63176 Federal Register / Vol. 88, No. 177 / Thursday, September 14, 2023 / Notices 

30See, e.g., ICE Clear Europe Rule 111(f). 

31 17 CFR 240.17a–1(a) and (b). 

32See also 17 CFR 240.17a–1(c). 

33 17 CFR 240.17Ab2–1. 34 15 U.S.C. 78s(a)(3). 35 15 U.S.C. 78q–1. 36 In the Written Request, ICE Clear Europe 

represents that it does not currently clear any equity 

options on U.S. securities or single stock futures on 

U.S. securities. ICE Clear Europe further represents 

that ICE Clear Europe Rule 207(g) is intended to 

comprehensively exclude U.S. person Clearing 

Members for the purpose of clearing contracts that 

are futures or options on underlying U.S. securities. 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

Europe’s Rules, ICE Clear Europe 

expects that claims against it in respect 

of the CDS clearing business would be 

limited to those of CDS Clearing 

Members arising in connection with 

cleared CDS contracts. Accordingly, 

once such contracts are terminated and 

finally settled in accordance with ICE 

Clear Europe’s Rules as described above, 

and the Margin, Permitted Cover, and 

CDS Guaranty Fund Contributions of 

CDS Clearing Members are made 

available for withdrawal as described 

above, ICE Clear Europe does not 

anticipate that there would be any 

further claims of CDS Clearing Members 

in respect of the CDS clearing business. 

ICE Clear Europe further does not 

believe other persons would have 

claims against it in respect of cleared 

CDS contracts 30 and that it has no other 

known or anticipated claims by or 

against it that are associated with its 

CDS Business or clearing agency 

registration. However, to the extent any 

valid claims relating to the CDS 

business may nonetheless be brought 

against it in the five years following 

withdrawal from registration (or such 

longer period as may be required by 

law), ICE Clear Europe—which will 

remain a going concern—would expect 

to pay such claims in the ordinary 

course of its operations. Finally, ICE 

Clear Europe will maintain records 

necessary to evaluate and address any 

contingent or other claims that be 

brought against it after withdrawal of its 

registration, for the period and in the 

manner discussed in point 7 below. 

7. ICE Clear Europe will retain and 

maintain all documents, books, and 

records, including correspondence, 

memoranda, papers, notices, accounts, 

and other records made or received by 

it in the ordinary course of its CDS 

Business and its activities as a registered 

clearing agency, in accordance with the 

requirements of Exchange Act Rule 17a– 

1(a) and (b),31 for a period of at least five 

years from the effective date of the 

withdrawal of registration. ICE Clear 

Europe further will produce such 

records and furnish such information at 

the request of any representative of the 

Commission, in accordance with 

Exchange Act Rule 17a–1(c).32

8. Following the effectiveness of its 

withdrawal from registration hereunder, 

ICE Clear Europe will not seek to engage 

in securities clearing activity relating to 

security-based swaps in reliance on any 

deemed registered status pursuant to 

section 17A(l) of the Act. ICE Clear 

Europe notes that its affiliate, ICE Clear 

Credit LLC, will continue to clear 

security-based swaps as a registered 

clearing agency. If other affiliates of ICE 

Clear Europe seek to clear securitybased swaps or other securities products 

in a manner that requires registration 

with the Commission under the Act, 

such affiliate would do so after 

registration with the Commission 

pursuant to the process set forth in 

Exchange Act Rule 17Ab2–1.33

ICE Clear Europe therefore requests 

that the Commission issue an order, 

pursuant to section 19(a)(3) of the Act,34

that its registration as a clearing agency 

under section 17A of the Act 35 with 

respect to security-based swaps be 

withdrawn as of the Withdrawal Date of 

October 27, 2023, or as soon as 

practicable thereafter. 

