Notice2024-17949
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing of Proposed Rule Change To Amend Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and Any Trust That Holds Ether
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
August 13, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 156 (Tuesday, August 13, 2024)</title>
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[Federal Register Volume 89, Number 156 (Tuesday, August 13, 2024)]
[Notices]
[Pages 65957-65961]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-17949]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100666; File No. SR-NYSEAMER-2024-45]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing of Proposed Rule Change To Amend Rule 915 To Permit the Listing
and Trading of Options on the Bitwise Ethereum ETF, the Grayscale
Ethereum Trust, the Grayscale Ethereum Mini Trust, and Any Trust That
Holds Ether
August 7, 2024.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on July 23, 2024, NYSE American LLC (``NYSE American'' or
``Exchange'') 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 self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 915 to permit the listing and
trading of options on the Bitwise
[[Page 65958]]
Ethereum ETF, the Grayscale Ethereum Trust (ETH), the Grayscale
Ethereum Mini Trust, and any trust that holds ether. The proposed rule
change is available on the Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a>, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
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 those 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 parts 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 915 (Criteria for Underlying
Securities), Commentary .10, to allow the Exchange to list and trade
options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust
(ETH), the Grayscale Ethereum Trust Mini, and any trust that holds
[sic] (collectively, ``Ether ETPs'').\4\
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\4\ See proposed Commentary .10 to Rule 915. The Commission
recently approved rule changes to list and trade shares of Ether-
Based Trust Shares pursuant to Rule 8.201-E(c)(1) (Commodity-Based
Trust Shares), including the Bitwise Ethereum ETF and the Grayscale
Ethereum Trust (ETH) and the Grayscale Ethereum Trust Mini. See
Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR
3008 (May 30, 2024) (SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31)
(order approving the listing and trading of, among other Ether-Based
Exchange-Traded Products, the Bitwise Ethereum ETF and the Grayscale
Ethereum Trust (ETH)); and 100541 (July 17, 2024) __FR__[sic] (SR-
NYSEARCA-2024-44) (order approving the listing and trading of, among
others, the Grayscale Ethereum Trust Mini).
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Commentary .06 to Rule 915 (hereinafter ``Commentary .06'')
provides that, subject to certain other criteria set forth in Rule 915,
securities deemed appropriate for options trading include ETFs that
represent certain types of interests,\5\ including interests in certain
specific trusts that hold financial instruments, money market
instruments, or precious metals (which are deemed commodities).
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\5\ See Commentary .06, which permits options trading on ETFs
that are traded on a national securities exchange and are defined as
an ``NMS stock'' in Rule 600(b)(55) of Regulation NMS, that
represent 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 not 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); 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'');
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''); or represents 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''); provided
that all of the conditions listed in Rules 915 and 916 are met.
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Ether ETPs, including the Bitwise Ethereum ETF, the Grayscale
Ethereum Trust (ETH), and the Grayscale Ethereum Mini Trust are ether-
backed commodity ETPs structured as trusts.\6\
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\6\ See supra note 4 (regarding order approving rule changes to
list and trade shares of ``Ether-Based Exchange-Traded Products''
pursuant to Rule 8.201-E(c)(1) (Commodity-Based Trust Shares),
including Bitwise Ethereum ETF, Grayscale Ethereum, and the
Grayscale Ethereum Trust Mini. For a complete description of the
Bitwise Ethereum ETF, the Grayscale Ethereum Trust (ETH), and the
Grayscale Ethereum Mini Trust see SR-NYSEARCA-2024-31, SR-NYSEARCA-
2023-70, and SR-NYSEARCA-2024-44, respectively.
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Similar to any ETFs currently deemed appropriate for options
trading under Rule 915, the investment objective of an Ether ETP trust
is for its shares to reflect the performance of ether (less the
expenses of the trust's operations), offering investors an opportunity
to gain exposure to ether without the complexities of ether delivery.
As is the case for ETFs currently deemed appropriate for options
trading, a [sic] Ether ETP's shares represent units of fractional
undivided beneficial interest in the trust, the assets of which consist
principally of ether and are designed to track ether or the performance
of the price of ether and offer access to the ether market.\7\
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\7\ The trust may include minimal cash. See e.g., Securities
Exchange Act Release No. 100213 (May 22, 2024), 89 FR 46533, 46534
(May 29, 2024) (SR-NYSEARCA-2024-31) (providing that, for the
Bitwise Ethereum ETF, the ``only assets will be ether and cash'').
