') is an actively traded product. The Exchange also lists
options overlying that ETF (``URTH options'') and those options are
actively traded as well. MSCI World Index futures contracts (``MWS
futures'') are listed for trading on the ICE Futures U.S.\12\ and other
derivatives contracts on the MSCI World Index are listed for trading in
Europe.
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\12\ See MWS futures contract specifications, available at MSCI
World NTR Index Future (<a href="http://ice.com">ice.com</a>).
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The Exchange proposes to base trading in options on the MSCI World
Index on a fraction of the full size of the index. In particular, the
Exchange propose to list MXWLD options that are based on 1/100th of the
value of the MSCI World Index. The Exchange believes that listing
options on the reduced value of the index will attract a greater source
of customer business than if options were based on the full value of
the MSCI World Index. The Exchange further believes that listing
options on a reduced value of the index may enhance investors'
opportunities to hedge, or speculate on, the market risk associated
with the stocks comprising the MSCI World Index. Additionally, by
reducing the value of the MSCI World Index, investors will be able to
use this trading vehicle while extending a smaller outlay of capital.
The Exchange believes this may attract additional investors, and, in
turn, create a more active and liquid trading environment.
MSCI ACWI Index
The MSCI ACWI Index is a free float-adjusted market capitalization
index that is designed to measure the equity performance of developed
markets and emerging markets. The MSCI ACWI Index consists of component
stocks from 23 developed markets \13\ and 24 emerging markets.\14\ The
MSCI ACWI Index consists of large- and mid-cap components across these
markets, has 2,946 constituents, and covers approximately 85% of the
global investable equity opportunity set.\15\ The MSCI ACWI Index was
launched on May 31, 1990.
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\13\ These developed markets include Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong,
Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom,
and the United States.
\14\ These emerging markets include Brazil, Chile, China,
Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia,
Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar,
Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, and the United
Arab Emirates.
\15\ See MSCI ACWI Index fact sheet (dated November 30, 2023),
available at MSCI ACWI Index.
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The Exchange notes that the iShares MSCI ACWI ETF is an actively
traded product. The Exchange also lists options overlying that ETF
(``ACWI options'') and those options are actively traded as well. MSCI
ACWI Index futures contracts (``MMW futures'') are listed for trading
on the ICE Futures U.S.\16\ and other derivatives contracts on the MSCI
ACWI Index are listed for trading in Europe.
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\16\ See MMW futures contract specifications, available at MSCI
ACWI NTR Index Future (<a href="http://ice.com">ice.com</a>).
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MSCI USA Index
The MSCI USA Index is a free float-adjusted market capitalization
index that is designed to measure the performance of the large- and
mid-cap segments of the U.S. market. The MSCI USA Index consists of
large- and mid-cap components from the United States, has 625
constituents, and covers approximately 85% of the free float-adjusted
market capitalization in the United States.\17\ The MSCI USA Index was
launched on March 31, 1986.
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\17\ See MSCI USA Index fact sheet (dated November 30, 2023),
available at MSCI USA Index.
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The Exchange notes that the Invesco MSCI USA ETF is an actively
traded product.\18\ MSCI USA Index futures contracts (``USS futures'')
are listed for trading on the ICE Futures U.S.\19\ and other
derivatives contracts on the MSCI USA Index are listed for trading in
Europe.
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\18\ The Invesco MSCI USA ETF does not currently satisfy
criteria for options trading on the Exchange pursuant to Rule 4.3.
\19\ See USS futures contract specifications, available at MSCI
USA GTR Index Futures (<a href="http://ice.com">ice.com</a>).
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The Exchange proposes to base trading in options on the MSCI USA
Index on a fraction of the full size of the index. In particular, the
Exchange propose to list MXUSA options that are based on 1/100th of the
value of the MSCI USA Index. The Exchange believes that listing options
on the reduced value of the index will attract a greater source of
customer business than if options were based on the full value of the
MSCI USA Index. The Exchange further believes that listing options on a
reduced value of the index may enhance investors' opportunities to
hedge, or speculate on, the market risk associated with the stocks
comprising the MSCI USA Index. Additionally, by reducing the value of
the MSCI USA Index, investors will be able to use this trading vehicle
while extending a smaller outlay of capital. The Exchange believes this
may attract additional investors, and, in turn, create a more active
and liquid trading environment.
Initial and Maintenance Listing Criteria
The Exchange proposes to apply to each of the MSCI World Index,
MSCI ACWI Index, and MSCI USA Index the same initial listing criteria
that currently apply to the MSCI EAFE Index and the MSCI EM Index.\20\
Each of the MSCI World Index, the MSCI ACWI Index, and the MSCI USA
Index satisfies the initial listing criteria currently set forth for
EAFE and EM options, as set forth in Rule 4.10(h).\21\ Specifically,
with respect to each of the MSCI World, ACWI, and USA Index:
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\20\ See proposed Rule 4.10(h).
