63160 Federal Register / Vol. 88, No. 177 / Thursday, September 14, 2023 / Notices 

27 15 U.S.C. 78s(b)(3)(A). 

28 17 CFR 240.19b–4(f). 29 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

FICC has not received or solicited any 

written comments relating to this 

proposal. If any written comments are 

received, FICC will amend this filing to 

publicly file such comments as an 

Exhibit 2 to this filing, as required by 

Form 19b–4 and the General 

Instructions thereto. 

Persons submitting written comments 

are cautioned that, according to Section 

IV (Solicitation of Comments) of the 

Exhibit 1A in the General Instructions to 

Form 19b–4, the Commission does not 

edit personal identifying information 

from comment submissions. 

Commenters should submit only 

information that they wish to make 

available publicly, including their 

name, email address, and any other 

identifying information. 

All prospective commenters should 

follow the Commission’s instructions on 

How to Submit Comments, available at 

www.sec.gov/regulatory-actions/how-tosubmit-comments. General questions 

regarding the rule filing process or 

logistical questions regarding this filing 

should be directed to the Main Office of 

the Commission’s Division of Trading 

and Markets at tradingandmarkets@

sec.gov or 202–551–5777. 

FICC reserves the right to not respond 

to any comments received. 

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) 27 of the Act and paragraph 

(f) 28 of Rule 19b–4 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. 

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– 

FICC–2023–013 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to file 

number SR–FICC–2023–013. 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 NSCC 

and on DTCC’s website (http://

dtcc.com/legal/sec-rule-filings.aspx). 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–FICC–2023–013 and 

should be submitted on or before 

October 5, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19843 Filed 9–13–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98338; File No. SR–MEMX– 

2023–19] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the Short Term 

Option Series Program in Rule 19.5, 

Interpretation and Policy .05 and a 

Related Definition in Rule 16.1 

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

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 the 

Short Term Option Series Program in 

MEMX Rule 19.5, Interpretation and 

Policy .05 and a related definition in 

Rule 16.1. 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. 


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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. 96313 

(November 15, 2022), 87 FR 70869 (November 21, 

2022) (SR–CboeBZX–2022–056); 96320 (November 

15, 2022), 87 FR 70880 (November 21, 2022) (SR– 

CboeEDGX–2022–051); see also Securities 

Exchange Act Release No. 96281 (November 9, 

2022), 87 FR 68769 (November 16, 2022) (SR–ISE– 

2022–18). 

7Currently, the Exchange plans to launch MEMX 

Options in September 2023. 

8The Exchange proposes to list the two front 

months for Short Term Option Daily Expirations. 

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 the Short Term 

Option Series Program in Rule 19.5, 

Interpretation and Policy .05, and 

amend the definition of Short Term 

Option Series in Rule 16.1. 

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 proposes to 

amend the Short Term Option Series 

Program to: (i) limit the number of Short 

Term Option Expiration Dates for 

options on SPDR S&P 500 ETF Trust 

(SPY), the INVESCO QQQ TrustSM, 

Series 1 (QQQ), and iShares Russell 

2000 ETF (IWM) from five to two 

expirations for Monday and Wednesday 

expirations; and (ii) expand the Short 

Term Option Series program to permit 

the listing and trading of options series 

with Tuesday and Thursday expirations 

for options on SPY and QQQ listed 

pursuant to the Short Term Option 

Series Program, subject to the same 

proposed limitation of two expirations. 

The Exchange also proposes to amend 

the definition of Short Term Option 

Series in Rule 16.1. 

Curtail Short Term Option Expiration 

Dates 

Currently, after an option class has 

been approved for listing and trading on 

the Exchange, the Exchange may open 

for trading on any Thursday or Friday 

that is a business day (‘‘Short Term 

Option Opening Date’’) series of options 

on that class that expire at the close of 

business on each of the next five Fridays 

that are business days and are not 

Fridays on which monthly options 

series or Quarterly Options Series expire 

(‘‘Short Term Option Expiration Dates’’). 

The Exchange may have no more than 

a total of five Short Term Option 

Expiration Dates not including any 

Monday or Wednesday SPY, QQQ, and 

IWM Expirations. Further, if the 

Exchange is not open for business on 

the respective Thursday or Friday, the 

Short Term Option Opening Date will 

be the first business day immediately 

prior to that respective Thursday or 

Friday. Similarly, if the Exchange is not 

open for business on a Friday, the Short 

Term Option Expiration Date will be the 

first business day immediately prior to 

that Friday. 