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Ether ETPs provide investors with cost efficient alternatives that
allow a level of participation in the ether market through the
securities market. The primary substantive difference between Ether
ETPs and ETFs currently deemed appropriate for options trading are that
ETFs may hold securities, certain financial instruments, and specified
precious metals (which are commodities), while Ether ETPs hold ether
(which is also deemed a commodity).\8\ The Exchange believes that
offering options on Ether ETPs, including the Bitwise Ethereum ETF, the
Grayscale Ethereum Trust (ETH), and the Grayscale Ethereum Trust Mini,
will benefit investors by providing them with an additional, relatively
lower cost investing tool to gain exposure to spot ether as well as a
hedging vehicle to meet their investment needs in connection with ether
products and positions.
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\8\ Similar to other commodity ETFs in which options may be
listed on the Exchange pursuant to Rule 915, Commentary .10 (e.g.,
SPDR Gold Trust, the iShares COMEX Gold Trust, the iShares Silver
Trust, the ETFS Gold Trust, the ETFS Silver Trust, the ETFS
Palladium Trust, or the ETFS Platinum Trust), each of the Bitwise
Ethereum ETF, the Grayscale Ethereum Trust (ETH), and the Grayscale
Ethereum Trust Mini, are trusts that essentially offer analogous
objectives and benefits to investors.
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Ether ETPs will trade in the same manner as options on other ETFs
(including commodities ETFs) on the Exchange.\9\ In particular, and as
detailed below, Exchange rules that apply to the listing and trading of
all options on ETFs on the Exchange, including, for example, rules that
govern listing criteria, expirations, exercise prices, minimum
increments, position and exercise limits, margin requirements, customer
accounts and trading halt procedures, will likewise apply to the
listing and trading of options on Ether ETPs on the Exchange.
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\9\ As with any ETF that trades on the Exchange, the Exchange
would not list and trade options on Ether ETPs, including the
Bitwise Ethereum ETF, the Grayscale Ethereum Trust (ETH), and the
Grayscale Ethereum Trust Mini, unless such instruments satisfied all
applicable criteria in Rules 915 and 916, as applicable.
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The Exchange's initial listing standards for ETFs on which options
[[Page 65959]]
may be listed and traded on the Exchange will apply to Ether ETPs. The
Exchange expects Ether ETPs to satisfy the initial listing standards as
set forth in Rule 915(a) (generally) and Commentary .06 (which applies
to ETFs specifically). Pursuant to Rule 915(a), a security (which
includes ETFs) 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 Act,) and be
characterized by a substantial number of outstanding shares that are
widely held and actively traded. In addition, Commentary .06 requires
that ETFs must either (1) meet the criteria and standards set forth in
Commentary .01 to Rule 915,\10\ or (2) the ETFs are available for
creation and redemption each business day as set forth in Commentary
.06(a)(ii).
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\10\ See Commentary .01 to Rule 915, which sets forth minimum
requirements for the underlying security which include, but are not
limited to, 7,000,000 underlying shares, 2,000 shareholders, and
trading volume of 2,400,000 shares over the preceding twelve months.
Additionally, the rule requires that the market price per share of
the underlying security must be at least $7.50 for the majority of
business days during the three calendar months preceding the date of
selection of an option class. For underlying securities that are
deemed Covered Securities, as defined under Section 18(b)(1)(A) of
the Securities Act of 1933, the closing market price of the
underlying security must be at least $3.00 per share for the
previous three consecutive business days prior to the date of
selection of an option class.