In the Written Request, ICE Clear 

Europe also requests that, effective as of 

the withdrawal of its registration 

hereunder, the Securities Product 

Exemption be withdrawn. As noted 

above, ICE Clear Europe requested, and 

the Commission granted, the Securities 

Product Exemption in light of the 

combination of security-based swap 

clearing activity and securities option 

clearing activity contemplated by ICE 

Clear Europe at the time. ICE Clear 

Europe represents in the Written 

Request that, upon cessation of securitybased swap clearing activity and 

withdrawal of its clearing agency 

registration, ICE Clear Europe will fall 

within the category of foreign clearing 

agencies for which registration (or an 

exemption) is not required due to its 

lack of contact with the U.S.36

Accordingly, in ICE Clear Europe’s 

view, the Securities Product Exemption 

will not be necessary for ICE Clear 

Europe’s continued operation of the 

F&O clearing service following 

withdrawal of its clearing agency 

registration. As a result, ICE Clear 

Europe requests that the Commission 

terminate the Securities Product 

Exemption at the same time it approves 

ICE Clear Europe’s request to withdraw 

from registration as a clearing agency. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the requested 

withdrawal is consistent with the 

Exchange Act. Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/other.shtml), or 

• Send an email to rule-comments@

sec.gov. Please include File No. 4–809 

on the subject line. 

Paper Comments 

• Send paper comments to Secretary, 

Securities and Exchange Commission, 

100 F Street NE, Washington, DC, 

20549–1090. 

All submissions should refer to File 

Number 4–809. 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 (https://www.sec.gov/rules/ 

sro.shtml). Comments are also available 

for website viewing and printing in the 

Commission’s Public Reference Room, 

100 F Street NE, Washington, DC 20549, 

on official business days between the 

hours of 10 a.m. and 3 p.m. Operating 

conditions may limit access to the 

Commission’s Public Reference Room. 

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 4–809 and should be 

submitted on or before October 5, 2023. 

By the Commission. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19847 Filed 9–13–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98339; File No. SR–MEMX– 

2023–18] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Rule 19.5 

September 8, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2


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3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 95445 

(August 9, 2022), 87 FR 49884 (August 12, 2022) 

(SR–MEMX–2022–010). 

6See Securities Exchange Act Release Nos. 95406 

(August 1, 2022), 87 FR 48051 (August 5, 2022) 

(SR–CboeBZX–2022–042); 95407 (August 1, 2022), 

87 FR 48055 (August 5, 2022) (SR–CboeEDGX– 

2022–034). 

7Currently, the Exchange plans to launch MEMX 

Options in September 2023. 

8Rule 19.5, Interpretation and Policy .05(e) states 

if a class does not trade in $1 strike price intervals, 

the strike price interval for Short Term Option 

Series may be (i) $0.50 or greater where the strike 

price is less than $75; (ii) $1.00 or greater where the 

strike price is between $75 and $150; or (iii) $2.50 

or greater for strike prices greater than $150. 

9The proposed rule change makes a 

nonsubstantive change to correct the term 

‘‘subparagraph’’ to ‘‘paragraph’’ in the introductory 

paragraph of Rule 19.5, Interpretation and Policy 

.05(f) as well as subparagraph (f)(3). 

notice is hereby given that on 

September 6, 2023, MEMX LLC 

(‘‘MEMX’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to section 19(b)(3)(A)(iii) of the 

Act 3 and Rule 19b–4(f)(6) thereunder.4

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

MEMX Rule 19.5. The text of the 

proposed rule change is provided in 

Exhibit 5. 

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 purpose of the proposed rule 

change is to amend Rule 19.5, 

Interpretation and Policy .05. 

Specifically, the Exchange proposes to 

amend Rule 19.5, Interpretation and 

Policy .05(f) to account for conflicts 

between different provisions within the 

Short Term Option Series Rules, extend 

current $0.50 strike price intervals in 

equity options to short term options 

with strike prices less than $100, and 

make other clarifying changes. 

In August 2022, the Commission 

approved the Exchange’s adoption of 

rules to govern the trading of options on 

the Exchange by MEMX Options,5

which will be a facility of the Exchange. 

The rules adopted were substantially 

similar to those of other currently 

operating options exchanges, in 

particular, Cboe BZX Exchange, Inc. 

(‘‘BZX Options’’). Since that time, BZX 

Options and other options exchanges, 

including Cboe EDGX Exchange, Inc. 

