62126 Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Notices 

41 17 CFR 240.17Ad–22(e)(1). 

42 17 CFR 240.17Ad–22(e)(1). 

43 15 U.S.C. 78q–1(b)(3)(F). 

44 17 CFR 240.17Ad–22(e)(21) 

45 17 CFR 240.17Ad–22(e)(1). 

46 In approving the Proposed Rule Change, the 

Commission considered the proposal’s impacts on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

47 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

enforce written policies and procedures 

reasonably designed to provide for a 

well-founded, clear, transparent, and 

enforceable legal basis for each aspect of 

its activities in all relevant 

jurisdictions.41

The Commission believes that the 

other changes related to the Default 

Management Process, as discussed 

above, would help to ensure that the 

legal basis for LCH SA’s activities is 

well-founded and clear. LCH SA 

proposes to amend Article 4.2.2 

regarding the stages of defaults where a 

Clearing Member is a CCM. Specifically, 

LCH SA proposes to add additional 

conditions regarding the transfer of 

Collateral. This helps to ensure clarity 

in the CDS Default Management 

Process. 

LCH SA is amending its Procedures 

and Rule book to create a standard to 

create an enforceable legal basis for its 

portfolio margining is the practice by 

which transactions in SBS are cleared 

and held on a commingled basis with 

transactions in swaps. This standard is 

based on the Portfolio Margining Order 

and the CFTC Portfolio Margining 

Order. This Program creates a clear and 

well-founded legal basis based on the 

guidance from both the CFTC and the 

Commission. 

As discussed above, LCH SA proposes 

to make clarifying amendments to its 

Liquidity Risk Modeling Framework. 

For example, as discussed above, the 

Proposed Rule Change would amend the 

description of the liquidity need 

repayment of excess cash by members. 

The Proposed Rule Change would 

provide that, when calculating the 

liquid resources available, the cash 

received from the FCM/BD Clearing 

Members on behalf of their FCM/BD 

Clients is excluded. This helps ensure 

LCH SA has clear standards when 

calculating liquid resources available. 

Thus, the Commission finds that these 

aspects of the Proposed Rule Change are 

consistent with Rule 17Ad–22(e)(1).42

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the Proposed 

Rule Change is consistent with the 

requirements of the Act, and in 

particular, 17A(b)(3)(F) of the Act,43

Rule 17Ad–22(e)(21),44 and Rule 17Ad– 

22(e)(1) 45 thereunder. 

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act that the 

Proposed Rule Change (SR–LCH SA– 

2023–005) be, and hereby is, 

approved.46

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.47

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19354 Filed 9–7–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98277; File No. SR–CBOE– 

2023–043] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 4.3 

(Criteria for Underlying Securities) To 

Accelerate the Listing of Options on 

Certain IPOs 

September 1, 2023. 

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 August 

24, 2023, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) 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 

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 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to amend 

Rule 4.3. The text of the proposed rule 

change is provided below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe Exchange, Inc. 

* * * * * 

Rule 4.3. Criteria for Underlying 

Securities 

(a)–(b) No change. 

Interpretations and Policies 

.01 The [Board of Directors]Exchange 

has established guidelines to be 

considered [by the Exchange in]when 

evaluating potential underlying 

securities for Exchange option 

transactions. Absent exceptional 

circumstances with respect to 

subparagraphs (a)(1), (a)(2), (b)(1), or 

(b)(2) listed below, at the time the 

Exchange selects an underlying security 

for Exchange option transactions, the 

following guidelines with respect to the 

issuer shall be met. 

(a) No change. 

(b) Guidelines applicable to the 

market for the security are: 

(1) No change. 

(2) (A) If the underlying security is a 

‘‘covered security’’ as defined under 

Section 18(b)(1)(A) of the Securities Act 

of 1933[,]: (i) the market price per share 

of the underlying security has been at 

least $3.00 for the previous three 

consecutive business days preceding the 

date on which the Exchange submits a 

certificate to the OCC for listing and 

trading. For purposes of this 

Interpretation .01(b)(2)(A), the market 

price of such underlying security is 

measured by the closing price reported 

in the primary market in which the 

underlying security is traded; however, 

(ii) the requirements set forth in clause 

(i) will be waived during the three days 

following an underlying security’s initial 

public offering day if the underlying 

security has a market capitalization of 

at least $3 billion based on upon the 

offering price of its initial public 

offering, in which case options on the 

underlying security may be listed and 

traded starting on or after the second 

business day following the initial public 

offering day. 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.aspx), at the 

Exchange’s Office of the Secretary, and 

at the Commission’s Public Reference 

Room. 

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. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Notices 62127 

3See Securities Exchange Act Release No. 98013 

(July 27, 2023) 88 FR 50927 (August 2, 2023) (SR– 

NYSEAMER–2023–27) (Order Granting Approval of 

a Proposed Rule Change to Amend Rule 915 

(Criteria for Underlying Securities) to Accelerate the 

Listing of Options on Certain IPO). 