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Options on Ether ETPs will also be subject to the Exchange's
continued listing standards set forth in Commentary .07 to Rule 916
which provides that options on ETFs may be subject to the suspension of
opening transactions as follows: (1) the ETFs no longer meets the terms
of Commentary .01 to Rule 916; (2) following the initial twelve-month
period beginning upon the commencement of trading of the ETFs, there
are fewer than 50 record and/or beneficial holders of the ETFs for 30
or more consecutive trading days; (3) the value of the underlying
commodity is no longer calculated or available; or (4) such other event
occurs or condition exists that in the opinion of the Exchange makes
further dealing on the Exchange inadvisable. Additionally, ETFs will be
deemed to not meet the requirements for continued approval, and the
Exchange will not open for trading any additional series of option
contracts covering the ETF if such security ceases to be an ``NMS
stock'' as provided for Commentary .01(5) to Rule 915 or the ETF is
halted from trading on its primary market.\11\
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\11\ See Commentary .07 to Rule 916. For avoidance of doubt and
consistent with this proposal, the Exchange proposes to amend Rule
916 to include the Ether ETPs in the list of ETFs subject to the
continued listing standards. See proposed Commentary .11 to Rule 916
(proving that ``[f]or purposes of Commentary .07 of this Rule 916,
shares of the SPDR[supreg] Gold Trust (symbol: GLD), iShares COMEX
Gold Trust (symbol: IAU), the iShares Silver Trust (symbol: SLV),
and the ETFS Silver Trust (symbol: SIVR), the ETFS Gold Trust
(symbol: SGOL), the ETFS Palladium Trust (symbol: PALL), the ETFS
Platinum Trust (symbol: PPLT), the Bitwise Ethereum ETF (symbol:
ETHW), the Grayscale Ethereum Trust (ETH) (symbol: ETHE), the
Grayscale Ethereum Mini Trust (symbol: ETH), and any trust that
holds ether, are deemed to be `Exchange-Traded Fund Shares' '')
(emphasis added).
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Options on Ether ETPs listed pursuant to proposed Commentary .10 to
Rule 915 would be physically settled contracts with American-style
exercise \12\ and would be included within the definition of securities
as such terms are used in the Exchange's rules and, as such, would be
subject to Exchange rules and procedures that currently govern the
trading of securities on the Exchange, including Exchange rules
governing the trading of equity options. Furthermore, the Exchange's
rules pertaining to position and exercise limits or margin shall apply
to options on Ether ETPs.
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\12\ See Rule 902 (Rights and Obligations of Holders and
Writers), which provides that the rights and obligations of holders
and writers of option contracts of any class of options dealt in on
the Exchange shall be as set forth in the Rules of the Clearing
Corporation. See also OCC Rules, Chapter 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. OCC Rules can be located
at: <a href="https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf</a>.
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Specifically, consistent with Rule 903, which governs the opening
of options series on a specific underlying security (including ETFs),
the Exchange will open at least one expiration month for options on
Ether ETPs and may also list series of options on Ether ETPs for
trading on a weekly \13\ or quarterly \14\ basis. The Exchange may also
list long-term equity option series (``LEAPS'') \15\ that expire from
twelve to thirty-nine months from the time they are listed.
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\13\ See Rule 903(h).
\14\ See Rule 903, Commentary .09.
\15\ See Rule 903, Commentary .03.
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Pursuant to Rule 903, Commentary .05(a), which governs strike
prices of series of options on ETFs, the interval between strike prices
of series of options on ETFs approved for options trading (per
Commentary .06) will be fixed at a price per share which is reasonably
close to the price per share at which the underlying security is traded
in the primary market at or about the same time such series of options
is first open for trading on the Exchange, or at such intervals as may
have been established on another options exchange prior to the
initiation of trading on the Exchange. With respect to the Short Term
Options Series or Weekly Program, during the month prior to expiration
of an option class that is selected for the Short Term Option Series
Program, the strike price intervals for the related non-Short Term
Option (``Related non-Short Term Option'') shall be the same as the
strike price intervals for the Short Term Option.<SUP>16</SUP>
Specifically, the Exchange may open for trading Short Term Option
Series at strike price intervals of (i) $0.50 or greater where the
strike price is less than $100, and $1 or greater where the strike
price is between $100 and $150 for all option classes that participate
in the Short Term Options Series Program; (ii) $0.50 for option classes
that trade in one dollar increments and are in the Short Term Option
Series Program; or (iii) $2.50 or greater where the strike price is
above $150.<SUP>17</SUP> Additionally, the Exchange may list series of
options pursuant to the $1 Strike Price Interval Program,<SUP>18</SUP>
the $0.50 Strike Program,<SUP>19</SUP> the $2.50 Strike Price
Program,<SUP>20</SUP> and the $5 Strike Program.<SUP>21</SUP> Rule
960NY governs the minimum increment for bids and offers for both equity
and index options. Pursuant to Rule 960NY, where the price of a series
of options in Ether ETPs 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 <SUP>22</SUP> consistent with the minimum increments for
options on other ETFs listed on the Exchange. Any and all new series of
options on Ether ETPs that the Exchange lists will be consistent and
comply with the expirations, strike prices, and minimum increments set
forth in Rules 915, 903, and 970NY, as applicable.