(‘‘EDGX Options’’), have modified 

certain of those rules 6 and as such, the 

Exchange wishes to propose the same 

modifications in order to conform to 

those rules at the time trading begins on 

MEMX Options.7

Specifically, the Exchange’s current 

Rule 19.5, Interpretation and Policy .05 

limits the intervals between strikes in 

equity options listed as part of the Short 

Term Option Series Program, excluding 

Exchange-Traded Fund Shares and 

ETNs, that have an expiration date more 

than twenty-one days from the listing 

date (‘‘Strike Interval Proposal’’). The 

Strike Interval Proposal paragraph (f) 

includes a table that specifies the 

applicable strike intervals that would 

supersede subparagraph (e) 8 for Short 

Term Option Series in equity options, 

excluding options on exchange-traded 

fund shares and on exchange-traded 

notes, which have an expiration more 

than 21 days from the listing date. The 

Strike Interval Proposal was designed to 

reduce the density of strike intervals 

that would be listed in later weeks, 

within the Short Term Option Series 

Program, by utilizing limitations for 

intervals between strikes that have an 

expiration date more than 21 days from 

the listing date. 

The Exchange proposes to amend 

Rule 19.5, Interpretation and Policy .05 

to clarify the current rule text and 

amend the application of the table to 

account for potential conflicts within 

the Short Term Option Series Rules. 

Currently, Rule 19.5, Interpretation and 

Policy .05(f) provides that 

notwithstanding subparagraph (e),9

when Short Term Option Series in 

equity options (excluding options on 

ETFs and ETNs) have an expiration 

more than 21 days from the listing date, 

the strike interval for each option class 

will be based on the following table, and 

also states: ‘‘to the extent there is 

conflict between applying subparagraph 

(e) above and the below table, the 

greater interval would apply.’’ The 

existing table is as follows: 

Tier Average daily volume 

Share price 1

Less 

than $25 

$25 to less 

than $75 

$75 to less 

than $150 

$150 to less 

than $500 

$500 or 

greater 

1 ........................ Greater than 5,000 ............................... $0.50 $1.00 $1.00 $5.00 $5.00 

2 ........................ Greater than 1,000 to 5,000 ................. 1.00 1.00 1.00 5.00 10.00 

3 ........................ 0 to 1,000 .............................................. 2.50 5.00 5.00 5.00 10.00 

1The Share Price is the closing price on the primary market on the last day of the calendar quarter. In the event of a corporate action, the 

Share Price of the surviving company is utilized. The Average Daily Volume is the total number of option contracts traded in a given security for 

the applicable calendar quarter divided by the number of trading days in the applicable calendar quarter. Beginning on the second trading day in 

the first month of each calendar quarter, the Average Daily Volume is calculated by utilizing data from the prior calendar quarter based on Customer-cleared volume at OCC. For options listed on the first trading day of a given calendar quarter, the Average Daily Volume is calculated 

using the quarter prior to the last trading calendar quarter. See Rule 19.5, Interpretation and Policy .05(f)(1) and (2). 

First, the Exchange proposes to add 

the phrase ‘‘which specifies the 

applicable interval for listing’’ to the 

end of the first sentence of paragraph (f). 

The table within that paragraph 

provides for the listing of intervals 

based on certain parameters (average 

daily volume and share price). The 

Exchange proposes to add the phrase 

‘‘which specifies the applicable interval 

for listing’’ to clarify that the only 

permitted intervals are as specified in 


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10See supra note 6. 

the table within paragraph (f), as 

proposed to be amended. 

Second, the Exchange proposes to 

delete the final sentence of paragraph (f) 

which indicates that in the event of a 

conflict between applying subparagraph 

(e) and the below table, the greater 

interval would apply, and amend the 

table in paragraph (f) to address 

situations in which there is a conflict 

between applying the intervals in 

paragraph (e) and the table in paragraph 

(f). Today, there are instances where a 

conflict is presented as between the 

application of the table within 

paragraph (f) and the rule text within 

paragraph (e) with respect to the correct 

interval. To address these potential 

conflicts, the Exchange included the 

final sentence in paragraph (f) that 

indicates to the extent there is a conflict 

between applying the current table 

within paragraph (f) and the rule text 

within paragraph (e), the greater interval 

would apply. However, in order to more 

clearly reflect this within the Rules and 

maintain consistency with other 

exchanges 10, the Exchange proposes to 

amend the table in paragraph (f) to 

specify what the greater interval would 

be, and thus the interval the Exchange 

would apply, in the event of any 

possible conflict between the two rule 

provisions. While the substance of the 

rule does not change by this proposed 

modification, the Exchange believes that 

the amended table provides a simpler 

reference for Options Members. 

