Notice2025-19443
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To List and Trade Shares of the GraniteShares 4x Long Russell 1000 Daily ETF and the GraniteShares 4x Short Russell 1000 Daily ETF, Each a Series of GraniteShares ETP Trust (the “Trust”), Under Rule 14.11(f)(4) (“Trust Issued Receipts”)
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
October 3, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 190 (Friday, October 3, 2025)</title>
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[Federal Register Volume 90, Number 190 (Friday, October 3, 2025)]
[Notices]
[Pages 48107-48112]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19443]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104161; File No. SR-CboeBZX-2025-141]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To List and Trade Shares of the
GraniteShares 4x Long Russell 1000 Daily ETF and the GraniteShares 4x
Short Russell 1000 Daily ETF, Each a Series of GraniteShares ETP Trust
(the ``Trust''), Under Rule 14.11(f)(4) (``Trust Issued Receipts'')
September 30, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 30, 2025, Cboe BZX Exchange, Inc. (the ``Exchange''
or ``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. 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\ 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
Cboe BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (``Commission'' or ``SEC'')
a proposed rule change to list and trade shares of the GraniteShares 4x
Long Russell 1000 Daily ETF (``4x Long Fund'') and the GraniteShares 4x
Short Russell 1000 Daily ETF (``4x Short Fund'' together with the 4x
Long Fund, the ``Funds''), each a series of GraniteShares ETP Trust
(the ``Trust''), under Rule 14.11(f)(4) (``Trust Issued Receipts'').
The shares of the Funds are referred to herein as ``Shares.''
The text of the proposed rule change is also available on the
Commission's website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>), the
Exchange's website (<a href="https://www.cboe.com/us/equities/regulation/rule_filings/bzx/">https://www.cboe.com/us/equities/regulation/rule_filings/bzx/</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 list and trade Shares of the Funds under
Rule 14.11(f)(4), which governs the listing and trading of Trust Issued
Receipts \3\ on the Exchange. The Funds seek to provide daily
investment results (before fees and expenses), as further described
below, that correspond to the performance of a benchmark that seeks to
offer either short or long exposure to the benchmark for the Funds,
which is the Russell 1000 Index (the ``Index''). The Index measures the
current performance of the large-cap segment of the U.S. equities
universe. The 4x Long Fund is based on the daily performance of the
Index and the 4x Short Fund is based on the daily inverse (i.e., the
opposite) performance of the Index.
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\3\ Rule 14.11(f)(4) applies to Trust Issued Receipts that
invest in ``Financial Instruments.'' The term ``Financial
Instruments,'' as defined in Rule 14.11(f)(4)(A)(iv), means any
combination of investments, including cash; securities; options on
securities and indices; futures contracts; options on futures
contracts; forward contracts; equity caps, collars and floors; and
swap agreements.
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The Funds have the ability to engage in Over-the-Counter (``OTC'')
swaps referencing the Index (hereinafter referred to as ``Russell Swap
[[Page 48108]]
Agreements''), forward contracts, options contracts, futures contracts
(hereinafter referred to as ``Russell Futures Contracts'') and other
Financial Instruments \4\ based on the Index. The amount of exposure
each Fund has to a specific combination of Financial Instruments
differs with each particular Fund and should be expected to change from
time to time at the discretion of the sponsor of the Trust,
GraniteShares Advisors LLC (the ``Sponsor''), based on market
conditions and other factors.
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\4\ Id.
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The Funds are commodity pools and GraniteShares Advisors LLC, a
Delaware limited liability company, serves as the sponsor of the Trust
(the ``Sponsor''). The Sponsor is a commodity pool operator.\5\ Other
service providers will include an administrator (the
``Administrator''), a custodian and transfer agent. Wilmington Trust,
National Association is the sole trustee of the Trust. The Funds will
not be registered as investment companies under the Investment Company
Act of 1940, as amended, and are not required to register under such
Act.
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\5\ The Funds have filed a draft registration statement on Form
S-1 under the Securities Act of 1933, dated August 8, 2025 (``Draft
Registration Statement''). The description of the Funds and the
Shares contained herein are based on the Draft Registration
Statement. The Funds will not trade on the Exchange until such time
as there is an effective registration statement for the Funds.