\21\ The initial listing criteria in Rule 4.10(h) also apply to
the FTSE Emerging Index (FTSE Emerging) and FTSE Developed Europe
Index (FTSE Developed).
(1) the index is broad-based, as defined in Rule 4.11; \22\
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\22\ Rule 4.11 defines a broad-based index as an index designed
to be representative of a stock market as a whole or of a range of
companies in unrelated industries.
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(2) options on the index are designated as P.M.-settled index
options;
(3) the index is capitalization-weighted, price-weighted,
modified capitalization-weighted or equal dollar-weighted;
(4) the index consists of 500 or more component securities;
(5) all of the component securities of the index will have a
market capitalization of greater than $100 million
(6) no single component security accounts for more than 15% of
the weight of the index,
[[Page 5591]]
and the five highest weighted component securities in the index do
not, in the aggregate, account for more than 50% of the weight of
the index;
(7) non-U.S. component securities (stocks or ADRs) that are not
subject to comprehensive surveillance agreements do not, in the
aggregate, represent more than: (A) 25% of the weight of the EAFE
Index (each of the MSCI World, ACWI, and USA Indexes satisfies this
criterium), (B) 27.5% of the weight of the EM Index, (C) 32.5% of
the weight of the FTSE Developed Index, and (D) 35% of the weight of
the FTSE Emerging Index;
(8) during the time options on the index are traded on the
Exchange, the current index value is widely disseminated at least
once every 15 seconds by one or more major market data vendors; \23\
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\23\ This listing criteria permits the Exchange to continue to
trade EAFE, FTSE Developed, and FTSE Emerging options after trading
in all component securities has closed for the trading day and the
index level is no longer widely disseminated at least once every 15
seconds as long as corresponding futures contracts are still
trading. This is inapplicable to MXWLD, MXACW, and MXUSA options, as
the index level for each index will be widely disseminated through
the end of trading for options on each index.
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(9) the Exchange reasonably believes it has adequate system
capacity to support the trading of options on the index, based on a
calculation of the Exchange's current Independent System Capacity
Advisor (ISCA) allocation and the number of new messages per second
expected to be generated by options on such index; and
(10) The Exchange has written surveillance procedures in place
with respect to surveillance of trading of options on the index.
The Exchange also proposes to subject each of the MSCI World, ACWI,
and USA Indexes to the maintenance listing standards set forth in Rule
4.10(i), which currently applies to the MSCI EAFE and EM Indexes: \24\
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\24\ The maintenance listing criteria in Rule 4.10(i) also apply
to the FTSE Emerging Index (FTSE Emerging) and FTSE Developed Europe
Index (FTSE Developed).
(1) the conditions stated in paragraphs (1), (2), (3), (4) (8),
(9), and (10) above must continue to be satisfied; the conditions
stated in paragraphs (5) and (6) above must be satisfied only as of
the first day of January and July in each year; and the conditions
set forth in paragraph (7) must be satisfied as of the first day of
the month following MSCI's review of the weighting of the
constituents in the applicable index but in no case less than a
quarterly basis; and
(2) the total number of component securities in the index may
not increase or decrease by more than 35% from the number of
component securities in the index at the time of its initial
listing.\25\
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\25\ This maintenance criteria applies a 10% threshold rather
than a 35% threshold to the EM Index. As is the case with other
index options authorized for listing and trading on Cboe Options, in
the event the MSCI World Index, MSCI ACWI Index, or MSCI USA Index
fails to satisfy the maintenance listing standards, the Exchange
will not open for trading any additional series of options of that
class unless such failure is determined by the Exchange not to be
significant and the Commission concurs in that determination, or
unless the continued listing of that class of index options has been
approved by the Commission under Section 19(b)(2) of Act.
Because each of the MSCI World Index, MSCI ACWI Index, and MSCI USA
Index has a large number of component securities and is based on the
same methodology as the MSCI EAFE and EM Indexes, as discussed above,
the Exchange believes it is appropriate for the initial and maintenance
listing criteria (which require continual and periodic compliance) set
forth under Rule 4.10(h) and (i) to also apply to the MSCI World, ACWI,
and USA Index options.
General Trading
The Exchange proposes that MXWLD, MXACW, and MXUSA options will
trade during the same hours as other index options, including EAFE and
EM options. Specifically, the Exchange proposes to adopt Regular
Trading Hours of 9:30 a.m. to 4:00 p.m. (Eastern time) for MXWLD,
MXACW, and MXUSA options.\26\
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\26\ See proposed Rule 5.1(b)(2)(A).