Today, with respect to Wednesday 

SPY, QQQ, and IWM Expirations, the 

Exchange may open for trading on any 

Tuesday or Wednesday that is a 

business day series of options on SPY, 

QQQ, and IWM to expire on any 

Wednesday of the month that is a 

business day and is not a Wednesday in 

which Quarterly Options Series expire 

(‘‘Wednesday SPY Expirations,’’ 

‘‘Wednesday QQQ Expirations,’’ and 

‘‘Wednesday IWM Expirations’’). With 

respect to Monday SPY, QQQ, and IWM 

Expirations, the Exchange may open for 

trading on any Friday or Monday that is 

a business day series of options on the 

SPY, QQQ, or IWM to expire on any 

Monday of the month that is a business 

day and is not a Monday in which 

Quarterly Options Series expire 

(‘‘Monday SPY Expirations,’’ ‘‘Monday 

QQQ Expirations,’’ and ‘‘Monday IWM 

Expirations’’), provided that Monday 

SPY Expirations, Monday QQQ 

Expirations, and Monday IWM 

Expirations that are listed on a Friday 

must be listed at least one business 

week and one business day prior to the 

expiration. The Exchange may list up to 

five consecutive Wednesday SPY 

Expirations, Wednesday QQQ 

Expirations, and Wednesday IWM 

Expirations and five consecutive 

Monday SPY Expirations, Monday QQQ 

Expirations, and Monday IWM 

Expirations at one time; the Exchange 

may have no more than a total of five 

each of Wednesday SPY Expirations, 

Wednesday QQQ Expirations, and 

Wednesday IWM Expirations and a total 

of five each of Monday SPY Expirations, 

Monday QQQ Expirations, and Monday 

IWM Expirations. Monday and 

Wednesday SPY Expirations, Monday 

and Wednesday QQQ Expirations, and 

Monday and Wednesday IWM 

Expirations will be subject to the 

provisions of Rule 19.5, Interpretation 

and Policy .05. 

Proposal 

At this time, the Exchange proposes to 

curtail the number of Short Term 

Option Expiration Dates from five to 

two 8 for Monday and Wednesday 

Expirations in SPY, QQQ and IWM, as 

well as the proposed Tuesday and 

Thursday Expirations in SPY and QQQ 

(‘‘Short Term Option Daily 

Expirations’’). The Exchange proposes 

to create a new category of Short Term 

Option Expiration Dates called ‘‘Short 

Term Option Daily Expirations,’’ which 

will only permit two Short Term Option 

Expiration Dates for each of the 

Monday, Tuesday, Wednesday, and 

Thursday expirations at any one time. 

The Exchange proposes to include a 

table, labelled ‘‘Table 1’’, within Rule 

19.5, Interpretation and Policy .05(h), 

which specifies each symbol which 

qualifies as a Short Term Option Daily 

Expiration. The table would note the 

number of expirations for each symbol 

as well as expiration days. The 

Exchange proposes to include Monday 

and Wednesday expirations for SPY, 

QQQ, and IWM and Tuesday and 

Thursday expirations for SPY and QQQ 

and list the number of expirations as 

‘‘2’’ for these symbols. The Exchange’s 

proposal to permit Tuesday and 

Thursday expirations for options on 

SPY and QQQ listed pursuant to the 

Short Term Option Series Program is 

explained below in more detail. In the 

event Short Term Option Daily 

Expirations expire on the same day in 

the same class as a monthly options 

series or a Quarterly Options Series, the 

Exchange would skip that week’s listing 

and instead list the following week; the 

two weeks of Short Term Option 

Expiration Dates would therefore not be 

consecutive. Specifically, the Exchange 

proposes to state within Rule 19.5, 

Interpretation and Policy .05(h): 

In addition to the above, the Exchange may 

open for trading series of options on the 

symbols provided in Table 1 below that 

expire at the close of business on each of the 

next two Mondays, Tuesdays, Wednesdays, 

and Thursdays, respectively, that are 

business days beyond the current week and 

are not business days on which monthly 

options series or Quarterly Options Series 

expire (‘‘Short Term Option Daily 

Expirations’’). The Exchange may have no 

more than a total of two Short Term Option 

Daily Expirations beyond the current week 

for each of Monday, Tuesday, Wednesday, 

and Thursday expirations at one time. Short 


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63162 Federal Register / Vol. 88, No. 177 / Thursday, September 14, 2023 / Notices 

9 Defining the term ‘‘Short Term Option 

Expiration Dates’’ will make clear that this term 

includes expiration dates for each day Short Term 

Options are listed. 