Position and exercise limits for options on ETFs, including options
on Ether ETPs, are determined pursuant to Rules 904 and 905,
respectively. Position and exercise limits for ETFs options vary
according to the number of outstanding shares and the trading volumes
of the underlying ETF over the past six months, where the largest in
capitalization and the most frequently traded ETFs 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 ETFs have position and exercise limits of
200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for
splits, recapitalizations, etc.) on the same side of the market.
Further, Rule 462, which governs margin requirements applicable to the
trading of all options on the
[[Page 65960]]
Exchange including options on ETFs, will also apply to the trading of
Ether ETP options.
* * * * *
The Exchange notes that options on Ether ETPs would not be
available for trading until The Options Clearing Corporation (``OCC'')
represents to the Exchange that it is fully able to clear and settle
such options. The Exchange has also analyzed its capacity and
represents that it and The Options Price Reporting Authority (``OPRA'')
have the necessary systems capacity to handle the additional traffic
associated with the listing of options on Ether ETPs. The Exchange
believes any additional traffic that would be generated from the
trading of options on Ether ETPs would be manageable. The Exchange
represents that Exchange members will not have a capacity issue as a
result of this proposed rule change.
The Exchange represents that the same surveillance procedures
applicable to all other options on other ETFs currently listed and
traded on the Exchange will apply to options on Ether ETPs. The
Exchange's existing surveillance and reporting safeguards are designed
to deter and detect possible manipulative behavior which might arise
from listing and trading options on ETFs, including the options on
Ether ETPs. The Exchange believes that its surveillance procedures are
adequate to properly monitor the trading of options on Ether ETPs in
all trading sessions and to deter and detect violations of Exchange
rules. In addition, the Exchange will implement any new surveillance
procedures it deems necessary to effectively monitor the trading of
options on Ether ETPs. Also, the Exchange may obtain trading
information via the Intermarket Surveillance Group (``ISG'') from other
exchanges who are members of the ISG, or from other exchanges with
which the Exchange has entered into a comprehensive surveillance
sharing agreement (``CSSA''). The Exchange will enter into new CSSAs
with other exchanges as necessary to effectively monitor the trading of
options on Ether ETPs. The Exchange represents that these procedures
will be adequate to properly monitor Exchange trading of options on
Ether ETPs and to deter and detect violations of Exchange rules.
Finally, quotation and last sale information for ETFs is available
via the Consolidated Tape Association (``CTA'') high speed line.
Quotation and last sale information for such securities is also
available from the exchange on which such securities are listed.
Quotation and last sale information for options on Ether ETPs will be
available via OPRA and major market data vendors.
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \23\ in general and furthers the
objectives of Section 6(b)(5) of the Act \24\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system.
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\23\ 15 U.S.C. 78f(b).
\24\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes that the proposal to list and
trade options on Ether 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 Ether ETPs
will provide investors with a greater opportunity to realize the
benefits of utilizing options on an ETF based on spot ether, including
cost efficiencies and increased hedging strategies. The Exchange
believes that offering options on a competitively priced ETF based on
spot ether will benefit investors by providing them with an additional,
relatively lower cost risk management tool allowing them to manage,
more easily, their positions, and associated risks, in their portfolios
in connection with exposure to spot ether. Today, the Exchange lists
options on other commodity ETFs structured as a trust, which
essentially offer analogous objectives and benefits to investors, and
for which the Exchange has not identified any issues with the continued
listing and trading of options on those ETFs.
The Exchange also believes the proposal to permit options on Ether
ETPs will remove impediments to and perfect the mechanism of a free and
open market and a national market system, because options on Ether ETPs
will comply with current Exchange rules as discussed herein.