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As proposed, the last trading day for MXUSA options will be the day
of expiration (from 9:30 a.m. to 4:00 p.m. (Eastern time), pursuant to
Rule 5.1(b)(2)(A)). As set forth below, the Exchange proposes that
MXUSA options will be p.m.-settled, which means the exercise settlement
value of an expiring option is derived from the closing prices of the
underlying components on the series expiration date. As noted above,
the MSCI USA Index is comprised of components solely from the United
States. Therefore, the components of the MSCI USA Index trade from 9:30
a.m. to 4:00 p.m. (Eastern time), including on the expiration date of
the proposed MXUSA options. Allowing options to trade through their
expiration (and thus on their day of expiration) will provide investors
with the ability to modify their positions in response to changes in
the prices of the underlying index components that will impact the
settlement values of those options. This is consistent with the last
trading day for other options on broad-based p.m.-settled indexes
comprised of components solely from the United States.\27\
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\27\ For example, p.m.-settled options on the S&P 500 Index may
trade on their expiration dates.
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The Exchange proposes to amend Rule 5.1(b)(2)(E) to provide that
the last trading day for MXWLD and MXACW options will be the business
day prior to the expiration date of the specific series (from 9:30 a.m.
to 4:00 p.m. (Eastern time), pursuant to Rule 5.1(b)(2)(A)).\28\ As set
forth below, the Exchange proposes that MXWLD and MXACW options will be
p.m.-settled, which means the exercise settlement value of an expiring
option is derived from the closing prices of the underlying components
on the series expiration date. As noted above, each of the MSCI World
Index and MSCI ACWI Index consists of components from 23 countries.
Because the components of each of these indexes encompass multiple
markets around the world (unlike the components of the MSCI USA Index,
all of which trade in the United States and thus during regular U.S.
trading hours of 9:30 a.m. to 4:00 p.m. (Eastern time)), the components
are subject to varying trading hours. For each of these indexes, the
first components open trading at approximately 4:00 p.m. (Eastern time)
on the prior trading day, and the last components end trading at
approximately 4:00 p.m. (Eastern time). As a result, trading in various
components would end prior to the beginning of MXWLD and MXACW Regular
Trading Hours at 9:30 a.m. (Eastern time).\29\ As a result, the closing
prices of those components, which are used to determine the exercise
settlement value, will be determined prior to the time when the
expiring options may begin trading on the expiration date. This
increases the risk of providing liquidity in these products on that
date. Generally, the prices of futures on the MSCI World and ACWI
Indexes can be a proxy for the current level of the applicable index
when options on those indexes are trading on the Exchange while the
index level is not being disseminated. However, that is not the case on
options' expiration dates, as the prices that will be used to determine
the exercise settlement value are fixed once trading in the components
ends, and thus futures trading prices after trading in those components
end have no bearing on the exercise settlement value. Therefore, the
Exchange believes it is appropriate to stop trading in expiring MXWLD
and MXACW options on the business day prior to the expiration date.
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\28\ Amendment No. 1 deletes the proposed rule change to add
MXUSA options to the list of options in Rule 5.1(b)(2)(E).
Therefore, as proposed in this Amendment No. 1, the last trading day
for MXUSA options will be the expiration date of the specific
series.
\29\ For example, some components end trading at 10:45 p.m.
(Eastern time) on the prior trading day. Trading in the other
components ends at various times before and during the U.S. trading
day.
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[[Page 5592]]
Pursuant to Rule 5.3(a), bids and offers on MXWLD, MXACW, and MXUSA
options (like all other options) must be expressed in terms of dollars
and decimals per unit of the underlying index. Pursuant to Rule 5.4(a),
the minimum increment for bids and offers on simple orders for options
on these three indexes, as is the case for most other index options,
will be $0.05 if the series trading price is lower than $3.00 and $0.10
if the series trading price is $3.00 or higher. Rule 5.4(b) provides
that the minimum increment for bids and offers on complex orders in
options on these three indexes will be $0.01 or greater (as determined
by the Exchange) and that the legs may be executed in $0.01 increments.
MXWLD, MXACW, and MXUSA options will be subject to the same
procedures for adding and deleting strikes for index options as other
index options. Specifically, Rule 4.13, Interpretation and Policy .01
states the procedures for adding and deleting strike prices for index
options are provided in Rule 4.5 and Interpretations and Policies
related thereto, as otherwise generally provided by Rule 4.13, and as
otherwise set forth in Rule 4.13, Interpretation and Policy .01.\30\
The Exchange proposes to amend Rule 4.13, Interpretation and Policy
.01(a) to provide that the interval between strike prices for MXWLD,
MXACW, and MXUSA options will be no less than $5.00 if the strike price
is $200 or above, and will be no less than $2.50 if the strike price is
less than $200.00. This is consistent with the current strike intervals
of many other index options, including EAFE and EM options.
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\30\ These Rules set forth the criteria for listing initial and
additional series of the same class as the current value of the
underlying index moves. Generally, additional series must be
``reasonably related'' to the current index value, which means that
strike prices must be within 30% of the current index value. New
series of index option contracts may be added up to the fifth
business day prior to expiration. Series exceeding the 30% range may
be listed based on demonstrated customer interest. See Rule 4.13,
Interpretations and Policies .01 and .04.