10See Rule 19.5, Interpretation and Policy .05(e) 

11See id. 

12See Rule 19.5, Interpretation and Policy .05(a). 

13See id. 

Term Option Daily Expirations would be 

subject to this Interpretation and Policy .05. 

SPY, QQQ, and IWM Friday 

expirations and other option symbols 

expiring on a Friday that are not noted 

in Table 1 will continue to have a total 

of five Short Term Option Expiration 

Dates, provided those Friday expirations 

are not Fridays on which monthly 

options series or Quarterly Options 

Series expire (‘‘Friday Short Term 

Option Expiration Dates’’). These 

expirations would be referred to as 

‘‘Short Term Option Weekly 

Expirations’’ to distinguish them from 

the proposed expirations that would be 

subject to Short Term Option Daily 

Expirations. The Exchange proposes to 

add rule text to Rule 19.5, Interpretation 

and Policy .05(h) which states that 

Monday Short Term Option Expiration 

Dates, Tuesday Short Term Option 

Expiration Dates, Wednesday Short 

Term Option Expiration Dates, and 

Thursday Short Term Option Expiration 

Dates, together with Friday Short Term 

Option Expiration Dates, are collectively 

‘‘Short Term Option Expiration Dates.’’ 9

Tuesday and Thursday Expirations 

At this time, the Exchange proposes to 

expand the Short Term Option Series 

Program for Short Term Option Daily 

Expirations on Tuesday (‘‘Tuesday 

Short Term Option Daily Expirations) 

and Short Term Option Daily 

Expirations on Thursday (‘‘Thursday 

Short Term Option Daily Expirations’’). 

No more than a total of two Tuesday 

Short Term Option Daily Expirations or 

Thursday Short Term Option Daily 

Expirations in SPY and QQQ will be 

listed at any one time beyond the 

current week. Tuesday and Thursday 

Short Term Option Daily Expirations 

would be subject to Rule 19.5, 

Interpretation and Policy .05. 

A Short Term Option Series means a 

series in an option class that is 

approved for listing and trading on the 

Exchange in which the series is opened 

for trading on any Monday, Tuesday, 

Wednesday, Thursday, or Friday that is 

a business day and that expires on the 

Monday, Wednesday, or Friday of the 

following business week that is a 

business day, or, in the case of a series 

that is listed on a Friday and expires on 

a Monday, is listed one business week 

and one business day prior to that 

expiration. If a Tuesday, Wednesday, 

Thursday or Friday is not a business 

day, the series may be opened (or shall 

expire) on the first business day 

immediately prior to that Tuesday, 

Wednesday, Thursday or Friday. For a 

series listed pursuant to this section for 

Monday expiration, if a Monday is not 

a business day, the series shall expire on 

the first business day immediately 

following that Monday. 

The Exchange proposes to amend this 

definition in Rule 16.1 to accommodate 

the listing of options series that expire 

on Tuesdays and Thursdays. 

Specifically, the Exchange proposes to 

add Tuesday and Thursdays to the 

permitted expiration days, which 

currently include Monday, Wednesday, 

and Friday, that it may open for trading. 

The Exchange also proposes 

corresponding changes within Rule 

19.5, Interpretation and Policy .05, 

which sets forth the requirements for 

SPY and QQQ options that are listed 

pursuant to the Short Term Option 

Series Program as Short Term Option 

Daily Expirations, to accommodate the 

listing of options series that expire on 

Tuesdays and Thursdays. 

Similar to Monday and Wednesday 

SPY, QQQ, and IWM Short Term Option 

Daily Expirations within Rule 19.5, 

Interpretation and Policy .05, the 

Exchange proposes that it may open for 

trading on any Monday or Tuesday that 

is a business day series of options on the 

symbols provided in Table 1 that expire 

at the close of business on each of the 

next two Tuesdays beyond the current 

week that are business days and are not 

business days in which monthly options 

series or Quarterly Options Series expire 

(‘‘Tuesday Short Term Option 

Expiration Date’’). 

Likewise, the Exchange proposes that 

it may open for trading on any 

Wednesday or Thursday that is a 

business day series of options on 

symbols provided in Table 1 that expire 

at the close of business on each of the 

next two Thursdays that are business 

days and are not business days in which 

monthly options series or Quarterly 

Options Series expire (‘‘Thursday Short 

Term Option Expiration Date’’). 