4 Id. 

5Current Exchange Rule 4.3(a) requires that, for 

underlying securities to be eligible for listing and 

trading on the Exchange, securities must be duly 

registered and be an NMS stock (as defined in Rule 

600 of Regulation NMS under the Act) and be 

characterized by a substantial number of 

outstanding shares that are widely held and actively 

traded. The Exchange also proposes to replace the 

term ‘‘Board of Directors’’ with Exchange and make 

conforming nonsubstantive changes to the 

introductory paragraph of Rule 4.3, Interpretation 

and Policy .01, as it is outdated. The Board of 

Directors delegated authority to determine listing 

criteria to Exchange management. Exchange 

management currently determines guidelines for 

evaluating potential underlying securities for 

Exchange option transactions, as set forth in Rule 

4.3(b). 

6See Exchange Rule 4.3, Interpretation and Policy 

.01(b)(2)(A). The Exchange is not proposing to make 

any changes to the guidelines for listing securities 

that are not a ‘‘covered security.’’ See Exchange 

Rule 4.3, Interpretation and Policy .01(b)(2)(B). 

7While the Exchange acknowledges that market 

participants may utilize options for speculative 

purposes (in addition to as a hedging tool), the 

Exchange believes (as set forth below) that its 

existing surveillance technologies and procedures 

adequately address potential violations of exchange 

rules and federal securities laws applicable to 

trading on the Exchange. 

8See proposed Rule 4.3, Interpretation and Policy 

.01(b)(2)(A)(ii). 

9The Exchange acknowledges that the Options 

Listing Procedures Plan (or ‘‘OLPP’’) requires that 

the listing certificate be provided to OCC no earlier 

than 12:01 a.m. and no later than 11:00 a.m. 

(Chicago time) on the trading day prior to the day 

on which trading is to begin. See OLPP, at p. 3., 

available here: https://www.theocc.com/getmedia/ 

198bfc93-5d51-443c-9e5b-fd575a0a7d0f/options_

listing_procedures_plan.pdf. The OLPP is a national 

market system plan that, among other things, sets 

forth procedures governing the listing of new 

options series. 

10See supra note 5. 

11 Id. 

12 Id. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 4.3. The Exchange proposes a 

listing rule change that is substantially 

similar in all material respects to the 

proposal approved for NYSE American 

LLC (‘‘NYSE American’’).3 NYSE 

American filed a proposed rule change,4

which the Securities and Exchange 

Commission (the ‘‘Commission’’) 

recently approved, to modify the 

standard for the listing and trading of 

options on ‘‘covered securities’’ to 

reduce the time to market in NYSE 

American Rule 915 (Criteria for 

Underlying Securities). At this time, the 

Exchange proposes to adopt a 

substantively identical rule. 

Proposal 

Exchange Rule 4.3, Interpretation and 

Policy .01 sets forth the guidelines to be 

considered by the Exchange in 

evaluating potential underlying 

securities that are ‘‘covered securities,’’ 

as defined in Section 18(b)(1)(A) of the 

Securities Act of 1933 (hereinafter 

‘‘covered security’’ or ‘‘covered 

securities’’), for Exchange option 

transactions.5 Currently, the Exchange 

permits the listing of an option on an 

underlying covered security that, 

amongst other things, has a market price 

of at least $3.00 per share for the 

previous three consecutive business 

days preceding the date on which the 

Exchange submits a certificate to The 

Options Clearing Corporation (‘‘OCC’’) 

to list and trade options on the 

underlying security (the ‘‘three-day 

lookback period’’).6 Under the current 

rule, if an initial public offering (‘‘IPO’’) 

occurs on a Monday, the earliest date 

the Exchange could submit its listing 

certificate to OCC would be on 

Thursday, with the market price 

determined by the closing price over the 

three-day lookback period from Monday 

through Wednesday. The option on the 

IPO’d security would then be eligible for 

trading on the Exchange on Friday (i.e., 

within four business days of the IPO 

inclusive of the day the listing 

certificate is submitted to OCC). 

The Exchange notes that the three-day 

look back period helps ensure that 

options on underlying securities may be 

listed and traded in a timely manner 

while also allowing time for OCC to 

accommodate the certification request. 

