Notice2025-14856
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 5.32-O and 5.35-O To Permit Flexible Exchange Options in the iShares Bitcoin Trust ETF
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 6, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 149 (Wednesday, August 6, 2025)</title>
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[Federal Register Volume 90, Number 149 (Wednesday, August 6, 2025)]
[Notices]
[Pages 37900-37904]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14856]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103622; File No. SR-NYSEARCA-2025-55]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rules
5.32-O and 5.35-O To Permit Flexible Exchange Options in the iShares
Bitcoin Trust ETF
August 1, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on July 31, 2025, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') 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 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. 78a.
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rules 5.32-O and 5.35-O to permit
Flexible Exchange (``FLEX'') Options in the iShares Bitcoin Trust ETF.
The proposed rule change is available on the Exchange's website at
<a href="http://www.nyse.com">www.nyse.com</a> and at the principal office of the Exchange.
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 amend Rules 5.32-O (Terms of FLEX Options)
and 5.35-O (Position Limits for FLEX Options) to permit iShares Bitcoin
Trust ETF (``IBIT'') options to trade as FLEX Equity Options with an
aggregated position and exercise limit for IBIT options of 25,000-
contracts (``FLEX IBIT options'').\3\ The Exchange notes that this
[[Page 37901]]
is a competitive filing as the Commission recently approved a
substantially identical rule proposal by Nasdaq Phlx, LLC
(``Phlx'').\4\
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\3\ FLEX Options are customized equity or index contracts that
allow investors to tailor contract terms for exchange-listed equity
and index options. See generally Section 15 (Flexible Exchange
(``FLEX'') Options). A ``FLEX Equity Option'' is an option on a
specified underlying equity security that is subject to the rules of
Section 15. See Rule 900G(b)(10).
\4\ See Securities Exchange Act Release No. 103565 (July 29,
2025), 90 FR__ (August __, 2025) (SR-PHLX-2024-72) (Order Approving
a Proposed Rule Change to Permit the Trading of FLEX Options on
Shares of the iShares Bitcoin Trust ETF) (``Phlx FLEX IBIT Approval
Order'').
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IBIT is an Exchange-Traded Fund (``ETF'') that holds bitcoin and is
listed on The Nasdaq Stock Market LLC (``Nasdaq'').\5\ On September 20,
2024, Nasdaq ISE, LLC (``ISE'') received approval to list options on
IBIT.\6\ On November 22, 2024, the Exchange began listing and trading
IBIT options.\7\ The position and exercise limits for IBIT options are
25,000 contracts as set forth in Rule 6.8-O, Commentary .06(f), the
lowest limit available in options.\8\
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\5\ Nasdaq received approval to list and trade Bitcoin-Based
Commodity-Based Trust Shares in IBIT pursuant to Rule 5711(d) of
Nasdaq. See Securities Exchange Act Release No. 99306 (January 10,
2024), 89 FR 3008 (January 17, 2024) (SR-NASDAQ-2023-016) (Order
Granting Accelerated Approval of Proposed Rule Changes, as Modified
by Amendments Thereto, To List and Trade Bitcoin-Based Commodity-
Based Trust Shares and Trust Units).
\6\ See Securities Exchange Act Release No. 101128 (September
20, 2024), 89 FR 78942 (September 26, 2024) (SR-ISE-2024-03) (Notice
of Filing of Amendment Nos. 4 and 5 and Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1,
4, and 5, To Permit the Listing and Trading of Options on the
iShares Bitcoin Trust) (``IBIT Approval Order'').
\7\ See Trader Update, dated Nov. 21, 2024, NYSE Options:
Trading in Options on Bitcoin Exchange Traded Products, available
here: <a href="https://www.nyse.com/trader-update/history#110000945911">https://www.nyse.com/trader-update/history#110000945911</a>.
\8\ The exercise limit for options on IBIT is the same as the
position limit for IBIT as determined by Rule 6.8-O. See Rule 6.9-O,
Commentary .01 (providing that exercise limits will be ``equivalent
to the corresponding position limit for the same particular class of
options as determined by Rule 6.8-O and Commentary thereto'').
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FLEX Equity Options are not generally subject to position or
exercise limits.\9\ Today, pursuant to Rule 5.32-O(f)(1), IBIT options
are not approved for FLEX trading.\10\ Therefore, the 25,000-contract
limit applicable to IBIT options currently applies solely to non-FLEX
IBIT options.
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\9\ See Rule 906G(b) (subject to the exceptions enumerated in
the rule ``there shall be no position limits for FLEX Equity
options.'').