In the event that options on SPY and 

QQQ expire on a Tuesday or Thursday 

and that Tuesday or Thursday is the 

same day that a monthly option series 

or Quarterly Options Series expires, the 

Exchange would skip that week’s listing 

and instead list the following week; the 

two weeks would therefore not be 

consecutive. Today, Monday and 

Wednesday Expirations in SPY, QQQ, 

and IWM skip the weekly listing in the 

event the weekly listing expires on the 

same day in the same class as a 

Quarterly Options Series. Currently, 

there is no rule text provision that states 

that Monday and Wednesday 

Expirations in SPY, QQQ, and IWM skip 

the weekly listing in the event the 

weekly listing expires on the same day 

in the same class as a monthly option 

series. Practically speaking, Monday 

and Wednesday Expirations in SPY, 

QQQ, and IWM would not expire on the 

same day as a monthly expiration. 

The interval between strike prices for 

the proposed Tuesday and Thursday 

SPY and QQQ Short Term Option Daily 

Expirations will be the same as those for 

the current Short Term Option Series for 

Monday, Wednesday, and Friday 

expirations applicable to the Short Term 

Option Series Program.10 Specifically, 

the Tuesday and Thursday SPY and 

QQQ Short Term Option Daily 

Expirations will have a $0.50 strike 

interval minimum.11 As is the case with 

other equity options series listed 

pursuant to the Short Term Option 

Series Program, the Tuesday and 

Thursday SPY and QQQ Short Term 

Option Daily Expiration series will be 

P.M.-settled. 

Pursuant to proposed Rule 19.5, 

Interpretation and Policy .05, with 

respect to the Short Term Option Series 

Program, a Tuesday or Thursday 

expiration series will expire on the first 

business day immediately prior to that 

Tuesday or Thursday, e.g., Monday or 

Wednesday of that week, respectively, if 

the Tuesday or Thursday is not a 

business day. 

Currently, for each option class 

eligible for participation in the Short 

Term Option Series Program, the 

Exchange is limited to opening thirty 

(30) series for each expiration date for 

the specific class.12 The thirty (30) 

series restriction does not include series 

that are open by other securities 

exchanges under their respective weekly 

rules; the Exchange may list these 

additional series that are listed by other 

options exchanges.13 This thirty (30) 

series restriction would apply to 

Tuesday and Thursday SPY and QQQ 

Short Term Option Daily Expiration 

series as well. In addition, the Exchange 

will be able to list series that are listed 

by other exchanges, assuming they file 

similar rules with the Commission to 

list SPY and QQQ options expiring on 

Tuesdays and Thursdays with a limit of 

two Tuesday Short Term Daily 

Expirations and two Thursday Short 

Term Daily Expirations beyond the 

current week. 

Finally, the Exchange is amending 

Rule 19.5, Interpretation and Policy 

.05(b) to conform the rule text to the 

usage of the term ‘‘Short Term Option 


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14While the Exchange proposes to add rule text 

within Rule 19.5, Interpretation and Policy .05 with 

respect to Monday Expirations, Tuesday 

Expirations, and Wednesday Expirations stating 

that those expirations would not expire on business 

days on which monthly options series expire, 

practically speaking this would not occur. 

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

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

17 Id. 

18Market-Makers are required to quote a specified 

time in their assigned options series. See Rule 22.6. 

Daily Expirations.’’ Today, with the 

exception of Monday and Wednesday 

SPY Expirations, Monday and 

Wednesday QQQ Expirations, and 

Monday and Wednesday IWM 

Expirations, no Short Term Option 

Series may expire in the same week in 

which monthly option series on the 

same class expire. With this proposal, 

Tuesday and Thursday SPY Expirations 

and Tuesday and Thursday QQQ 

Expirations would be treated similarly 

to existing Monday and Wednesday 

SPY, QQQ, and IWM Expirations. With 

respect to monthly option series, 

Short Term Option Daily Expirations 

will be permitted to expire in the same 

week in which monthly option series on 

the same class expire. Not listing Short 

Term Option Daily Expirations for one 

week every month because there was a 

monthly on that same class on the 

Friday of that week would create 

investor confusion. Further, as with 

Monday and Wednesday SPY, QQQ, 

and IWM Expirations, the Exchange 

would not permit Tuesday and 

Thursday Short Term Option Daily 

Expirations to expire on a business day 

in which monthly options series or 

Quarterly Options Series expire.14

Therefore, all Short Term Option Daily 

Expirations would expire at the close of 

business on each of the next two 

Mondays, Tuesdays, Wednesdays, and 

Thursdays, respectively, that are 

business days and are not business days 

on which monthly options series or 

Quarterly Options Series expire. 