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If the Sponsor to the Trust issuing the Trust Issued Receipts is
affiliated with a broker-dealer, such Sponsor to the Trust shall erect
and maintain a ``fire wall'' between the Sponsor and the broker-dealer
with respect to access to information concerning the composition and/or
changes to the Fund's portfolio. The Sponsor is not a broker-dealer or
affiliated with a broker-dealer. In the event that (a) the Sponsor
becomes a broker-dealer or newly affiliated with a broker-dealer, or
(b) any new sponsor is a broker-dealer or becomes affiliated with a
broker-dealer, it will implement and maintain a fire wall with respect
to its relevant personnel or such broker-dealer affiliate, as
applicable, regarding access to information concerning the composition
and/or changes to the portfolio, and will be subject to procedures
designed to prevent the use and dissemination of material non-public
information regarding the portfolio.
The Funds will only enter into Russell Swap Agreements with major
global financial institutions, the selection of which will be subject
to the Sponsor's due diligence and risk management measures in place.
The Funds will seek, where possible, to use counterparties, as
applicable, whose financial status is such that the risk of default is
reduced; however, the risk of losses resulting from default is still
possible. Specifically, the Sponsor will consider the counterparty's
credit quality and financial strength, ability to provide the required
exposure to the Index, and operational capabilities for derivatives
transactions.
In addition to Russell Swap Agreements, the Funds may also obtain
exposure to the Index through listed options contracts traded on Cboe
Exchange, Inc. (``Cboe'') (hereinafter referred to as ``Russell Options
Contracts'').
The Funds may also invest in money market instruments (i.e., ``Cash
and Cash Equivalents'') \6\ not only as part of their core investment
strategy but also to meet collateral and margin requirements for their
Russell Futures Contract positions, Russell Swap Agreements and Russell
Option Contracts (collectively referred to as the ``Russell Derivative
Products'') ensuring operational flexibility and regulatory compliance
in their derivatives-based approach to achieving leveraged exposure to
the Index.
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\6\ For purposes of this proposal, the term ``Cash and Cash
Equivalents'' shall have the definition provided in Exchange Rule
14.11(i)(4)(C)(iii), applicable to Managed Fund Shares.
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If the 4x Long Fund is successful in meeting its objective, its
value (before fees and expenses) on a given day should gain
approximately four times as much on a percentage basis as the level of
the Index when it rises. Conversely, its value (before fees and
expenses) should lose approximately four times as much on a percentage
basis as the level of the Index when it declines. The 4x Long Fund
primarily acquires long exposure to the Index through Financial
Instruments, including swap agreements, futures contracts, forward
contracts, and options contracts that reference the Index, such that
the 4x Long Fund has exposure intended to approximate four times the
daily performance of the Index at the time of the net asset value
(``NAV'') calculation of the 4x Long Fund. In the event that the 4x
Long Fund is unable to meet its investment objective solely through one
type of Financial Instrument, it may invest in other Financial
Instruments referencing the Index, including both cleared and non-
cleared swap agreements with major global financial institutions. The
4x Long Fund may also invest in money market instruments that may serve
as collateral to the 4x Long Fund's investments in Financial
Instruments.
If the 4x Short Fund is successful in meeting its objective, its
value (before fees and expenses) on a given day should gain
approximately four times as much on a percentage basis as the level of
the Index when it declines. Conversely, its value (before fees and
expenses) should lose approximately four times as much on a percentage
basis as the level of the Index when it rises. The 4x Short Fund
primarily acquires short exposure to the Index through Financial
Instruments, including swap agreements, futures contracts, forward
contracts, and options contracts that reference the Index, such that
the 4x Short Fund has exposure intended to approximate negative four
times the daily performance of the Index at the time of the NAV
calculation of the 4x Short Fund. In the event that the 4x Short Fund
is unable to meet its investment objective solely through one type of
Financial Instrument, it may invest in other Financial Instruments
referencing the Index, including both cleared and non-cleared swap
agreements with major global financial institutions. The 4x Short Fund
may also invest in Cash and Cash Equivalents that may serve as
collateral to the 4x Short Fund's investments in Financial Instruments.
The Funds are not actively managed by traditional methods, which
typically involve effecting changes in the composition of a portfolio
on the basis of judgments relating to economic, financial and market
considerations with a view toward obtaining positive results under all
market conditions. Rather, the Funds seek to remain fully invested at
all times in Russell Derivative Products (and Cash and Cash Equivalents
as collateral) that provide exposure to the Index consistent with its
investment objective without regard to market conditions, trends or
direction.