However, there are certain large IPOs 

that issue high-priced securities—well 

above the $3.00 per share threshold— 

that would obviate the need for the 

three-day lookback period. The 

Exchange understands from market 

participants that the proposed changes 

would help options on covered 

securities with a market capitalization 

of at least $3 billion based upon the 

offering prices of their IPOs come to 

market earlier. The proposed change, 

which the Exchange expects will be 

harmonized across options exchanges, is 

designed to provide investors the 

opportunity to hedge their interests in 

IPO investments in a shorter amount of 

time than what is currently permitted.7

The Exchange believes that options 

serve as a valuable tool to the trading 

community and help markets function 

efficiently by mitigating risk. To that 

end, the Exchange believes that the 

absence of options in the early days 

after an IPO may heighten volatility in 

the trading of IPO’d securities.8

Accordingly, the Exchange proposes 

to modify Rule 4.3, Interpretation and 

Policy .01(b)(2) to waive the three-day 

lookback period for covered securities 

that have a market capitalization of at 

least $3 billion based upon the offering 

price of the IPO of such securities and 

to allow options on such securities to be 

listed and traded starting on or after the 

second business day following the 

initial public offering day (i.e., not 

inclusive of the day of the IPO).9 NYSE 

American noted in its rule change that 

it reviewed trading data for IPO’d 

securities dating back to 2017 and is 

unaware of any such security that 

achieved a market capitalization of $3 

billion based upon the offering price of 

its IPO that would not have also 

qualified for listing options based on the 

three-day lookback requirement.10

Specifically, NYSE American stated in 

its rule change that it determined that 

202 of the 1,179 IPOs that took place 

between January 1, 2017, and October 

21, 2022 met the $3 billion market 

capitalization/IPO offering price 

threshold.11 Further, NYSE American 

stated that options on all 202 of those 

IPO shares subsequently satisfied the 

three-day lookback requirement for 

listing and trading, i.e., none of these 

large IPOs closed below the $3.00/share 

threshold during its first three days of 

its trading.12 As such, the Exchange 

believes the proposed capitalization 

threshold of $3 billion based upon the 

offering price of its IPO is appropriate. 

Under the proposed rule, if an IPO for 

a company with a market capitalization 

of $3 billion based upon the offering 

price of its IPO occurs on a Monday, the 

Exchange could submit its listing 

certificate to OCC (to list and trade 

options on the IPO’d security) as soon 

as all the other requirements for listing 

are satisfied. If, on Tuesday, all 

requirements are deemed satisfied, 

options on the IPO’d security could then 

be eligible for trading on the Exchange 

on Wednesday (i.e., starting on or after 

the second business day following the 

IPO day). Thus, the proposal could 

potentially accelerate the listing of 

options on IPO’d securities by two days. 

The Exchange believes the proposed 

change would allow options on IPO’d 

securities to come to market sooner 

without sacrificing investor protection. 

The Exchange represents that trading in 

options on IPO’d securities—like all 

other options traded on the Exchange— 

is subject to surveillances administered 

by the Exchange and/or FINRA on 


lotter on DSK11XQN23PROD with NOTICES1
62128 Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Notices 

13FINRA currently conducts certain surveillances 

on behalf of the Exchange pursuant to a regulatory 

services agreement. To the extent that FINRA may 

conduct any surveillances on behalf of the 

Exchange pursuant to the regulatory services 

agreement (which surveillances may vary over 

time), the Exchange is responsible for FINRA’s 

performance under the regulatory services 

agreement. The Exchange is also a party to a 

bilateral Rule 17d–2 Agreement with FINRA and 

various multi-party Rule 17d–2 Agreements with 

FINRA and other national securities exchanges that 

trade options (e.g., Rule 17d–2 Agreements 

governing options sales practice and options 

position limits) and to national market systems 

plans with the other national securities exchanges 

that trade options (e.g., the national market system 

plan that governs options insider trading for which 

FINRA is the current plan processor). 

14See supra note 9. 

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

16 15 U.S.C. 78f(b)(5). 

17 Id. 

18See supra note 5. 

19See supra note 9. 

20FINRA currently conducts certain surveillances 

on behalf of the Exchange pursuant to a regulatory 

services agreement. To the extent that FINRA may 

conduct any surveillances on behalf of the 

Exchange pursuant to the regulatory services 

agreement (which surveillances may vary over 

time), the Exchange is responsible for FINRA’s 

performance under the regulatory services 

agreement. The Exchange is also a party to a 

bilateral Rule 17d–2 Agreement with FINRA and 

various multi-party Rule 17d–2 Agreements with 

FINRA and other national securities exchanges that 

trade options (e.g., Rule 17d–2 Agreements 

governing options sales practice and options 

position limits) and to national market systems 

plans with the other national securities exchanges 

that trade options (e.g., the national market system 

plan that governs options insider trading for which 

FINRA is the current plan processor). 

21See supra note 9. 

behalf of the Exchange.13 Those 

surveillances are designed to detect 

violations of Exchange rules and 

applicable federal securities laws. The 

Exchange represents that those 

surveillances are adequate to reasonably 

monitor Exchange trading of options on 

IPO’d securities in all trading sessions 

and to reasonably deter and detect 

violations of Exchange rules and federal 

securities laws applicable to trading on 

the Exchange.14 As such, the Exchange 

believes that its existing surveillance 

technologies and procedures, coupled 

with NYSE American’s findings related 

to the IPOs reviewed as described 

herein, adequately address potential 

concerns regarding possible 

manipulation or price stability. 