\10\ The Exchange recently received approval to trade FLEX
Equity Options on certain exchange-traded products that--like IBIT--
hold bitcoin, thus removing these products from the prohibition set
forth in Rule 5.32-O(f)(1). See Securities Exchange Act Release No.
103566 (July 29, 2025), 90 FR __ (August __, 2025) (SR-NYSEAMER-
2024-78) (Order Approving a Proposed Rule Change, as Modified by
Amendment No. 1, to Permit the Trading of FLEX Options on Shares of
the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust ETF,
and the Bitwise Bitcoin ETF).
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The Exchange proposes to permit options on IBIT to trade as FLEX
Equity Options and would require the aggregation of any FLEX and non-
FLEX positions in IBIT for purposes of calculating the 25,000-contract
position and exercise limits.\11\
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\11\ See proposed Rules 5.32-O(f)(1) (excluding IBIT options
from the prohibition against FLEX trading); and 5.35-O(b)(iii)
(specifying that the Exchange will aggregate any FLEX and non-FLEX
IBIT option positions for purposes of calculating the position and
exercise limits for IBIT, as set forth in Rules 6.8-O and 6.9-O).
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Per the Commission ``rules regarding position and exercise limits
are intended to prevent the establishment of options positions that can
be used or might create incentives to manipulate or disrupt the
underlying market so as to benefit the options positions.'' \12\ For
this reason, the Commission requires that ``position and exercise
limits must be sufficient to prevent investors from disrupting the
market for the underlying security by acquiring and exercising a number
of options contracts disproportionate to the deliverable supply and
average trading volume of the underlying security.'' \13\ Based on its
review and analysis of IBIT data, the Commission concluded that the
25,000-contract position (and exercise) limit for non-FLEX IBIT options
satisfied these objectives.\14\
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\12\ See supra note 7, IBIT Approval Order, 89 FR 78946.
\13\ See id.
\14\ See id.
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As proposed, the Exchange will aggregate position (and exercise)
limits for all IBIT options, thus limiting positions for options on all
IBIT options--FLEX and non-FLEX--to 25,000 contracts. This proposed
aggregated limit effectively restricts a market participant from
holding positions that could result in the receipt of more than
2,500,000 shares, aggregated for FLEX IBIT and non-FLEX IBIT options
(if that market participant exercised all its options). The Exchange
believes that capping the aggregated position and exercise limits at
25,000 contracts, the lowest available limit, would be sufficient to
address concerns related to manipulation and the protection of
investors. The Exchange notes that this number is conservative and
therefore appropriate given the liquidity of IBIT.\15\
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\15\ See id.
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While the Exchange proposes an aggregated 25,000-contract position
and exercise limit for FLEX and non-FLEX IBIT options, it nonetheless
believes that evidence exists to support a much higher position
limit.\16\ In fact, the Commission recently approved a proposal by
Nasdaq ISE, LLC (``ISE'') to remove 25,000-contract position and
exercise limit on IBIT options and to instead allow IBIT options to
qualify for increased limits (up to 250,000 contracts) pursuant to the
generic limits for options.\17\
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\16\ See Phlx FLEX IBIT Approval Order, n. 21 (noting that, in
the IBIT Approval Order, ``the Commission stated that it considered
and reviewed the ISE's analysis that the exercisable risk associated
with a position limit of 25,000 contracts represented only 0.4% of
the outstanding shares of IBIT. The Commission stated that it also
considered and reviewed the ISE's statement that with a position
limit of 25,000 contracts on the same side of the market and
611,040,00 shares of IBIT outstanding, 244 market participants would
have to simultaneously exercise their positions to place IBIT under
stress).
\17\ See Securities Exchange Act Release No. 103564 (July 29,
2025), 90 FR __(August __, 2025) (SR-ISE-2024-62) (Order Approving a
Proposed Rule Change, as Modified by Amendment Nos. 2 and 3,
Regarding Position and Exercise Limits for Options on the iShares
Bitcoin Trust ETF).
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Despite the proposed addition of FLEX trading in IBIT options, the
Exchange would continue to limit to 25,000 the number of IBIT options
traded on the Exchange that an investor, acting alone or in concert
with others directly or indirectly, may control and thereby mitigate
potential manipulation. The Exchange believes that allowing FLEX IBIT
options it consistent with the Act given FLEX trading is permitted
today in other ETFs overlying a commodity such as SPDR Gold Shares
(``GLD'') and iShares Silver Trust (``SLV'').\18\
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\18\ GLD and SLV, like IBIT, each hold one asset in trust.
