Federal & State Lawfederalstatelaw.com
Home/Federal/Federal Register/2025-15524
Notice2025-15524

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Position Limits and FLEX Trading for Options on the VanEck Bitcoin 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 15, 2025

Issuing agencies

Securities and Exchange Commission

Full Text

<html>
<head>
<title>Federal Register, Volume 90 Issue 156 (Friday, August 15, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 156 (Friday, August 15, 2025)]
[Notices]
[Pages 39459-39461]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15524]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103691; File No. SR-PHLX-2025-36]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Position 
Limits and FLEX Trading for Options on the VanEck Bitcoin ETF

August 12, 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 August 7, 2025, Nasdaq PHLX LLC (``Phlx'' or ``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 Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Options 9, Section 13, Position 
Limits, and Options 8, Section 34, FLEX Index, Equity, and Currency 
Options, related to the listing of options on the VanEck Bitcoin ETF.
    The text of the proposed rule change is available on the Exchange's 
website at <a href="https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings">https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings</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 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 to amend Options 9, Section 13, Position 
Limits, and Options 8, Section 34, FLEX Index, Equity, and Currency 
Options, related to the listing and trading of options on the VanEck 
Bitcoin ETF.
Options 9, Section 13
    Recently, Cboe Exchange, Inc. (``Cboe'') received approval to list 
and trade options on the VanEck Bitcoin ETF.\3\ Thereafter, Nasdaq ISE, 
LLC filed a rule proposal to list and trade options on shares on an 
Exchange-Traded Fund or ``ETF'' that represent units of interest in the 
VanEck Bitcoin ETF.\4\ Phlx's Options 4 Rules were amended by the ISE 
rule change as those Rules are incorporated by reference to ISE's 
Options 4 Rules, so Phlx has the ability to list the options on the 
VanEck Bitcoin ETF. The Cboe VanEck Filing stated that the position and 
exercise limits for options on the VanEck Bitcoin ETF shall be 25,000 
contracts. At this time, the Exchange proposes to amend Phlx Option 9, 
Section 13 to similarly note that options on the VanEck Bitcoin ETF 
shall have a position limit of 25,000 contracts to mirror the Cboe 
VanEck Filing. Phlx Options 9, Section 15(a) provides that the exercise 
limits shall be determined in the manner described in Options 9, 
Section 13, therefore the exercise limits would also be 25,000 
contracts for options on the VanEck Bitcoin ETF.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 103569 (July 29, 
2025) (SR-Cboe-2025-017) (not yet noticed) (``Cboe VanEck Filing'').
    \4\ See SR-ISE-2025-23.
---------------------------------------------------------------------------

Options 8, Section 34
    Today, all options series listed on Phlx may trade as a FLEX option 
on Phlx's trading floor. At this time, the Exchange proposes to note 
within Options 8, Section 34(a) that it will not authorize for trading 
a FLEX option on the VanEck Bitcoin ETF. The Exchange proposes this 
amendment in light of the position and exercise limits of 25,000 
contracts that were set for options on the VanEck Bitcoin ETF in the 
Cboe VanEck Filing and the restriction on FLEX trading for options on 
the VanEck Bitcoin ETF. If the Exchange were to permit trading in a 
FLEX option for the VanEck Bitcoin ETF, it would establish different 
position and exercise limits than those set forth in the Cboe VanEck 
Filing.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\6\ in particular, in that it is designed to promote 
just and 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange's proposal to amend Options 9, Section 13, Position 
Limits, to provide that the position and exercise limits for options on 
the VanEck Bitcoin ETF shall be 25,000 contracts is consistent with the 
Act as it will conform Phlx's options position and exercise limits with 
ISE's options position and exercise limits for the

[[Page 39460]]

VanEck Bitcoin ETF in order that there would be the same position and 
exercise limits on Phlx and ISE.\7\ Phlx Options 9, Section 15(a) 
provides that the exercise limits shall be determined in the manner 
described in Options 9, Section 13, therefore the exercise limits would 
also be 25,000 contracts and also consistent with ISE's options 
position and exercise limits for options on the VanEck Bitcoin ETF.
---------------------------------------------------------------------------

    \7\ The Exchange believes that other exchanges will adopt 
position and exercise limits of 25,000 contracts for options on the 
VanEck Bitcoin ETF. All Nasdaq affiliated markets are filing to 
adopt a 25,000 contract position and exercise limit for options on 
the VanEck Bitcoin ETF.
---------------------------------------------------------------------------

    The Exchange's proposal to amend Options 8, Section 34 to note that 
it will not authorize for trading a FLEX option on the VanEck Bitcoin 
ETF is consistent with the Cboe VanEck Filing which set the position 
and exercise limit of 25,000 contracts for options on the VanEck 
Bitcoin ETF and restricted FLEX trading for options on the VanEck 
Bitcoin ETF. The proposal will protect investors and the general public 
because without this prohibition, trading a FLEX option on the VanEck 
Bitcoin ETF would otherwise establish different position and exercise 
limits than those set by the Cboe VanEck Filing.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.
    Amending Options 9, Section 13 to provide that the position and 
exercise limits for options on the VanEck Bitcoin ETF shall be 25,000 
contracts does not impose an undue burden on competition as the 
position and exercise limits will apply to all trading for options on 
the VanEck Bitcoin ETF on the Exchange as well as those trading on 
other exchanges that file a similar proposal.\8\
---------------------------------------------------------------------------

    \8\ All Nasdaq affiliated markets are filing to adopt a 25,000 
contract position and exercise limit for options on the VanEck 
Bitcoin ETF.
---------------------------------------------------------------------------

    The Exchange's proposal to note that it will not authorize for 
trading a FLEX option on the VanEck Bitcoin ETF does not impose an 
undue burden on competition as no Phlx member will be able to transact 
a FLEX option on the VanEck Bitcoin ETF.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    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 \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 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 this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ 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),\12\ 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 listing of options on shares of the 
VanEck Bitcoin ETF.\13\ As noted above, the Exchange's Options 4 Rules 
were amended by an ISE rule change \14\ as those Rules are incorporated 
by reference to ISE's Options 4 Rules, so the Exchange has the ability 
to list the options on shares of the VanEck Bitcoin ETF. This proposal 
establishes position and exercise limits for options on shares of the 
VanEck Bitcoin ETF and restricts the options from FLEX trading. The 
Commission believes that waiver of the operative delay could benefit 
investors by assuring that trading in VanEck Bitcoin ETF options are 
subject to the same position and exercise limits, as well as FLEX 
trading restrictions, in place on other exchanges. 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.\15\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See supra note 3.
    \14\ See supra note 4.
    \15\ 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).
---------------------------------------------------------------------------

    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#fd8f889198d09e9290909893898ebd8e989ed39a928b"><span class="__cf_email__" data-cfemail="ddafa8b1b8f0beb2b0b0b8b3a9ae9daeb8bef3bab2ab">[email&#160;protected]</span></a>. Please include 
file number SR-PHLX-2025-36 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-PHLX-2025-36. 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-PHLX-2025-36 and 
should be submitted on or before September 5, 2025.


[[Page 39461]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-15524 Filed 8-14-25; 8:45 am]
BILLING CODE 8011-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>
View on FederalRegister.gov →Plain-text source
Indexed from Federal Register on August 15, 2025.

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.