Specifically, the proposed rule change 

amends the table as follows: 

Tier Average daily 

volume 

Share price 

Less 

than $25 

$25 to less 

than $75 

$75 to less 

than $150 

$150 to less 

than $500 

$500 or 

greater 

1 ........... Greater than 

5,000.

$0.50 for strikes less than $100 in 

Short Term Option Series Program 

classes and classes that trade in $1 

increments in non-Short Term Option Series.

$1.00 for strikes between $100 and 

$150 for classes that do not otherwise trade in $1.00 increments in 

non-Short Term Option Series.

$2.50 for strikes greater than $150. 

$1.00 for strikes 

less than $150.

$2.50 for strikes 

greater than 

$150.

$1.00 for strikes 

less than $150.

$2.50 for strikes 

greater than 

$150. 

$5.00 $5.00 

2 ........... Greater than 

1,000 to 

5,000.

$1.00 for strikes less than $150 .........

$2.50 for strikes greater than $150. 

$1.00 for strikes 

less than $150.

$2.50 for strikes 

greater than 

$150.

$1.00 for strikes 

less than $150.

$2.50 for strikes 

greater than 

$150.

5.00 10.00 

3 ........... 0 to 1,000 ....... $2.50 ................................................... $5.00 .................... $5.00 .................... 5.00 10.00 

Below are some examples to 

demonstrate the application of the 

proposed table: 

Example 1: Assume a Tier 1 stock that 

closed on the last day of Q1 with a 

quarterly share price higher than $75 

but less than $150. Therefore, utilizing 

the current table within paragraph (f), 

the interval would be $1.00 for strikes 

added during Q2 even for strikes above 

$150. However, paragraph (e) provides 

that the Exchange may list a Short Term 

Option Series at $2.50 intervals where 

the strike price is above $150. In other 

words, there is a potential conflict 

between the permitted strike intervals 

above $150 during Q2. In this example, 

current paragraph (f) would specify a 

$1.00 interval whereas current 

paragraph (e) would specify a $2.50 

interval. Consistent with selecting the 

greater interval (from current paragraph 

(e)), the permissible strike interval in 

this scenario would be $2.50 as set forth 

in the proposed table. Therefore, during 

Q2, the following strikes would be 

eligible to list: $152.50 and $157.50. For 

strikes less than $150, the following 

strikes would be eligible to list during 

Q2: $149 and $148 because Short Term 

Option Series with expiration dates 

more than 21 days from the listing date 

as well as Short Term Option Series 

with expiration dates less than 21 days 

from the listing date would both be 

eligible to list $1 intervals pursuant to 

both paragraphs (e) and (f). 

Example 2: Assume a Tier 2 stock that 

closed on the last day of Q1 with a 

quarterly share price less than $25. 

Therefore, utilizing the current table 

within paragraph (f), the interval would 

be $1.00 for strikes added during Q2 

even for strikes above $25. However, 

paragraph (e), as proposed to be 

amended, provides that the Exchange 

may list a Short Term Option Series at 

$0.50 intervals where the strike is less 

than $100, at $1.00 intervals where the 

strike price is between $100 and $150, 

and at $2.50 intervals where the strike 

price is above $150. In other words, 

there is a potential conflict between the 

permitted strike intervals below $100 

and above $150 during Q2. In this 

example, current paragraph (f) would 

specify a $1.00 interval for strikes below 

$100 whereas amended paragraph (e) 

would specify a $0.50 interval. 

Consistent with selecting the greater 

interval (from current paragraph (f)), the 

permissible strike interval in this 

scenario for strikes below $100 would 

be $1.00 as set forth in the proposed 

table. For strikes between $100 and 

$150, there is no conflict, as both 

provisions would provide $1.00 

intervals for those strikes. For strikes 

above $150, current paragraph (f) would 

specify a $1.00 interval for strikes above 

$150 whereas current paragraph (e) 

would specify a $2.50 interval. 

Consistent with selecting the greater 

interval (from current paragraph (e)), the 

permissible strike interval in this 

scenario for strikes above $150 would be 

$2.50 as set forth in the proposed table. 