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Further, the Exchange believes that the share creation and
redemption process unique to ETFs would mitigate any potential risk of
manipulation in FLEX IBIT options. The creation and redemption process
is designed to ensure that an ETF's price closely tracks the value of
its underlying asset(s). For example, if a market participant exercised
a long call position for 25,000 contracts and purchased 2,500,000
shares of IBIT and this purchase resulted in the value of IBIT shares
to trade at a premium to the value of the (underlying) bitcoin held by
IBIT, the Exchange believes that other market participants would
attempt to arbitrage this price difference by selling short IBIT shares
while concurrently purchasing bitcoin. Those market participants
(arbitrageurs) would then deliver cash to IBIT and receive shares of
IBIT, which would be used to close out any previously established short
position in IBIT. Thus, this creation and redemptions process would
significantly reduce the potential risk of
[[Page 37902]]
price dislocation between the value of shares in IBIT and the value of
bitcoin holdings.
The Exchange understands that FLEX Equity Options on ETFs are
currently traded in the over-the-counter (``OTC'') market by a variety
of market participants, e.g., hedge funds, proprietary trading firms,
and pension funds, to name a few. The Exchange believes there is room
for significant growth if a comparable product were introduced for
trading on a regulated market. The Exchange expects that users of these
OTC products would be among the primary users of FLEX IBIT options. The
Exchange also believes that the trading of FLEX IBIT options would
allow these same market participants to better manage the risk
associated with the volatility of IBIT (the underlying ETF) given the
enhanced liquidity that an exchange-traded product would bring.
Additionally, the Exchange believes that FLEX IBIT options traded
on the Exchange would have three important advantages over the
contracts that are traded in the OTC market. First, as a result of
greater standardization of contract terms, exchange-traded contracts
should develop more liquidity. Second, counter-party credit risk would
be mitigated by the fact that the contracts are issued and guaranteed
by The Options Clearing Corporation (``OCC''). Finally, the price
discovery and dissemination provided by the Exchange and its members
would lead to more transparent markets. The Exchange believes that its
ability to offer FLEX IBIT options would aid it in competing with the
OTC market and at the same time expand the universe of products
available to interested market participants. The Exchange believes that
an exchange-traded alternative may provide a useful risk management and
trading vehicle for market participants and their customers.
The Exchange has 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 FLEX IBIT options. The Exchange believes any additional
traffic that would be generated from the trading of FLEX IBIT options
would be manageable. The Exchange believes OTP Holders and OTP Firms
will not have a capacity issue as a result of this proposed rule
change. The Exchange also represents that it does not believe this
proposed rule change will cause fragmentation of liquidity. The
Exchange will monitor the trading volume associated with the additional
options series listed as a result of this proposed rule change and the
effect (if any) of these additional series on market fragmentation and
on the capacity of the Exchange's automated systems.
The Exchange represents that the same surveillance procedures
applicable to the Exchange's other options products listed and traded
on the Exchange, including non-FLEX IBIT options, will apply to FLEX
IBIT options, and that it has the necessary systems capacity to support
such options. FLEX options products (and their respective symbols) are
integrated into the Exchange's existing surveillance system
architecture and are thus subject to the relevant surveillance
processes. The Exchange's market surveillance staff (including staff of
the Financial Industry Regulatory Authority (``FINRA'') who perform
surveillance and investigative work on behalf of the Exchange pursuant
a regulatory services agreement) conducts surveillances with respect to
IBIT (the underlying ETFs) and, as appropriate, would review activity
in applicable ETF when conducting surveillances for market abuse or
manipulation in the FLEX IBIT options. The Exchange does not believe
that allowing FLEX IBIT options would render the marketplace for non-
FLEX IBIT options, or equity options in general, more susceptible to
manipulative practices.
The Exchange represents that its existing trading surveillances are
adequate to monitor the trading in IBIT, as well as any subsequent
trading of FLEX IBIT options on the Exchange. Additionally, the
Exchange is a member of the Intermarket Surveillance Group (``ISG'')
under the ISG Agreement. ISG members work together to coordinate
surveillance and investigative information sharing in the stock,
options, and futures markets. For surveillance purposes, the Exchange
would therefore have access to information regarding trading activity
in IBIT and in other pertinent underlying securities on other exchanges
through ISG. In addition, and as referenced above, the Exchange has a
regulatory services agreement with FINRA, pursuant to which FINRA
conducts certain surveillances on behalf of the Exchange. Further,
pursuant to a multi-party 17d-2 joint plan, all options exchanges
allocate regulatory responsibilities to FINRA to conduct certain
options-related market surveillances.\19\ The Exchange will implement
any additional surveillance procedures it deems necessary to
effectively monitor the trading of FLEX IBIT options.