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Pursuant to Rule 4.20, the Exchange may authorize for trading a
like flexible (``FLEX'') options class on any index if it may authorize
for trading a non-FLEX option class on that index pursuant to Rule
4.10. Therefore, as proposed, the Exchange may authorize for trading
FLEX Options on the MSCI World Index, MSCI ACWI Index, and MSCI USA
Index, which the Exchange may authorize for trading pursuant to
proposed Rule 4.10(h).
Additionally, Rule 5.6(c) permits Multi-Class Spread Orders, which
are orders to buy a stated number of contracts of a broad-based index
option and to sell an equal number, or an equivalent number, of
contracts of a related broad-based index option. For purposes of Multi-
Class Spread Orders, a ``broad-based index option'' is an option on a
broad-based index, ETF, or exchange-traded note (``ETN'') listed in
subparagraph (1) of the definition of Multi-Class Spread Order in Rule
5.6(c) or any other broad-based index or ETF or ETN derived from a
broad-based index the Exchange determines creates an appropriate hedge
with any other broad-based index option. The Exchange proposes to add
MSCI World Index and MSCI ACWI Index, as well as corresponding ETFs
URTH and ACWI, and the combinations of MXWLD and URTH options and MXACW
and ACWI options to the list of permissible Multi-Class Spread Orders,
as the Exchange has determined that these combinations create
appropriate hedges (as do other MSCI options and corresponding ETF
options).
Expiration Months, Settlement, and Exercise Style
Consistent with existing rules for other index options, including
EAFE and EM options, the Exchange will allow up to twelve near-term
expiration months for each of MXWLD, MXACW, and MXUSA options \31\ as
well as LEAPS.\32\ These indexes would also be eligible for all other
expirations permitted for other broad-based indexes, including
Quarterly Index Expirations \33\ and Weekly and End of Month
Expirations.\34\ Given that the MSCI World, ACWI, and USA Indexes are
broad-based indexes and based on the same methodology as the MSCI EAFE
and EM Indexes, as noted above, the Exchange believes it is appropriate
for options on these three indexes to be eligible for the same
expirations for which the options on other broad-based indexes,
including MSCI EAFE and EM Indexes, are eligible under current rules.
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\31\ See proposed Rule 4.13(a)(2).
\32\ Pursuant to Rule 4.13(b)(1), the Exchange may list up to 10
expiration months of long-term index option series (``LEAPS'') that
expire from 12 to 180 months from the date of issuance.
\33\ See Rule 4.13(c).
\34\ See Rule 4.13(e).
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MXWLD, MXACW, and MXUSA options will be P.M.-, cash-settled
contracts with European-style exercise.\35\ The Exchange believes that
P.M.-settlement is appropriate for MXWLD and MXACW options due to the
natures of the underlying indexes that encompass multiple markets
around the world. The components of each index open with the start of
trading in certain parts of Asia at approximately 4:00 p.m. (Eastern
time) (prior day) and close with the end of trading in North America at
approximately 4:00 p.m. (Eastern time) (next day) as closing prices
from North American countries are accounted for in the closing
calculation. The Exchange further believes that P.M.-settlement is
appropriate for MXWLD and MXACW options, as well as MXUSA options,
because the Exchange understands that investors prefer to be able to
trade out of positions during the entire final day of trading. The
Exchange notes the Commission recently approved proposals to make other
pilots permitting P.M.-settlement of index options permanent after
finding those pilots were consistent with the Act and the options
subject to those pilots had no significant impact on the market.\36\
Rule 4.13(e) currently permits the Exchange to list P.M.-settled weekly
and end-of-month expirations for all broad-based index options, which
would include MXWLD, MXACW, and MXUSA options.
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\35\ See Proposed Rule 4.13(a)(3).
\36\ See Securities Exchange Act Release Nos. 98454 (September
20, 2023) (SR-CBOE-2023-005) (order approving proposed rule change
to make permanent the operation of a program that allows the
Exchange to list p.m.-settled third Friday-of-the-month SPX options
series); 98455 (September 20, 2023) (SR-CBOE-2023-019) (order
approving proposed rule change to make permanent the operation of a
program that allows the Exchange to list p.m.-settled third Friday-
of-the-month XSP and MRUT options series); and 98456 (September 20,
2023) (SR-CBOE-2023-020) (order approving proposed rule change to
make the nonstandard expirations pilot program permanent).
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The Exchange proposes to amend Rule 4.13(a)(3) to add MXWLD, MXACW,
and MXUSA options to the list of other European-style (and P.M.-
settled) index options. European-style (and P.M.-settled) exercise is
consistent with many index options, as set forth in Rule 4.13(a)(3).
EAFE and EM options are also P.M.-settled with European-style exercise.