Example 3: Assume a Tier 3 stock that 

closed on the last day of Q1 with a 

quarterly share price less than $25. 

Therefore, utilizing the current table 

within paragraph (f), the interval would 

be $2.50 for all strikes added during Q2. 

However, paragraph (e), as proposed to 

be amended, provides that the Exchange 

may list a Short Term Option Series at 

$0.50 intervals where the strike price is 

less than $100, $1.00 intervals where 

the strike price is between $100 and 

$150, and $2.50 intervals where the 

strike price is above $150. In other 

words, there is a potential conflict 

between the permitted strike intervals 


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11The Exchange made similar corresponding 

changes to the table for tier 1 and tier 2 stocks with 

prices $25 to less than $75 and $75 to less than 

$150, with all potential conflicts between current 

paragraphs (e) and (f) resolved to apply the greater 

interval. 

12See, e.g., EDGX Rule 19.6, Interpretation and 

Policy .05(e). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

15 Id. 

16For example, two strikes that are densely 

clustered may have the same risk properties and 

may also be the same percentage out-of-the-money. 

17See, e.g., EDGX Rule 19.6, Interpretation and 

Policy .05(e). 

below $150 during Q2 (there is no 

conflict for strikes above $150, as both 

provisions provide for a $2.50 strike 

interval). Consistent with selecting the 

greater interval (from current paragraph 

(f)), the permissible strike interval in 

this scenario for strikes below $150 

would be $2.50 as set forth in the 

proposed table.11

Finally, the Exchange proposes to 

amend Rule 19.5, Interpretation and 

Policy .05(e) to extend $0.50 strike price 

intervals in equity options to short-term 

options with strike prices less than $100 

instead of the current $75. This 

proposed change is intended to conform 

this provision of the Short Term Option 

Series Program to that of other options 

exchanges.12 With this proposed 

change, for short term options in equity 

option classes that do not trade in $1 

strike price intervals, the strike price 

interval for Short Term Option Series 

may be (i) $0.50 or greater where the 

strike price is less than $100; (ii) $1.00 

or greater where the strike price is 

between $100 and $150; or (iii) $2.50 or 

greater for strike prices greater than 

$150. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the Securities Exchange Act of 1934 (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. 

The Exchange believes the Strike 

Proposal continues to limit the intervals 

between strikes listed in the Short Term 

Option Series Program that have an 

expiration date more than twenty-one 

days. 

In particular, the Exchange’s proposed 

addition to the first sentence of Rule 

19.5, Interpretation and Policy .05(f) is 

consistent with the Act because it 

clarifies that the only permitted 

intervals are as specified in the table 

within that subparagraph, as amended. 

The Exchange believes this proposed 

rule change will bring greater 

transparency to the rule. The proposed 

rule change to delete the final sentence 

of the introductory paragraph and 

amend the table within Rule 19.5, 

Interpretation and Policy .05(f) to 

address potential conflicts between that 

paragraph and paragraph (e) with 

respect to the correct strike interval is 

consistent with the Act because it 

protects investors and the public 

interest by adding transparency to the 

manner in which the Exchange 

implements its listing rules and removes 

potential uncertainty. The proposed rule 

text specifies the applicable intervals 

when there is a conflict between the 

rule text within paragraphs (e) and (f), 

thereby providing certainty as to the 

outcome. 

The Strike Interval Proposal was 

designed to reduce the density of strike 

intervals that would be listed in later 

weeks, within the Short Term Option 

Series Program, by utilizing limitations 

for intervals between strikes which have 

an expiration date more than twentyone days from the listing date. The 

Exchange’s proposal intends to continue 

to remove certain strike intervals where 

there exist clusters of strikes whose 

characteristics closely resemble one 

another and, therefore, do not serve 

different trading needs,16 rendering 

these strikes less useful. Also, the Strike 

Interval Proposal continues to reduce 

the number of strikes listed on the 

Exchange, allowing Market-Makers to 

expend their capital in the options 

market in a more efficient manner, 

thereby improving overall market 

quality on the Exchange. 