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\19\ Section 19(g)(1) of the Act, among other things, requires
every SRO registered as a national securities exchange or national
securities association to comply with the Act, the rules and
regulations thereunder, and the SRO's own rules, and, absent
reasonable justification or excuse, enforce compliance by its
members and persons associated with its members. See 15 U.S.C.
78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows
the Commission to relieve an SRO of certain responsibilities with
respect to members of the SRO who are also members of another SRO.
Specifically, Section 17(d)(1) allows the Commission to relieve an
SRO of its responsibilities to: (i) receive regulatory reports from
such members; (ii) examine such members for compliance with the Act
and the rules and regulations thereunder, and the rules of the SRO;
or (iii) carry out other specified regulatory responsibilities with
respect to such members.
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The proposed rule change is designed to allow investors seeking to
trade IBIT options to utilize FLEX IBIT options. The Exchange believes
that offering innovative products flows to the benefit of the investing
public. A robust and competitive market requires that exchanges respond
to members' evolving needs by constantly improving their offerings.
Such efforts would be stymied if exchanges were prohibited from
offering innovative products such as the proposed FLEX IBIT options.
The Exchange believes that introducing FLEX IBIT options would further
broaden the base of investors that use FLEX Equity Options (and options
on IBIT in general) to manage their trading and investment risk,
including investors that currently trade in the OTC market for
customized options. The proposed rule change is also designed to
encourage market makers to shift liquidity from the OTC market on the
Exchange, which, it believes, will enhance the process of price
discovery conducted on the Exchange through increased order flow.
As discussed herein, the Exchange does not believe that this
proposed rule change raises any unique regulatory concerns because the
proposal to aggregate FLEX and non-FLEX IBIT option positions at the
(most conservative) 25,000-contract position and exercise limit, which
currently applies solely to non-FLEX IBIT options, should provide an
adequate safeguard.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\20\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\21\
in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and
[[Page 37903]]
equitable principles of trade, 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. Specifically,
the Exchange believes that introducing FLEX IBIT Options will increase
order flow to the Exchange, increase the variety of options products
available for trading, and provide a valuable tool for investors to
manage risk. The proposed rule change is designed to allow investors
seeking to trade IBIT options to utilize FLEX IBIT options.
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\20\ 15 U.S.C. 78f(b).
\21\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposal to permit FLEX IBIT options
would remove impediments to and perfect the mechanism of a free and
open market. The Exchange believes that offering FLEX IBIT options will
benefit investors by providing them with an additional, relatively
lower cost investing tool to gain exposure to the price of bitcoin and
provide a hedging vehicle to meet their investment needs in connection
with a bitcoin-related product. Moreover, the proposal would broaden
the base of investors that use FLEX Options to manage their trading and
investment risk, including investors that currently trade in the OTC
market for customized options. By trading a product in an exchange-
traded environment (that is currently being used in the OTC market),
the Exchange would be able to compete more effectively with the OTC
market. The Exchange believes the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that it would
lead to the migration of options currently trading in the OTC market to
trading to the Exchange. Also, any migration to the Exchange from the
OTC market would result in increased market transparency and enhance
the process of price discovery conducted on the Exchange through
increased order flow. The Exchange also believes that offering FLEX
IBIT options may appeal to retail investors interested in options
trading (both FLEX and non-FLEX) on IBIT.
Additionally, the Exchange believes the proposed rule change is
designed to remove impediments to and to perfect the mechanism for a
free and open market and a national market system, and, in general, to
protect investors and the public interest in that it should create
greater trading and hedging opportunities and flexibility. The proposed
rule change should also result in enhanced efficiency in initiating and
closing out positions and heightened contra-party creditworthiness due
to the role of OCC as issuer and guarantor of FLEX IBIT options.
Further, the proposed rule change would result in increased competition
by permitting the Exchange to offer products that are currently used in
the OTC market.
The Exchange does not believe that this proposed rule change raises
any unique regulatory concerns because the proposal to aggregate any
FLEX and non-FLEX IBIT options at the current (and most conservative)
25,000-contract limit should provide an adequate safeguard. As noted
herein, the purpose of position (and exercise) limits is to address
potential manipulative schemes and adverse market impacts surrounding
the use of options, such as disrupting the market in the security
underlying the options. The Exchange believes the proposal will benefit
investors and public interest because the aggregated position and
exercise limits for (FLEX and non-FLEX) IBIT options at 25,000
contracts, the lowest limit available in options, would address
concerns related to manipulation and protection of investors as this
number is conservative and therefore appropriate given the sufficient
liquidity in IBIT.