Given that the MSCI World, ACWI, and USA Indexes are broad-based
indexes and based on the same methodology as the MSCI EAFE and EM
Indexes, as noted above, the Exchange believes it is appropriate for
options on these three indexes to have the same settlement and exercise
style as the other MSCI Index options.
Like other index options, the exercise settlement amount of MXWLD,
MXACW, and MXUSA options will be equal to the difference between the
exercise settlement value (with respect to MXWLD and MXUSA options, 1/
100th of the official closing value of the MSCI World Index and MSCI
USA Index, respectively, and, with respect to MXACW options, the
official closing value of the MSCI ACWI Index, each as
[[Page 5593]]
reported by the reporting authority on the day on which the index
option contract is exercised) and the exercise price of the option
(multiplied by the contract multiplier of $100).\37\
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\37\ See Rule 4.13, Interpretation and Policy .05. If the
exercise settlement value is not available or the normal settlement
procedure cannot be utilized due to a trading disruption or other
unusual circumstance, the settlement value would be determined in
accordance with the rules and bylaws of The Options Clearing
Corporation (``OCC''). See OCC Bylaws, Article XVII, Section 4.
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Position and Exercise Limits
The Exchange proposes to amend Rule 8.31(a) to apply a position
limit of 50,000 contracts (with no restrictions) to MXWLD, MXACW, and
MXUSA options.\38\ This is the same position limit that currently
exists for many other broad-based index options, including EAFE and EM
options.\39\ Pursuant to Rule 8.42(b), the exercise limit for these
options will be equivalent to the proposed position limit of 50,000
contracts. As set forth in Rule 8.31(d), positions in MXWLD options and
MXUSA options (which are proposed to be reduced-value index options)
will be aggregated with positions in full-value indexes.\40\ All
position limit hedge exemptions would apply.
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\38\ Additionally, the Exchange proposes to amend Rule
8.35(a)(6) to provide that, like FLEX Options on the MSCI EAFE Index
and MSCI EM Index, the position limits for FLEX options on the MSCI
World Index, MSCI ACWI Index, and MSCI USA Index are equal to the
position limits for the non-FLEX options on these indexes (which is
50,000 contracts, as proposed). Pursuant to Rule 8.42(g), the
exercise limit for FLEX index options (which would include FLEX
options on the MSCI World, ACWI, and USA Indexes) will be equivalent
to the FLEX position limits prescribed in Rule 8.35(a)(6). As set
forth in Rule 8.35(b), in calculating the applicable contract
reporting amount for that rule, reduced-value contracts (such as the
proposed MXWLD and MXUSA options) will be aggregated with full-value
contracts and counted by the amount by which they equal a full-value
contract.
\39\ See Rule 8.31(a).
\40\ For example, if an index is reduced by one-tenth, 10
reduced-value contracts equal one contract. If an index is reduced
by 1/100, 100 reduced-value contracts will equal one contract. See
Rule 8.31(d). The Exchange notes it currently does not list, nor
plan to list, options on the full value of the MSCI World Index or
MSCI USA Index.
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Margin
MXWLD, MXACW, and MXUSA options will be margined as ``broad-based
index'' options. Under the Exchange's Rules, particularly Rule
10.3(c)(5)(A), the margin requirement for a short put or call will be
100% of the current market value of the contract plus 15% of the
``product of the current index group value and the applicable index
multiplier,'' reduced by any out-of-the-money amount. There would be a
minimum margin requirement of 100% of the current market value of the
contract plus: 10% of the aggregate put exercise price amount in the
case of puts, and 10% of the product of the current index group value
and the applicable index multiplier in the case of calls. Additional
margin may be required under the Rules, including pursuant to Rules
10.3(h) and 10.10.
Surveillance and Capacity
The Exchange represents that it has an adequate surveillance
program in place for MXWLD, MXACW, and MXUSA options and intends to use
the same surveillance procedures currently utilized for each of the
Exchange's other index options to monitor trading in these options. The
Exchange is a member of the Intermarket Surveillance Group (``ISG''),
along with numerous other self-regulatory bodies across the world. ISG
provides a framework for sharing information and coordinating
regulatory efforts among exchanges trading securities and related
products.\41\ The Exchange is also an affiliate member of the
International Organization of Securities Commissions (``IOSCO''), which
has members from over 100 different countries. Each of the countries
from which there is a component security in both the MSCI EAFE and MSCI
EM Indexes is a member of IOSCO.\42\ Finally, the Exchange has entered
into various comprehensive surveillance agreements (``CSAs'') and/or
Memoranda of Understanding with various stock exchanges. Given the
capitalization of the EAFE and EM Indexes and the deep and liquid
markets for the securities underlying these Indexes, the concerns for
market manipulation and/or disruption in the underlying markets are
greatly reduced.
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\41\ See list of current ISG members, available at Search
Results--Members--isg (<a href="http://isgportal.org">isgportal.org</a>).