In seeking to achieve the Funds' investment objectives, the Sponsor
uses a mathematical approach to investing. Using this approach, the
Sponsor determines the type, quantity and mix of investment positions
that the Sponsor believes in combination should produce daily returns
consistent with the Funds' objectives. The Sponsor relies upon a pre-
determined model to generate orders that results in repositioning the
Funds' investments in accordance with their investment objectives.
Daily Target
The Funds are daily target funds designed for tactical, short-term
use rather than long-term buy-and-hold strategies due to the
compounding effects inherent in daily rebalancing. The Funds are
``leveraged'', which
[[Page 48109]]
means that each Fund has an investment objective to seek daily
investment results, before fees and expenses, that correspond either to
a multiple (4x) or an inverse multiple (-4x) of the daily performance
of the Index on a given day (the ``Daily Target''). The Funds do not
seek to achieve their Daily Target for any period other than a single
day. For these purposes, a ``day'' is measured from the time a Fund
calculates its NAV to the time of the Fund's next NAV calculation. The
4x Long Fund Daily Target seeks investment results that correspond to
four times the daily performance of the Index. The 4x Short Fund Daily
Target seeks investment results that correspond to negative four times
the daily performance of the Index. The Sponsor uses a mathematical
approach to determine the appropriate mix of Financial Instruments
needed each day to maintain the target exposure. Because the target is
daily, the Funds' performance over periods longer than one day will
differ from 4x or -4x the Index's performance over those same periods
due to the effects of compounding.
Purchases and Redemptions of Creation Units
The Funds will create and redeem Shares from time to time only in
large blocks of a specified number of Shares or multiples thereof
(``Creation Units''). A Creation Unit is a block of at least 10,000
Shares. Except when aggregated in Creation Units, the Shares are not
redeemable securities.
On any Business Day,\7\ an authorized participant may place an
order with the Administrator to create one or more Creation Units.\8\
The total cash payment required to create each Creation Unit is the NAV
of at least 10,000 Shares of each Fund on the purchase order date plus
the applicable transaction fee.
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\7\ A ``Business Day'' means any day other than a day when any
of BZX, Cboe, CFE or other exchange material to the valuation or
operation of the Funds, or the calculation of the Index, options
contracts underlying the Index, or Russell Futures Contracts is
closed for regular trading.
\8\ Authorized participants have a cut-off time to place
creation and redemption orders.
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The procedures by which an authorized participant can redeem one or
more Creation Units mirror the procedures for the purchase of Creation
Units. On any Business Day, an authorized participant may place an
order with the Administrator to redeem one or more Creation Units. The
redemption proceeds from the Funds consist of the cash redemption
amount. The cash redemption amount is equal to the NAV of the number of
Creation Unit(s) of each Fund requested in the authorized participant's
redemption order as of the time of the calculation of a Fund's NAV on
the redemption order date, less transaction fees.
Availability of Information Regarding the Shares
The NAV for each Fund's Shares will be calculated by the
Administrator on each Business Day and will be disseminated daily to
all market participants at the same time.\9\ Pricing information for
the Shares will be available on the Funds' website at
<a href="http://www.GraniteShares.com">www.GraniteShares.com</a>, including: (1) the prior Business Day's reported
NAV, the closing market price or the bid/ask price, daily trading
volume, and a calculation of the premium and discount of the closing
market price or bid/ask price against the NAV; and (2) data in chart
format displaying the frequency distribution of discounts and premiums
of the daily closing price against the NAV, within appropriate ranges,
for each of the four previous calendar quarters.
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\9\ NAV means the total assets of each Fund including, but not
limited to, all Cash and Cash Equivalents or other debt securities
less total liabilities of each Fund, consistently applied under the
accrual method of accounting. Each Fund's NAV is calculated as of
4:00 p.m. ET.
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The closing prices and settlement prices of the Russell Futures
Contracts will also be readily available from the websites of CFE
(<a href="http://www.cfe.cboe.com">http://www.cfe.cboe.com</a>), automated quotation systems, published or
other public sources, or on-line information services such as Bloomberg
or Reuters. Complete real-time data for component Russell Futures
Contracts underlying the Index is available by subscription to Reuters
and Bloomberg. Specifically, the level of the Index will be published
at least every 15 seconds both in real time from 9:30 a.m. to 4:00 p.m.