Specifically, options on Ether ETPs must satisfy the initial listing
standards and continued listing standards currently in the Exchange
rules, applicable to options on all ETFs, including options on other
commodity ETFs already deemed appropriate for options trading on the
Exchange pursuant to Rule 915, Commentary .10. Further, Exchange rules
that currently govern the listing and trading of options on ETFs,
including permissible expirations, strike prices, minimum increments,
position and exercise limits, and margin requirements, will govern the
listing and trading of options on Ether ETPs.
The Exchange represents that it has the necessary systems capacity
to support any additional traffic that may be generated by the trading
of options on Ether ETPs. In addition, the Exchange represents that its
existing surveillance procedures are adequate to properly monitor the
trading of options on Ether ETPs in all trading sessions and to deter
and detect violations of Exchange rules. The Exchange further
represents that it will implement new surveillance procedures, as
necessary, to effectively monitor the trading of options on Ether ETPs.
Finally, the Commission has previously approved the listing and
trading of options on other commodity ETFs structured as a trust, such
as SPDR Gold Trust,\25\ the iShares COMEX Gold Trust,\26\ the iShares
Silver Trust,\27\ the ETFS Gold Trust,\28\ and the ETFS Silver
Trust.\29\
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\25\ See Securities Exchange Act Release No. 57897 (May 30,
2008), 73 FR 32061 (June 5, 2008) (SR-Amex-2008-15; SR-CBOE-2005-11;
SR-ISE-2008-12; SR-NYSEArca-2008-52; and SR-Phlx-2008-17) (Order
Granting Approval of a Proposed Rule Change, as Modified, and Notice
of Filing and Order Granting Accelerated Approval of Proposed Rule
Changes, as Modified, Relating to Listing and Trading Options on the
SPDR Gold Trust).
\26\ See Securities Exchange Act Release No. 59055 (December 4,
2008), 73 FR 75148 (December 10, 2008) (SR-Amex-2008-68; SR-BSE-
2008-51; SR-CBOE-2008-72; SR-ISE-2008-58; SR-NYSEArca-2008-66; and
SR-Phlx-2008-58) (Notice of Filing and Order Granting Accelerated
Approval of Proposed Rule Changes Relating to the Listing and
Trading Options on Shares of the iShares COMEX Gold Trust and the
iShares Silver Trust).
\27\ Id.
\28\ See Securities Exchange Act Release No. 61483 (February 3,
2010), 75 FR 6753 (February 10, 2010) (SR-CBOE-2010-007; SR-ISE-
2009-106; SR-NYSEAmex-2009-86; and SR-NYSEArca-2009-110) (Order
Granting Approval of Proposed Rule Changes and Notice of Filing and
Order Granting Accelerated Approval of a Proposed Rule Change
Relating to Listing and Trading Options on the ETFS Gold Trust and
the ETFS Silver Trust).
\29\ Id.
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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.
Intramarket Competition: 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 options on Ether ETPs will be subject to initial listing
standards and continued listing standards the same as other options on
ETFs listed on the Exchange. Further, options on Ether
[[Page 65961]]
ETPs will be subject to Exchange rules that currently govern the
listing and trading of options on ETFs, including permissible
expirations, strike prices, minimum increments, position and exercise
limits, and margin requirements. Moreover, options on Ether ETPs will
be equally available to all market participants who wish to trade such
options. Finally, and as stated above, the Exchange already lists
options on other commodity ETFs structured as a trust.
Intermarket Competition: The Exchange does not believe the proposal
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 permitting options on Ether ETPs to trade on the Exchange may make
the Exchange a more attractive marketplace to market participants, 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 Ether ETPs. 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
options on Ether ETPs 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 spot ether prices and ether-related products and
positions.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to 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 self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove the 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#3e4c4b525b135d5153535b504a4d7e4d5b5d10595148"><span class="__cf_email__" data-cfemail="295b5c454c044a4644444c475d5a695a4c4a074e465f">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2024-45 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-NYSEAMER-2024-45.
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-NYSEAMER-2024-45 and
should be submitted on or before September 3, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-17949 Filed 8-12-24; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on August 13, 2024.
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