\42\ See list of current ordinary IOSCO members, available at
<a href="http://www.iosco.org/about/?subsection=membership&memid=1">http://www.iosco.org/about/?subsection=membership&memid=1</a>. There are
three categories of IOSCO members: ordinary, associate and
affiliate. In general, the ordinary members (124) are the national
securities commissions in their respective jurisdictions. Associate
members (12) are usually agencies or branches of government, other
than the principal national securities regulator in their respective
jurisdictions that have some regulatory competence over securities
markets, or intergovernmental international organizations and other
international standard-setting bodies, such as the IMF and the World
Bank, with a mission related to either the development or the
regulation of securities markets. Affiliate members (62) are self-
regulatory organizations, stock exchanges, financial market
infrastructures, investor protection funds and compensation funds,
and other bodies with an appropriate interest in securities
regulation. See IOSCO Fact Sheet, available at <a href="http://www.iosco.org/about/pdf/IOSCO-Fact-Sheet.pdf">http://www.iosco.org/about/pdf/IOSCO-Fact-Sheet.pdf</a>.
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The Exchange has analyzed its capacity and represents that it
believes the Exchange and the Options Price Reporting Authority
(``OPRA'') have the necessary systems capacity to handle the additional
traffic associated with the listing of new series that would result
from the introduction of MXWLD, MXACW, and MXUSA options. Because the
proposal is limited to three classes, the Exchange believes any
additional traffic that would be generated from the introduction of the
MSCI World, ACWI, and USA Index options would be manageable.
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 Section 6(b) of the
Act.\43\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \44\ 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) \45\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\43\ 15 U.S.C. 78f(b).
\44\ 15 U.S.C. 78f(b)(5).
\45\ Id.
---------------------------------------------------------------------------
In particular, the Exchange believes that the proposal to permit
the Exchange to list and trade options on each of the MSCI World Index,
the MSCI ACWI Index, and the MSCI USA Index will remove impediments to
and perfect the mechanism of a free and open market and a national
market system, and, in general, protect investors and the public
interest, because the proposed rule change will introduce new index
option products to the marketplace. As a result, investors will have
additional and different opportunities to hedge or speculate on the
market risk associated with these indexes by offering exchange-listed
options directly on the indexes. Further, the proposed rule change is
consistent with current Rules, which were previously approved by the
[[Page 5594]]
Commission.\46\ Specifically, each of MSCI World Index, MSCI ACWI
Index, and MSCI USA Index satisfies the same initial listing criteria
as four other broad-based indexes on which the Exchange is currently
permitted to list options.\47\ These indexes will also be subject to
the same maintenance criteria as these other broad-based indexes.\48\
These include the MSCI EAFE Index and MSCI EM Index, each of which is
calculated using the same methodology as the MSCI World Index, MSCI
ACWI Index, and MSCI USA Index.\49\ Additionally, the proposed index
options will be subject to the same rules regarding trading hours,\50\
trading increments, the number of permissible expirations, strike
intervals, settlement, and exercise style that apply to other currently
listed broad-based index options, including EAFE and EM options.\51\
The Exchange has observed no trading or capacity issues in EAFE or EM
option trading given the number of permissible expirations, p.m.-
settlement, and European-style exercise. Given the similarities of
these indexes and the MSCI World Index, MSCI ACWI Index, and MSCI USA
Index, including that there are other products available in the market
on the same indexes, the Exchange believes it is reasonable and
appropriate to list options on these indexes with similar terms as EAFE
and EM options. The Exchange believes this will benefit investors, as
it will provide market participants with additional investment and
hedging strategies consisting of options over each of these indexes.
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\46\ See MSCI EAFE and EM Approval.
\47\ See current Rule 4.10(h).
\48\ See current Rule 4.10(i).
\49\ These indexes also have the same reporting authority as the
MSCI EAFE Index and MSCI EM Index.
\50\ As discussed above and below, the proposed last trading of
expiring MXWLD and MXACW options will be the day prior to
expiration, as is the case for EAFE and EM options, while the
proposed last trading day of expiring MXUSA options will be the day
of expiration, as is the case for p.m.-settled options overlying
broad-based index options comprised solely of U.S. components.
\51\ See Rules 4.13 (including paragraphs (a)(2) and (3), (b),
(c) and (e) and Interpretation and Policy .01), 5.1(b)(2), 5.3(a),
and 5.4.