Additionally, by providing more 

clarity as to which interval would apply 

between the current rule text within 

Rule 19.5, Interpretation and Policy 

.05(e) and (f), the Exchange is reducing 

the number of strikes listed in a manner 

consistent with the intent of the Strike 

Interval Proposal, which was to reduce 

strikes which were farther out in time. 

The result of this clarification is to 

select wider strike intervals for Short 

Term Option Series in equity options 

which have an expiration date more 

than twenty-one days from the listing 

date. This rule change would harmonize 

strike intervals as between inner 

weeklies (those having less than twentyone days from the listing date) and outer 

weeklies (those having more than 

twenty-one days from the listing date) 

so that strike intervals are not widening 

as the listing date approaches. 

The proposed rule change to extend 

current $0.50 strike price intervals in 

equity options to short term options 

with strike prices less than $100 will 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, because 

it will conform this portion of the Short 

Term Option Series Program to that of 

other options exchanges.17

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. The Strike 

Interval Proposal continues to limit the 

number of Short Term Option Series 

Program strike intervals available for 

quoting and trading on the Exchange for 

all Options Members. 

The Exchange believes adding 

clarifying language to the first sentence 

of Rule 19.5, Interpretation and Policy 

.05(f) regarding which parameter the 

table within that provision amends 

within the Short Term Option Series 

Program will bring greater transparency 

to the rules. Amending the table within 

paragraph (f) to address potential 

conflicts as between the rule text of Rule 

19.5, Interpretation and Policy .05(e) 

and (f) will bring greater transparency to 

and reduce potential confusion 

regarding the manner in which the 

Exchange implements its listing rules. 

Deleting the last sentence of the first 

paragraph of the introductory paragraph 

of Rule 19.5, Interpretation and Policy 

.05(f) does not impose an undue burden 

on competition and will avoid potential 

confusion because the table within 

paragraph (f) clarifies which strike 

intervals will apply in all scenarios. 

Extending current $0.50 strike price 

intervals in equity options to short term 

options with strike prices less than $100 

will not impose an undue burden on 

competition, because it is consistent 


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18 Id. 

19 15 U.S.C. 78s(b)(3)(A). 

20 17 CFR 240.19b–4(f)(6)(iii). 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. 

21 17 CFR 240.19b–4(f)(6). 

22 17 CFR 240.19b–4(f)(6)(iii). 

23See supra note 6. 

24For 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). 

25 17 CFR 200.30–3(a)(12), (59). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

with the rules of other options 

exchanges.18

While this proposal continues to limit 

the intervals of strikes listed on the 

Exchange, the Exchange continues to 

balance the needs of market participants 

by continuing to offer a number of 

strikes to meet a market participant’s 

investment objective. The Exchange’s 

Strike Interval Proposal does not impose 

an undue burden on intermarket 

competition as this Strike Interval 

Proposal does not impact the listings 

available at another self-regulatory 

organization. 

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. 

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) of the Act 19 and Rule 19b– 

4(f)(6) thereunder.20

A proposed rule change filed under 

Rule 19b–4(f)(6) 21 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),22 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 proposed 

rule change may become operative upon 

filing. The proposed rule change is 

substantially similar to those of other 

currently operating options 

exchanges.23 The Exchange states that it 

intends to launch MEMX Options on 

September 13, 2023 and that waiver of 

the 30-day operative delay would allow 

the Exchange to implement the 

proposed change to amend its rules as 

set forth above prior to launch, thus 

ensuring consistency of strike rules 

between the Exchange and other options 

exchanges. For these reasons, and 

because the proposed rule change does 

not raise any novel legal or regulatory 

issues, the Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. 

Therefore, the Commission hereby 

waives the 30-day operative delay and 

designates the proposal operative upon 

filing.24

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 

change 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 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

MEMX–2023–18 on the subject line. 

Paper Comments 

• 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–MEMX–2023–18. 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 (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

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–MEMX–2023–18 and should be 

submitted on or before October 5, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19846 Filed 9–13–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98328; File No. SR–NSCC– 

2023–008] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Recovery 

and Wind-Down Plan 

September 8, 2023. 

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 

September 1, 2023, National Securities 

Clearing Corporation (‘‘NSCC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by the clearing 

agency. NSCC filed the proposed rule 

change pursuant to section 19(b)(3)(A) 


lotter on DSK11XQN23PROD with NOTICES1