2. Statutory Basis 

The Exchange believes 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.15 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 16 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) 17 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

the proposed change would facilitate 

options transactions and would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, which 

would, in turn, protect investors and the 

public interest by providing an avenue 

for options on IPO’d securities to come 

to market earlier. The Exchange notes 

that the three-day look back period 

helps ensure that options on underlying 

securities may be listed and traded in a 

timely manner while also allowing time 

for OCC to accommodate the 

certification request. However, there are 

certain large IPOs that issue high-priced 

securities—well above the $3.00 per 

share threshold—that would obviate the 

need for the three-day lookback period. 

As noted above, NYSE American noted 

that it reviewed trading data for IPO’d 

securities dating back to 2017 and was 

unaware of an IPO’d security with a 

market capitalization of $3 billion or 

more (based upon the offering price of 

its IPO) that subsequently would have 

failed to qualify for listing and trading 

as options under the three-day lookback 

requirement.18 The Exchange believes 

that the proposed amendment, which 

the Exchange expects to be harmonized 

across options exchanges, would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system by 

providing an avenue for investors to 

hedge their interest in IPO investments 

in a shorter amount of time than what 

is currently permitted. The Exchange 

believes that options serve as a valuable 

tool to the trading community and help 

markets function efficiently by 

mitigating risk. To that end, the 

Exchange believes that the absence of 

options in the early days after an IPO 

may heighten volatility to IPO’d 

securities.19

Further, as noted herein, the 

Exchange believes the proposed change 

would allow options on IPO’d securities 

to come to market sooner without 

sacrificing investor protection. The 

Exchange represents that trading in 

options on IPO’d securities—like all 

other options traded on the Exchange— 

is subject to surveillances administered 

by the Exchange and/or FINRA on 

behalf of the Exchange.20 Those 

surveillances are designed to detect 

violations of Exchange rules and 

applicable federal securities laws. The 

Exchange represents that those 

surveillances are adequate to reasonably 

monitor Exchange trading of options on 

IPO’d securities in all trading sessions 

and to reasonably deter and detect 

violations of Exchange rules and federal 

securities laws applicable to trading on 

the Exchange.21 As such, the Exchange 

believes that its existing surveillance 

technologies and procedures, coupled 

with NYSE American’s findings related 

to the IPOs reviewed as described 

herein, adequately address potential 

concerns regarding possible 

manipulation or price stability. 

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 

Exchange expects other options 

exchanges will adopt substantively 

similar proposals, such that there would 

be no burden on intermarket 

competition from the Exchange’s 

proposal. Accordingly, the proposed 

change is not meant to affect 

competition among the options 

exchanges. For these reasons, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment and does not impose any 

undue burden on intermarket 

competition. 

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 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Notices 62129 

22 15 U.S.C. 78s(b)(3)(A). 

23 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change, along with a brief 

description and text of 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. 

24 17 CFR 240.19b–4(f)(6). 

25 17 CFR 240.19b–4(f)(6)(iii). 

26For 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). 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3References herein to Phlx Rules in the 3000 

Series shall mean Rules in Phlx Equity 4. 

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 22 and Rule 19b– 

4(f)(6) 23 thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 24 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),25 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposed 

rule change may become operative upon 

filing. The Exchange requested the 

waiver, stating its desire to harmonize 

its rules to those of NYSE American to 

ensure fair competition among the 

options exchanges. Further, the 

proposed change would allow options 

on IPO’d securities to come to market 

sooner (i.e., at least two business days 

post-IPO not inclusive of the day of the 

IPO) without sacrificing investor 

protection. 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.26

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– 

CBOE–2023–043 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–CBOE–2023–043. 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–CBOE–2023–043 and should be 

submitted on or before September 29, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19355 Filed 9–7–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No, 34–98280; File No. SR–PHLX– 

2023–40] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing of 

Proposed Rule Change To Amend 

Equity 4, Rules 3301A and 3301B To 

Establish New ‘‘Contra Midpoint Only’’ 

and ‘‘Contra Midpoint Only With PostOnly’’ Order Types and To Make Other 

Corresponding Changes to the 

Rulebook 

September 1, 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 August 

28, 2023, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) 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 Exchange. 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 

Equity 4, Rules 3301A and 3301B3 to 

establish new ‘‘Contra Midpoint Only’’ 

and ‘‘Contra Midpoint Only with PostOnly’’ Order Types, and to make other 

corresponding changes to the Rulebook. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

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 


lotter on DSK11XQN23PROD with NOTICES1