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The Exchange believes the proposed rule changes regarding the last
day of trading for MXWLD, MXACW, and MXUSA options will remove
impediments to and perfect the mechanism of a free and open market and
benefit investors. The Exchange understands that Market-Makers and
other liquidity providers will generally price these options using the
disseminated index values and data from the markets on which the
components trade (as they do for EAFE and EM options). As noted above,
when these markets are not trading during U.S. trading hours, these
liquidity providers can price the options using prices of futures
trading on the MSCI World and ACWI Indexes. While those futures prices
can serve as a proxy for the index value, they would not be able to
serve as a proxy for the settlement value on the expiration date for
MXWLD and MXACW options. This is because the futures pricing is
intended to represent the then-current index value, but does not
incorporate the closing prices of the components that will be used to
determine the settlement value. This would create risk for Market-
Makers and other liquidity providers, as they would have no data they
can use to price the expiring options based on the ultimate settlement
value. This could result in trades at prices inconsistent with the
settlement value of those options. The Exchange believes the proposed
rule change will remove impediments to and perfect the mechanism of a
free and open market by eliminating this pricing risk for liquidity
providers on the last trading day of expiring series in these products
and may provide more competitive pricing and additional trading
opportunities for expiring series, which ultimately benefits investors.
Other options stop trading on the business day preceding
expiration.\52\
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\52\ See, e.g., Rule 5.1(b)(2)(E) (pursuant to which the last
trading day for EAFE and EM options will be the business day prior
to the expiration date of the specific series).
---------------------------------------------------------------------------
The Exchange proposes that the last day of trading for MXUSA
options will be their expiration dates, like most p.m.-settled options
the Exchange lists. Unlike the MSCI World and ACWI Indexes, all of the
components of the MSCI USA Index trade on U.S. markets. Thus, the
prices of those components will be changing on the expiration date of
MXUSA options from 9:30 a.m. to 4:00 p.m. (Eastern time) on the
options' expiration dates. As noted above, the Exchange understands
that Market-Makers and other liquidity providers will generally price
these options using the disseminated index values and data from the
markets on which the components trade. With respect to the MSCI USA
Index, its underlying components will be trading from 9:30 a.m. to 4:00
p.m. (Eastern time) on the expiration date of MXUSA options, and thus
up until the time (4:00 p.m. (Eastern time)) when MSCI will disseminate
the closing value of the index. Permitting trading on the expiration
date for the MXUSA options will allow Market-Makers and other liquidity
providers to update the prices of expiring options in response to
changes in the prices of the index components on that date, which
changes will be incorporated into the settlement value of those
options. The Exchange believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market by
encouraging liquidity providers to provide more competitive pricing and
additional trading opportunities for expiring series at prices that
reflect the then-current value of the index and its components.
Additionally, permitting trading in MXUSA options on their expiration
dates will permit investors to be able to trade out of positions in
response to pricing changes of those components during the entire final
day of trading before the options' settlement. Other p.m.-settled index
options stop trading on their expiration dates.\53\
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\53\ See, e.g., Rule 5.1(b)(2)(C) (pursuant to which the last
trading day for SPX options is the expiration date of the specific
series).
---------------------------------------------------------------------------
The Exchange believes offering options on a reduced value of each
of the MSCI World Index and MSCI USA Index will benefit investors, as
it will attract a greater source of customer business than if options
were based on the full value of those indexes.\54\ The Exchange further
believes that listing options on a reduced value of the index may
enhance investors' opportunities to hedge, or speculate on, the market
risk associated with the stocks comprising the MSCI World Index and
MSCI USA Index. Additionally, by reducing the value of the MSCI World
Index and MSCI USA Index, investors will be able to use this trading
vehicle while extending a smaller outlay of capital. The Exchange
believes this may attract additional investors, and, in turn, create a
more active and liquid trading environment.
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\54\ At the close of trading on January 8, 2024, the value of
the MSCI World Index was 3153.60, and the value of the MSCI USA
Index was 4,541.61. For comparison, the value of the MSCI ACWI Index
was 720.07. The Exchange currently has authority to list several
reduced-value index options (particularly on indexes with values of
1,000 or more), such as the S&P 500 Index and the Russell 2000
Index. See Rule 4.13, Interpretation and Policy .06.
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The Exchange also believes the proposed rule change is consistent
with Section 6(b)(1) of the Act,\55\ which provides that the Exchange
be organized and have the capacity to be able to carry out the purposes
of the Act and to enforce compliance by the Exchange's Trading Permit
Holders (``TPHs'') and persons associated with its TPHs with the Act,
the rules and regulations
[[Page 5595]]
thereunder, and the rules of the Exchange. The Exchange represents that
it has the necessary systems capacity to support the new option series
given these proposed specifications. The Exchange believes the existing
surveillance procedures and reporting requirements at the Exchange and
other self-regulatory organizations are capable of properly identifying
disruptive and/or manipulative trading activity that may arise from
listing and trading MXWLD, MXACW, and MXUSA options. The Exchange also
represents it has adequate surveillances in place to detect potential
manipulation, as well as reviews in place to identify potential changes
in composition of the underlying indexes and continued compliance with
the Exchange's listing standards. These procedures utilize daily
monitoring of market activity via automated surveillance techniques to
identify unusual activity in both options and the underlyings, as
applicable.\56\ The Exchange also notes that large stock holdings must
be disclosed to the Commission by way of Schedules 13D or 13G,\57\
which are used to report ownership of stock which exceeds 5% of a
company's total stock issue and may assist in providing information in
monitoring for any potential manipulative schemes.