The Exchange believes that offering innovative products benefits
the investing public. A robust and competitive market requires that
exchanges respond to the evolving needs of their members by constantly
improving their offerings. Such efforts would be stymied if exchanges
were prohibited from offering innovative products such as the proposed
FLEX IBIT options. The Exchange does not believe that allowing FLEX
IBIT options would render the marketplace for equity options more
susceptible to manipulative practices.
Finally, the Exchange represents that it has an adequate
surveillance program in place to detect manipulative trading in FLEX
IBIT options. Regarding the proposed FLEX IBIT options, the Exchange
would use the same surveillance procedures utilized for FLEX Options
currently listed on the Exchange (as well as for non-FLEX IBIT
options). For surveillance purposes, the Exchange would have access to
information regarding trading activity in IBIT (the underlying ETF). In
light of surveillance measures related to both IBIT options and IBIT
(the underlying ETF), the Exchange believes that existing surveillance
procedures are designed to deter and detect possible manipulative
behavior which might potentially arise from listing and trading the
proposed FLEX IBIT options.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
Intra-market competition. The Exchange does not believe that its
proposed rule change will impose any burden on intra-market competition
as all market participants would have the option of utilizing the FLEX
IBIT options. The proposed rule change is designed to allow investors
seeking option exposure to bitcoin to trade FLEX IBIT options.
Moreover, the Exchange believes that the proposal to permit FLEX IBIT
options would broaden the base of investors that use FLEX Options to
manage their trading and investment risk, including investors that
currently trade in the OTC market for customized options.
Inter-market competition. The Exchange does not believe that its
proposed rule change will impose any burden on inter-market competition
as all market participants would have the option of utilizing the FLEX
IBIT options. As noted herein, this proposal is competitive and would
allow the Exchange to compete with competing options exchanges already
authorized to trade FLEX IBIT options. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily direct order flow to competing venues. The proposed rule
change would support that intermarket competition by allowing the
Exchange to offer additional functionality to OTP Holders and OTP
Firms. The Exchange believes that the proposed FLEX IBIT options will
increase the variety of options products available for trading in
general and bitcoin-related products in particular and, as such, will
provide a valuable tool for investors to manage risk.
As such, the Exchange believes that this proposal does not create
an undue burden on intermarket competition. Rather, the Exchange
believes that the proposed rule would bolster intermarket competition
by promoting fair competition among individual markets.
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.
[[Page 37904]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \22\ and Rule 19b-4(f)(6) thereunder.\23\
Because the foregoing proposed rule change does not: (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, it has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act \24\ and subparagraph (f)(6) of
Rule 19b-4 thereunder.\25\
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\22\ 15 U.S.C. 78s(b)(3)(A)(iii).
\23\ 17 CFR 240.19b-4(f)(6).
\24\ 15 U.S.C. 78s(b)(3)(A)(iii).
\25\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied the pre-filing requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \26\ under the
Act does not normally become operative prior to 30 days after the date
of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\27\ the
Commission may designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposal may become operative immediately upon filing. The
Commission previously approved the trading of FLEX Equity Options on
the iShares Bitcoin Trust ETF.\28\ The Exchange proposes to permit
options on IBIT to trade as FLEX Equity Options and would require the
aggregation of any FLEX and non-FLEX positions in IBIT for purposes of
calculating 25,000-contract position and exercise limits. The Exchange
further represents that the same surveillance procedures applicable to
the Exchange's other options products listed and traded on the
Exchange, including non-FLEX IBIT options, will apply to FLEX IBIT
options, and that it has the necessary systems capacity to support such
options. The Commission believes that waiver of the operative delay
could benefit investors by providing an additional venue for trading
FLEX Equity Options on the iShares Bitcoin Trust ETF. Therefore, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposed rule change as operative upon filing.\29\
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\26\ 17 CFR 240.19b-4(f)(6).
\27\ 17 CFR 240.19b-4(f)(6)(iii).
\28\ See Securities Exchange Act Release No. 103565 (July 29,
2025) (Order Approving a Proposed Rule Change to Permit the Trading
of FLEX Options on Shares of the iShares Bitcoin Trust ETF) (SR-
PHLX-2024-72).
\29\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 necessary or
appropriate in the public interest, for the protection of investors, or
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#740601181159171b1919111a0007340711175a131b02"><span class="__cf_email__" data-cfemail="7103041d145c121e1c1c141f0502310214125f161e07">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2025-55 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-NYSEARCA-2025-55. 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 filing 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-NYSEARCA-2025-55 and
should be submitted on or before August 27, 2025.
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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Vanessa A. Countryman,
Secretary.
[FR Doc. 2025-14856 Filed 8-5-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on August 6, 2025.
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