ET and at the close of trading on each Business Day by Bloomberg and
Reuters. The CFE also provides delayed futures information on current
and past trading sessions and market news free of charge on its
website. The contract specifications of Russell Futures Contracts
underlying the Index are also available on Bloomberg and Reuters.
Quotation information regarding the Shares will be disseminated
through the facilities of the Consolidated Tape Association (``CTA'').
Quotation information regarding Russell Futures Contracts and Russell
Options Contracts will be available from the exchanges on which such
instruments are traded. Quotation information relating to Russell
Options Contracts will also be available via the Options Price
Reporting Authority. Quotation and last-sale information for Russell
Swap Agreements will be available from nationally recognized data
service providers, such as Reuters and Bloomberg, through subscription
agreements, or from a broker-dealer who makes markets in such
instruments. Quotation and last-sale information for Russell Swap
Agreements will be valued on the basis of quotations or equivalent
indication of value supplied by a third-party pricing service or
broker-dealer who makes markets in such instruments. Pricing
information regarding Cash Equivalents in which the Funds will invest
is generally available through nationally recognized data service
providers, such as Reuters and Bloomberg, through subscription
agreements.
In addition, the Funds' website at <a href="http://www.GraniteShares.com">www.GraniteShares.com</a> will
display the end of day closing Index level, and NAV per Share for each
Fund. The Funds will provide website disclosure of portfolio holdings
daily and will include, as applicable, the notional value (in U.S.
dollars) of Russell Derivative Products, and characteristics of such
instruments, as well as Cash and Cash Equivalents held in the portfolio
of each Fund. This website disclosure of the portfolio composition of
each Fund will occur at the same time as the disclosure by each Fund of
the portfolio composition to authorized participants so that all market
participants are provided portfolio composition information at the same
time. The same portfolio information will be provided on the public
website as well as in electronic files provided to authorized
participants.
In addition, in order to provide updated information relating to
the Funds for use by investors and market professionals, an updated
Intraday Indicative Value (``IIV'') will be calculated. The IIV is an
indicator of the value of each Fund's holdings, which will include the
Russell Derivative Products and Cash and Cash Equivalents less
liabilities of each Fund at the time the IIV is disseminated. The IIV
will be calculated and widely disseminated by one or more major market
data vendors every 15 seconds throughout Regular Trading Hours.\10\
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\10\ As defined in Exchange Rule 1.5(w), the term ``Regular
Trading Hours'' means the time between 9:30 a.m. and 4:00 p.m. ET.
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In addition, the IIV will be published on the Exchange's website
and will be available through on-line information services such as
Bloomberg and Reuters.
The IIV disseminated during Regular Trading Hours should not be
viewed as
[[Page 48110]]
an actual real time update of the NAV, which is calculated only once a
day. The IIV also should not be viewed as a precise value of the
Shares.
Additional information regarding the Funds and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings, disclosure policies,
distributions and taxes will be included in the Registration Statement.
Initial and Continued Listing
The Shares of each Fund will conform to the initial and continued
listing criteria under BZX Rule 14.11(f)(4). The Exchange represents
that, for initial and continued listing, the Funds and the Trust must
be in compliance with Rule 10A-3 under the Act. A minimum of 100,000
Shares of each Fund will be outstanding at the commencement of trading
on the Exchange. The Exchange will obtain a representation from the
Sponsor of the Shares that the NAV per Share for each Fund will be
calculated daily and will be made available to all market participants
at the same time.
Trading Halts
With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of each Fund. The Exchange will halt trading in
the Shares under the conditions specified in BZX Rule 11.18. Trading
may be halted because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable. These may
include: (1) the extent to which trading is not occurring in the
securities and/or the financial instruments composing the daily
disclosed portfolio of the Fund; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present.
Trading Rules
The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. The Exchange will
allow trading in the Shares from 8:00 a.m. until 8:00 p.m. ET and has
the appropriate rules to facilitate transactions in the Shares during
all trading sessions. As provided in BZX Rule 11.11(a), the minimum
price variation for quoting and entry of orders in securities traded on
the Exchange is $0.01, with the exception of securities that are priced
less than $1.00, for which the minimum price variation for order entry
is $0.0001.
