Notice2025-23820
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove 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 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
December 29, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
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[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Notices]
[Pages 60765-60766]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23820]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104476; File No. SR-CboeBZX-2025-141]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove 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 Under Rule 14.11(f)(4) (Trust Issued Receipts)
December 19, 2025.
On September 30, 2025, Cboe BZX Exchange, Inc. (``BZX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ 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,'' and together with the
4x Long Fund, the ``Funds''), each a series of GraniteShares ETP Trust,
under BZX Rule 14.11(f)(4). The proposed rule change was published for
comment in the Federal Register on October 3, 2025.\3\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 104161 (Sept. 30,
2025), 90 FR 48107 (``Notice''). The Commission has not received any
comments regarding the proposed rule change.
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On November 3, 2025, pursuant to Section 19(b)(2) of the Act,\4\
the Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to disapprove the proposed rule
change.\5\
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\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 104173, 90 FR 51424
(Nov. 17, 2025) (designating January 1, 2026, as the date by which
the Commission shall either approve, disapprove, or institute
proceedings to determine whether to disapprove the proposed rule
change).
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The Commission is publishing this order to solicit comments on the
proposed rule change from interested persons and to institute
proceedings under Section 19(b)(2)(B) of the Act \6\ to determine
whether to approve or disapprove the proposed rule change.
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\6\ 15 U.S.C. 78s(b)(2)(B).
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I. Summary of the Proposal
As described in more detail in the Notice,\7\ 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 on the
Exchange.\8\ The Funds seek to provide daily investment results (before
fees and expenses) that correspond to the performance of a benchmark
that seeks to offer either short or long exposure to the benchmark for
the Funds.\9\ The benchmark for the Funds is the Russell 1000 Index
(``Index''). The Funds are ``leveraged,'' which 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.\10\
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\7\ See Notice, supra note 3.
\8\ BZX Rule 14.11(f)(4) applies to Trust Issued Receipts that
invest in ``Financial Instruments.'' The term ``Financial
Instruments,'' as defined in BZX 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.
\9\ See Notice, supra note 3, 90 FR at 48107.
\10\ See Notice, supra note 3, 90 FR at 48108-09.
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The Funds may invest in over-the-counter swaps referencing the
Index (``Russell Swap Agreements''), forward contracts, options
contracts, futures contracts (``Russell Futures Contracts''), and other
Financial Instruments \11\ based on the Index.\12\ The amount of
exposure each Fund has to a specific combination of Financial
Instruments differs with each Fund and should be expected to change
from time to time at the discretion of GraniteShares Advisors LLC based
on market conditions and other factors.\13\ The Funds may also invest
in money market instruments (i.e., ``Cash and Cash Equivalents'') \14\
as part of their core investment strategy or to meet collateral and
margin requirements for their Russell Futures Contract positions,
Russell Swap Agreements, and Russell Option Contracts (collectively,
``Russell Derivative Products'').\15\ The Exchange represents that 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 each Fund's investment
objective.\16\
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\11\ See note 8, supra.
\12\ See Notice, supra note 3, 90 FR at 48107-08.
\13\ See Notice, supra note 3, 90 FR at 48108.
\14\ For purposes of this proposal, the term ``Cash and Cash
Equivalents'' shall have the definition provided in BZX Rule
14.11(i)(4)(C)(iii), applicable to Managed Fund Shares.
\15\ See Notice, supra note 3, 90 FR at 48108.
\16\ See id.
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II. Proceedings To Determine Whether To Approve or Disapprove SR-
CboeBZX-2025-141 and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \17\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comments
on the proposed rule change.
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\17\ 15 U.S.C. 78s(b)(2)(B).
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Pursuant to Section 19(b)(2)(B) of the Act,\18\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposal's consistency with Section 6(b)(5) of the Act,
which requires, among other things, that the rules of a national
securities exchange be ``designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade,'' and ``to protect investors and the public
interest.'' \19\
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\18\ Id.
\19\ 15 U.S.C. 78f(b)(5).
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The Commission asks that commenters address the sufficiency of the
Exchange's statements in support of the proposal, which are set forth
in the Notice, in addition to any other comments they may wish to
submit about the proposed rule change. In particular, the Commission
seeks comment on whether the proposal to list and trade Shares of the
Funds, which seek to provide daily investment results that correspond
to either 400% or -400% of the daily performance of the Index, is
designed to prevent fraudulent and manipulative acts and practices and
to protect investors and the public interest, or raises any new or
novel concerns not previously contemplated by the Commission.
III. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their data, views, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission
[[Page 60766]]
invites the written views of interested persons concerning whether the
proposed rule change is consistent with Section 6(b)(5) of the Act \20\
or any other provision of the Act, or the rules and regulations
thereunder. Although there do not appear to be any issues relevant to
approval or disapproval that would be facilitated by an oral
presentation of data, views, and arguments, the Commission will
consider, pursuant to Rule 19b-4 under the Act,\21\ any request for an
opportunity to make an oral presentation.\22\
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\20\ 15 U.S.C. 78f(b)(5).
\21\ 17 CFR 240.19b-4.
\22\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants to
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Acts Amendments of 1975,
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75,
94th Cong., 1st Sess. 30 (1975).
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Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change should be approved
or disapproved by January 20, 2026. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
February 2, 2026. The Commission asks that commenters address the
sufficiency of the Exchange's statements in support of the proposal, in
addition to any other comments they may wish to submit about the
proposed rule change. 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#0d7f786168206e6260606863797e4d7e686e236a627b"><span class="__cf_email__" data-cfemail="cab8bfa6afe7a9a5a7a7afa4beb98ab9afa9e4ada5bc">[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 January 20, 2026. Rebuttal comments should be submitted by
February 2, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-23820 Filed 12-23-25; 8:45 am]
BILLING CODE 8011-01-P
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