64010 Federal Register / Vol. 88, No. 179 / Monday, September 18, 2023 / Notices 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act,13 and Rule 

19b–4(f)(2) 14 thereunder. 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 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– 

EMERALD–2023–23 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–EMERALD–2023–23. 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–EMERALD–2023–23 and should be 

submitted on or before October 10, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–20083 Filed 9–15–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98357; File No. SR– 

CboeEDGX–2023–056] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Rule 

19.3 (Criteria for Underlying Securities) 

To Accelerate the Listing of Options on 

Certain IPOs 

September 12, 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 

September 1, 2023, Cboe EDGX 

Exchange, Inc. (the ‘‘Exchange’’ or 

‘‘EDGX’’) 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 EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe EDGX Options’’) 

proposes to amend Rule 19.3. The text 

of the proposed rule change is provided 

below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe EDGX Exchange, Inc. 

* * * * * 

Rule 19.3. Criteria for Underlying 

Securities 

(a) No change. 

(b) In addition, the Exchange shall from 

time to time establish standards to be 

considered in evaluating potential 

underlying securities for EDGX Options 

options transactions. There are many relevant 

factors which must be considered in arriving 

at such a determination, and the fact that a 

particular security may meet the standards 

established by the Exchange does not 

necessarily mean that it will be selected as 

an underlying security. The Exchange may 

give consideration to maintaining diversity 

among various industries and issuers in 

selecting underlying securities. 

Notwithstanding the foregoing, an underlying 

security will not be selected unless: 

(1)–(4) No change. 

(5) Either: 

(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 Clearing 

Corporation for listing and trading, as 

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; or 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, and at the Commission’s 

Public Reference Room. 


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Federal Register / Vol. 88, No. 179 / Monday, September 18, 2023 / Notices 64011 

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 19.3(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. 

6See Exchange Rule 19.3(b)(5)(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 

19.3(b)(5)(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 19.3(b)(5)(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. 11 

10See supra note 3. 

11 Id. 

12 Id. 

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 amend 

Rule 19.3. 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 19.3(b)(5) 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 19.3(b)(5)(A) 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 


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64012 Federal Register / Vol. 88, No. 179 / Monday, September 18, 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).15 

14See supra note 7. 

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

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

17 Id. 

18See supra note 3. 

19See supra note 7. 

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).22 

21See supra note 7. 

other options traded on the Exchange— 

is subject to surveillances administered 

by the Exchange and/or FINRA on 

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 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 179 / Monday, September 18, 2023 / Notices 64013 

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. 

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 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– 

CboeEDGX–2023–056 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–CboeEDGX–2023–056. 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–CboeEDGX–2023–056 and should be 

submitted on or before October 10, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–20079 Filed 9–15–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98358; File No. SR– 

CboeBZX–2023–064] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Rule 

19.3 (Criteria for Underlying Securities) 

to Accelerate the Listing of Options on 

Certain IPOs 

September 12, 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 

September 1, 2023, 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 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 BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe BZX Options’’) 

proposes to amend Rule 19.3. The text 

of the proposed rule change is provided 

below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe BZX Exchange, Inc. 

* * * * * 

Rule 19.3. Criteria for Underlying 

Securities 

(a) No change. 

(b) In addition, the Exchange shall from 

time to time establish standards to be 

considered in evaluating potential 

underlying securities for BZX Options 

options transactions. There are many relevant 

factors which must be considered in arriving 

at such a determination, and the fact that a 

particular security may meet the standards 

established by the Exchange does not 

necessarily mean that it will be selected as 


lotter on DSK11XQN23PROD with NOTICES1