Surveillance
Trading of the Shares through the Exchange will be subject to the
Exchange's surveillance procedures for derivative products, including
Trust Issued Receipts. All of the Russell Futures Contracts and Russell
Options Contracts held by each Fund will trade on markets that are a
member of the Intermarket Surveillance Group (``ISG'') or affiliated
with a member of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.\11\ The Exchange, FINRA,
on behalf of the Exchange, or both will communicate regarding trading
in the Shares and the underlying listed instruments, including listed
derivatives held by each Fund, with the ISG, other markets or entities
who are members or affiliates of the ISG, or with which the Exchange
has entered into a comprehensive surveillance sharing agreement. In
addition, the Exchange, FINRA on behalf of the Exchange, or both may
obtain information regarding trading in the Shares and the underlying
listed instruments, including listed derivatives, held by the Fund from
markets and other entities that are members of ISG or with which the
Exchange has in place a comprehensive surveillance sharing agreement.
The Exchange also has a general policy prohibiting the distribution of
material, non-public information by its employees. All statements and
representations made in this filing regarding Index composition,
description of the portfolio or reference assets, limitations on
portfolio holdings or reference assets, dissemination and availability
of reference of the Index, reference asset, and the applicability of
Exchange rules specified in this filing shall constitute continued
listing requirements for each Fund. The issuer has represented to the
Exchange that it will advise the Exchange of any failure by either of
the Funds or any of the Shares to comply with the continued listing
requirements, and, pursuant to its obligations under Section 19(g)(1)
of the Act, the Exchange will surveil for compliance with the continued
listing requirements. If either Fund or any of the Shares are not in
compliance with the applicable listing requirements, the Exchange will
commence delisting procedures under Exchange Rule 14.12.
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\11\ For a list of the current members and affiliate members of
ISG, see <a href="http://www.isgportal.com">www.isgportal.com</a>. The Exchange notes that not all
components of each Fund's holdings may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
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Information Circular
Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular will discuss the following: (1) the procedures for creation
and redemption of Shares in Creation Units (and that the Shares are not
individually redeemable): (2) BZX Rule 3.7, which imposes suitability
obligations on Exchange members with respect to recommending
transactions in the Shares to customers; (3) Interpretation and Policy
.01 of BZX Rule 3.7 which imposes a duty of due diligence on its
members to learn the essential facts relating to every customer prior
to trading the Shares; \12\ (4) how information regarding each Fund's
holdings is disseminated; (5) the requirement that members deliver a
prospectus to investors purchasing newly issues Shares prior to or
concurrently with the confirmation of a transaction; and (6) trading
information.
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\12\ Specifically, in part, Interpretation and Policy .01 of
Rule 3.7 states ``[n]o Member shall recommend to a customer a
transaction in any such product unless the Member has a reasonable
basis for believing at the time of making the recommendation that
the customer has such knowledge and experience in financial matters
that he may reasonably be expected to be capable of evaluating the
risks of the recommended transaction and is financially able to bear
the risks of the recommended position.''
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Further, the Exchange notes that FINRA has implemented increased
sales practice and customer margin requirements for FINRA members
applicable to inverse, leveraged and inverse leveraged securities
(which include the Shares) and options on such securities, as described
in FINRA Regulatory Notices 09-31 (June 2009), O9-53 (August 2009), and
06-65 (November 2009) (collectively, ``FINRA Regulatory Notices'').
Members that carry customer accounts will be required to follow the
FINRA guidance set forth in these notices. As noted above, the Funds
will seek daily investment results, before fees and expenses, that
correspond to the Index, which measures daily performance of the Index
and the daily inverse (i.e., the opposite) of the Index. Because the
target is daily, the Funds' performance over periods longer than one
day will differ from 4x or -4x the Index's performance over those same
periods due to the effects of compounding.
In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to each Fund. Members
[[Page 48111]]
purchasing Shares from either Fund for resale to investors will deliver
a prospectus to such investors. The Information Circular will also
discuss any exemptive, no-action and interpretive relief granted by the
Commission from any rules under the Act. In addition, the Information
Circular will also reference that each Fund is subject to various fees
and expenses described in the Funds' registration statement. The
Information Circular will also disclose the trading hours of the Shares
of each Fund and the applicable NAV calculation time for the Shares.
The Information Circular will disclose that information about the
Shares of each Fund will be publicly available on the Funds' website.
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.\13\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \14\ 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) \15\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ Id.
