Notice2025-24052
Self-Regulatory Organizations; Nasdaq PHLX LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade Nasdaq Bitcoin Index Options
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 31, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 247 (Wednesday, December 31, 2025)</title>
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[Federal Register Volume 90, Number 247 (Wednesday, December 31, 2025)]
[Notices]
[Pages 61452-61454]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-24052]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104506; File No. SR-PHLX-2025-50]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Order Instituting
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change To List and Trade Nasdaq Bitcoin Index Options
December 23, 2025.
I. Introduction
On September 23, 2025, Nasdaq PHLX LLC (``Phlx'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the ``Act'' or the ``Exchange
Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposal to list and trade
Nasdaq Bitcoin Index options. The proposed rule change was published
for comment in the Federal Register on September 29, 2025.\3\ On
November 3, 2025, pursuant to Section 19(b)(2) of the Exchange Act,\4\
the Commission designated a longer period within which to either
approve the proposed rule change, disapprove the proposed rule change,
or institute
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proceedings to determine whether to disapprove the proposed rule
change.\5\ This order institutes proceedings under Section 19(b)(2)(B)
of the Exchange Act \6\ to determine whether to approve or disapprove
the proposed rule change.
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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. 104038 (Sept. 24,
2025), 90 FR 46706 (``Notice''). Comments received regarding the
proposed rule change are available at <a href="https://www.sec.gov/comments/sr-phlx-2025-50/srphlx202550.htm">https://www.sec.gov/comments/sr-phlx-2025-50/srphlx202550.htm</a>.
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 104173 (Nov. 3,
2025), 90 FR 51424 (Nov. 17, 2025). The Commission designated
December 28, 2025, as the date by which it shall approve,
disapprove, or institute proceedings to determine whether to
disapprove the proposed rule change.
\6\ 15 U.S.C. 78s(b)(2)(B).
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II. Description of the Proposed Rule Change
As described more fully in the Notice,\7\ the Exchange proposes to
list and trade options on the Nasdaq Bitcoin Index, an index that
reflects the price of bitcoin.\8\ According to the Exchange, Nasdaq
Bitcoin Index options will be based on the CME CF Bitcoin Real Time
Index (``BRTI'') divided by a factor of 100, and the final settlement
price for the options will be the CME CF Cryptocurrency Reference
Rate--New York Variant (``BRRNY'') divided by 100, which will be known
as the BRRNY--Nasdaq Options Settlement (``NOS'').\9\ Options on the
Nasdaq Bitcoin Index will be cash-settled with European-style
exercise.\10\ The Exchange states that holders of Nasdaq Bitcoin Index
options will receive U.S. dollars representing the difference between
the current bitcoin spot markets as represented by the BRRNY and the
exercise price of the option.\11\ The Exchange states that the proposal
is designed to ensure that Nasdaq Bitcoin Index options are listed and
traded under the same terms that apply to other index options traded on
the Exchange.\12\ The Exchange states that its sales practice and
trading rules, including rules addressing account opening, suitability,
discretionary accounts, supervision of accounts, confirmations to
customers, and delivery of the options disclosure document, will apply
to the Nasdaq Bitcoin Index options.\13\ The Exchange states that it
will apply the same surveillance procedures it applies to other index
option products to the Nasdaq Bitcoin Index options.\14\
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\7\ See supra note 3.
\8\ See Notice, 90 FR at 46707.
\9\ See id.
\10\ See id.
\11\ See id. at 46714.
\12\ See id. at 46716.
\13\ See id. at 46720.
\14\ See id. at 46721.
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III. Proceedings To Determine Whether To Approve or Disapprove SR-PHLX-
2025-50 and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Exchange Act \15\ 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 to inform the Commission's analysis of
whether to approve or disapprove the proposal.
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\15\ 15 U.S.C. 78s(b)(2)(B).
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Pursuant to Section 19(b)(2)(B) of the Exchange Act,\16\ the
Commission is providing notice of the grounds for disapproval under
consideration. The Commission is instituting proceedings to allow for
additional analysis of, and input from commenters with respect to, the
consistency of the proposal with Section 6(b)(5) of the Act,\17\ which
requires, among other things, that the rules of a national securities
exchange not be designed to regulate by virtue of any authority
conferred by the Exchange Act matters not related to the purposes of
the Exchange Act or the administration of the exchange.
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\16\ Id.
\17\ 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,\18\ 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 options on the
Nasdaq Bitcoin Index includes sufficient analysis to support a
conclusion that the proposal is consistent with the requirements of
Section 6(b)(5) of the Act, including the requirements that the rules
of a national securities exchange be designed to protect investors and
the public interest and not be designed to regulate by virtue of any
authority conferred by the Exchange Act matters not related to the
purposes of the Exchange Act or the administration of the exchange.
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\18\ See supra note 3.
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The Commission also seeks comment on the issues raised by
commenters.\19\
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\19\ See id.
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IV. 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 invites the written
views of interested persons concerning whether the proposed rule change
is consistent with the Act, and 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,\20\ any request for an opportunity to make an oral
presentation.\21\
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\20\ 17 CFR 240.19b-4.
\21\ 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 [insert date 21 days from publication in the Federal
Register]. Any person who wishes to file a rebuttal to any other
person's submission must file that rebuttal by [insert date 35 days
from publication in the Federal Register].
Comments may be submitted by any of the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#c3b1b6afa6eea0acaeaea6adb7b083b0a6a0eda4acb5"><span class="__cf_email__" data-cfemail="fa888f969fd7999597979f948e89ba899f99d49d958c">[email protected]</span></a>. Please include
File Number SR-PHLX-2025-50 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-2025-50. 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
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internet website (<a href="http://www.sec.gov/rules/sro.shtml">http://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-2025-50 and should be submitted by January 21, 2026. Rebuttal
comments should be submitted by February 4, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-24052 Filed 12-30-25; 8:45 am]
BILLING CODE 8011-01-P
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