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\55\ 15 U.S.C. 78f(b)(1).
\56\ The Exchange believes these procedures have been effective
for the surveillance of trading other broad-based index options,
including EAFE and EM options, and will continue to employ them with
respect to MXWLD, MXACW, and MXUSA options.
\57\ 17 CFR 240.13d-1.
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Additionally, the proposed position and exercise limits that would
apply to MXWLD, MXACW, and MXUSA options are similar to the current
position and exercise limits that apply to other broad-based index
options, and the same as those that apply to EAFE and EM options. The
Exchange further notes that current Rules that apply to the trading of
other index options traded on the Exchange, such as EAFE and EM
options, would also apply to the trading of MXWLD, MXACW, and MXUSA
options, such as, for example, Rules governing customer accounts,
margin requirements, and trading halt procedures. The proposed index
options would be subject to the same reporting requirements as other
index options, which require that each TPH or TPH organization that
maintains positions in the options on the same side of the market, for
its own account or for the account of a customer, report certain
information to the Exchange. This information would include, but would
not be limited to, the options' positions, whether such positions are
hedged and, if so, a description of the hedge(s). Market-Makers \58\
(including Designated Primary Market-Makers (``DPMs'')) \59\ would
continue to be exempt from this reporting requirement, however, the
Exchange may access Market-Maker position information.\60\ Moreover,
the Exchange's requirement that TPHs file reports with the Exchange for
any customer who held aggregate large long or short positions on the
same side of the market of 200 or more options contracts of any single
class for the previous day will remain at this level for the options
subject to this proposal and will continue to serve as an important
part of the Exchange's surveillance efforts.\61\
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\58\ A Market-Maker ``Trading Permit Holder registered with the
Exchange pursuant to Rule 3.52 for the purpose of making markets in
option contracts traded on the Exchange and that has the rights and
responsibilities set forth in Chapter 5, Section D of the Rules.''
See Rule 1.1.
\59\ A DPM is a TPH organization that is approved by the
Exchange to function in allocated securities as a Market-Maker (as
defined in Rule 8.1) and is subject to the obligations under Rule
5.54 or as otherwise provided under the rules of the Exchange. See
Rule 1.1.
\60\ The Options Clearing Corporation (``OCC'') through the
Large Option Position Reporting (``LOPR'') system acts as a
centralized service provider for TPH compliance with position
reporting requirements by collecting data from each TPH or TPH
organization, consolidating the information, and ultimately
providing detailed listings of each TPH's report to the Exchange, as
well as Financial Industry Regulatory Authority, Inc. (``FINRA''),
acting as its agent pursuant to a regulatory services agreement
(``RSA'').
\61\ See Rule 8.43 for reporting requirements.
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The Exchange believes the current financial requirements imposed by
the Exchange and by the Commission adequately address concerns
regarding potentially large, unhedged positions on index options,
further promoting just and equitable principles of trading and the
maintenance of a fair and orderly market. Current margin and risk-based
haircut methodologies serve to limit the size of positions maintained
by any one account by increasing the margin and/or capital that a TPH
must maintain for a large position held by itself or by its
customer.\62\ In addition, Rule 15c3-1 \63\ imposes a capital charge on
TPHs to the extent of any margin deficiency resulting from the higher
margin requirement.
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\62\ See Rule 10.3 for a description of margin requirements.
\63\ 17 CFR 240.15c3-1.
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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, because MXWLD, MXACW, and MXUSA
options will be available to all market participants and will trade in
the same manner as other index options in accordance with the
Exchange's Rules.
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act, and instead
believes the proposed rule change will enhance competition among market
participants by introducing new index options to the market that may
compete with other products currently available in the market (such as
U.S.- and European-traded derivatives on the same indexes). As
discussed above, the MSCI World Index, MSCI ACWI Index, and MSCI USA
Index each satisfies the same initial listing criteria that currently
applies to the MSCI EAFE Index and MSCI EM Index (as well as the FTSE
Developed and FTSE Emerging Index). Additionally, the proposed terms of
these index options (including the number of expirations, settlement,
and exercise style) are consistent with current rules applicable to
many other broad-based index options.
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
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 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, as modified by Amendment No. 1, is consistent with the Act.
Comments may be submitted by any of the following methods:
[[Page 5596]]
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#1664637a733b75797b7b737862655665737538717960"><span class="__cf_email__" data-cfemail="6d1f180108400e0200000803191e2d1e080e430a021b">[email protected]</span></a>. Please include
file number SR-CBOE-2024-006 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-2024-006. 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, as
modified by Amendment No. 1, 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-2024-006 and should be submitted on or before February 20,
2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\64\
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\64\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01620 Filed 1-26-24; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on January 29, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.