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In particular, the Funds represents an established product
structure rather than a novel regulatory concept. 4X leveraged equity
products currently trade in U.S. markets, including the MAX S&P 500 4X
Leveraged ETN (Ticker: SPYU), demonstrating that this leverage level
applied to broad-based U.S. equity indices has been deemed consistent
with existing regulatory frameworks and investor protection standards.
The regulatory acceptance of similar leveraged products establishes
that 4X leverage on major equity indices does not present unprecedented
risks or regulatory concerns that would warrant different treatment
under the Act.
The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in Exchange Rule 14.11(f). The
Exchange believes that its surveillance procedures are adequate to
properly monitor the trading of the Shares on the Exchange during all
trading sessions and to deter and detect violations of Exchange rules
and applicable federal securities laws. If the Sponsor to the Trust
Issued Receipts is affiliated with a broker-dealer, such Sponsor and
the Trust shall erect and maintain a ``fire wall'' between the Sponsor
and the broker-dealer with respect to access to information concerning
the composition and/or changes to either Fund's portfolio. The Sponsor
is not a broker-dealer or affiliated with a broker-dealer. In the event
that (a) the Sponsor becomes a broker-dealer or newly affiliated with a
broker-dealer, or (b) any new sponsor is a broker-dealer or becomes
affiliated with a broker-dealer, it will implement and maintain a fire
wall with respect to its relevant personnel or such broker-dealer
affiliate, as applicable, regarding access to information concerning
the composition and/or changes to the portfolio, and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding the portfolio. The Exchange, FINRA, on
behalf of the Exchange, or both may obtain information regarding
trading in the Shares and the underlying Russell Futures Contracts and
Russell Options Contracts via the ISG from other exchanges who are
members or affiliates of ISG or with which the Exchange has entered
into a comprehensive surveillance sharing agreement. In addition, the
Exchange also has a general policy prohibiting the distribution of
material, non-public information by its employees.
This proposal is designed to promote just and equitable principles
of trade and to protect investors and the public interest in that the
Exchange will obtain a representation from the issuer of the Shares
that the NAV will be calculated daily and that the NAV and each of the
Fund's holdings will be made available to all market participants at
the same time. In addition, a large amount of information is publicly
available regarding the Funds and the Shares, thereby promoting market
transparency. Moreover, NAV calculation times will be posted on
<a href="http://www.GraniteShares.com">www.GraniteShares.com</a>. If NAV calculation times differ from the
standard schedule (such as when exchanges close early), the updated
timing information will be available on the website. The website for
the Funds will include a form of the prospectus for the Funds and
additional data relating to the NAV and other quantitative information.
Trading in Shares of the Funds will be halted under the conditions
specified in Exchange Rule 11.18. Trading may also be halted because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable. Finally, trading in the Shares
will be subject to Exchange Rule 14.11(f)(4)(C)(ii), which sets forth
circumstances under which Shares of the Funds may be halted.
This proposal is designed to perfect the mechanism of a free and
open market and, in general, to protect investors and the public
interest in that it will facilitate the listing and trading of an
additional exchange-traded product that will enhance competition among
market participants, to the benefit of investors and the marketplace.
As noted above, the Exchange has in place surveillance procedures
relating to trading the Shares and may obtain information via ISG from
other exchanges that are members of ISG or with which the Exchange has
entered into a comprehensive surveillance sharing agreement. For the
above reasons, the Exchange believes that this proposal is consistent
with the requirements of Section 6(b)(5) of the Act.
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. This proposal will
facilitate the listing of an additional exchange-traded product on the
Exchange, which will enhance competition among listing venues, to the
benefit of issuers, investors and the marketplace more broadly. Market
participants on other exchanges are welcome to trade at the Exchange if
they determine that this proposal to list and trade the Shares has made
the Exchange more attractive or favorable.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
[[Page 48112]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
A. by order approve or disapprove such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change 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#b8cacdd4dd95dbd7d5d5ddd6cccbf8cbdddb96dfd7ce"><span class="__cf_email__" data-cfemail="e193948d84cc828e8c8c848f9592a1928482cf868e97">[email protected]</span></a>. Please include
file number SR-CboeBZX-2025-141 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-CboeBZX-2025-141. 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-CboeBZX-2025-141 and should be submitted
on or before October 24, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-19443 Filed 10-2-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on October 3, 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.