Notice2025-05446
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Certain Administrative Changes Regarding SPESG, SPEQF, and SPEQX Options
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
March 31, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 60 (Monday, March 31, 2025)</title>
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[Federal Register Volume 90, Number 60 (Monday, March 31, 2025)]
[Notices]
[Pages 14283-14284]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05446]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102721; File No. SR-CBOE-2025-019]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make
Certain Administrative Changes Regarding SPESG, SPEQF, and SPEQX
Options
March 25, 2025.
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 March 14, 2025, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 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 (1) to make certain changes regarding the
renaming of the S&P 500 ESG Index to the S&P 500 Scored & Screened
Index and (2) to update certain rules to add the S&P 500 Equal Weight
Index (based on both the full value and one-tenth the value of the
index) (``SPEQF options'' and ``SPEQX options,'' respectively), which
are eligible to be listed for trading pursuant to Rule 4.13(f) and Rule
19b-4(e) under the Securities Exchange Act (the ``Act'') \4\ to those
rules.
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\4\ See 17 CFR 240.19b-4(e).
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The text of the proposed rule change is 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 Exchange proposes (1) to make certain changes regarding the
renaming of the S&P 500 ESG Index to the S&P 500 Scored & Screened
Index and (2) to update certain rules to add the S&P 500 Equal Weight
Index (based on both the full value and one-tenth the value of the
index), options on which are eligible to be listed for trading pursuant
to Rule 4.13(f) and Rule 19b-4(e) under the Act, to those rules.
First, the proposed rule change amends Rules 4.12(c), 4.13(a)(2),
(3), and (4), 5.1(b)(2)(A), and 5.50(g) to amend the name of the S&P
500 ESG Index, which S&P Dow Jones Indices (the reporting authority for
that index) recently renamed as the S&P 500 Scored and Screened Index.
These proposed changes are administrative and have no impact on how
SPESG options trade on the Exchange.
Second, the proposed rule change amends various rules to add the
S&P 500 Equal Weight Index (based on both the full value and one-tenth
the value of the index) to those rules. The S&P 500 Equal Weight Index
is a broad-based index (as defined in Rule 4.11) that satisfies the
initial listing criteria of a broad-based index set forth in Rule
4.10(f). Therefore, in accordance with Rule 4.10(f) and Rule 19b-4(e)
under the Act, options on the S&P 500 Equal Weight Index (both full and
reduced value) are eligible for trading on the Exchange without a rule
filing.\5\ The proposed rule change makes the following administrative
changes in connection with the eligibility of SPEQF and SPEQX options
for trading on the Exchange:
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\5\ On March 13, 2025, the Exchange submitted Forms 19b-4(e) to
the Commission regarding the listing of options on the full value
version of the S&P 500 Equal Weight Index (``SPEQF options'') and
the reduced value version of the S&P 500 Equal Weight Index (``SPEQX
options'').
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<bullet> add the reporting authority (S&P Dow Jones Indices) for
the S&P 500 Equal Weight Index (both full and reduced value) to Rule
4.12(c);
<bullet> add S&P 500 Equal Weight Index (both full and reduced
value) to the list of index options that will be European-style index
in Rule 4.13((a)(3);
<bullet> add S&P 500 Equal Weight Index (both full and reduced
value) to the list of index options that will be a.m.-settled in Rule
4.13(a)(4); and
<bullet> amend Rule 4.13, Interpretation and Policy .06 to state
that the current index value of SPEQX options will be \1/10\th the
value of the S&P 500 Equal Weight Index as reported by the reporting
authority.
These proposed changes are administrative and have no impact on how
SPEQF or SPEQX options may trade on the Exchange.
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.\6\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \7\ 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) \8\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
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In particular, the Exchange believes the proposed rule change will
remove impediments to and perfect the mechanism of a free and open
market and a national market system, because it will add transparency
to the rules regarding certain indexes on which the Exchange may list
options for trading. The proposed rule change to update the name of the
S&P 500 Scored and Screened Index from S&P 500 ESG
[[Page 14284]]
Index will add transparency to the rules, as it will eliminate any
potential confusion that may result from having an old name of an index
in the Rules. This proposed rule change is administrative only and in
response to the reporting authority's decision to update the name of
the index. This has no impact on how options overlying that index may
trade on the Exchange. The proposed rule changes to add the S&P 500
Equal Weight Index (full and reduced value) to certain Rules will
further add transparency to the rules regarding an index on which the
Exchange may list options in accordance with Rule 19b-4(e) under the
Exchange Act and regarding certain terms (e.g., type, settlement) of
the options on those indexes. This transparency ultimately benefits
investors.
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 proposed rule change to
update the name of the S&P 500 Scored and Screened Index from the S&P
500 ESG Index will impose no burden on intramarket or intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act, as it is solely an administrative change that has
no impact on how options overlying that index may trade on the
Exchange. The proposed rule changes to update certain rules to add the
S&P 500 Equal Weight Index (based on both the full value and one-tenth
the value of the index), options on which are eligible to be listed for
trading pursuant to Rule 4.13(f) and Rule 19b-4(e) under the Act, to
those rules will similarly impose no burden on intramarket or
intermarket competition that is not necessary or appropriate in
furtherance of the purpose of the Act, as there are solely
administrative changes that have no impact on how options overlying
those indexes may trade on the Exchange.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\9\
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="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#b0c2c5dcd59dd3dfddddd5dec4c3f0c3d5d39ed7dfc6"><span class="__cf_email__" data-cfemail="1163647d743c727e7c7c747f6562516274723f767e67">[email protected]</span></a>. Please include
file number SR-CBOE-2025-019 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-2025-019. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-CBOE-2025-019 and should be
submitted on or before April 21, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-05446 Filed 3-28-25; 8:45 am]
BILLING CODE 8011-01-P
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