The Exchange believes that it is 

reasonable to not permit two expirations 

on the same day in which a monthly 

options series or a Quarterly Options 

Series would expire. 

The Exchange does not believe that 

any market disruptions will be 

encountered with the introduction of 

P.M.-settled Tuesday and Thursday 

Short Term Option Daily Expirations, as 

other Exchanges have already adopted 

identical rules, and the Exchange will 

have surveillance programs in place to 

support and properly monitor trading in 

Short Term Option Series that expire 

Monday and Wednesday for SPY, QQQ 

and IWM. 

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.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. 

The proposal is consistent with the 

Act as the overall reduction offered by 

this proposal reduces the number of 

Short Term Option Expirations to be 

listed on the Exchange. This reduction 

would remove impediments to and 

perfect the mechanism of a free and 

open market by encouraging MarketMakers to continue to deploy capital 

more efficiently and improve displayed 

market quality.18 Also, the Exchange’s 

proposal curtails the number of 

Monday, Tuesday, Wednesday, and 

Thursday expirations in SPY, QQQ, and 

IWM without reducing the classes of 

options available for trading on the 

Exchange. The Exchange believes that 

despite the proposed curtailment of 

expirations, Members will be able to 

expand hedging tools and tailor their 

investment and hedging needs more 

effectively in SPY, QQQ, and IWM. 

Similar to SPY, QQQ, and IWM 

Monday and Wednesday Expirations 

(proposed to be SPY, QQQ and IWM 

Monday and Wednesday Short Term 

Daily Expirations), the introduction of 

SPY and QQQ Tuesday and Thursday 

Short Term Daily Expirations is 

consistent with the Act as it will, among 

other things, expand hedging tools 

available to market participants and 

continue the reduction of the premium 

cost of buying protection. The Exchange 

believes that SPY and QQQ Tuesday 

and Thursday expirations (proposed to 

be SPY and QQQ Tuesday and 

Thursday Short Term Daily Expirations) 

will allow market participants to 

purchase SPY and QQQ options based 

on their timing as needed and allow 

them to tailor their investment and 

hedging needs more effectively. Further, 

the proposal to permit Tuesday and 

Thursday Short Term Daily Expirations 

for options on SPY and QQQ listed 

pursuant to the Short Term Option 

Series Program, subject to the proposed 

limitation of two expirations, would 

protect investors and the public interest 

by providing the investing public and 

other market participants more 

flexibility to closely tailor their 

investment and hedging decisions in 

SPY and QQQ options, thus allowing 

them to better manage their risk 

exposure. 

In particular, the Exchange believes 

the Short Term Option Series Program 

as implemented by other exchanges has 

been successful to date and that 

Tuesday and Thursday SPY and QQQ 

Short Term Daily Expirations should 

simply expand the ability of investors to 

hedge risk against market movements 

stemming from economic releases or 

market events that occur throughout the 

month in the same way that the Short 

Term Option Series Program has 

expanded the landscape of hedging. 

Similarly, the Exchange believes 

Tuesday and Thursday SPY and QQQ 

Short Term Daily Expirations should 

create greater trading and hedging 

opportunities and flexibility and will 

provide customers with the ability to 

tailor their investment objectives more 

effectively. 

Today, with the exception of Monday 

and Wednesday SPY Expirations, 

Monday and Wednesday QQQ 

Expirations, and Monday and 

Wednesday IWM Expirations, no Short 

Term Option Series may expire in the 

same week in which monthly option 

series on the same class expire. With 

this proposal, Tuesday and Thursday 

SPY Expirations and Tuesday and 

Thursday QQQ Expirations would be 

treated similarly to existing Monday and 

Wednesday SPY, QQQ, and IWM 

Expirations. The Exchange believes that 

permitting Short Term Option Daily 

Expirations to expire in the same week 

that standard monthly options expire on 

Fridays is consistent with the Act. Not 

listing Short Term Option Daily 

Expirations for one week every month 

because there was a monthly on that 

same class on the Friday of that week 

would create investor confusion. 

Further, as with Monday and 

Wednesday SPY, QQQ, and IWM 

Expirations, the Exchange would not 

permit Tuesday and Thursday Short 

Term Option Daily Expirations to expire 

on a business day in which monthly 


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63164 Federal Register / Vol. 88, No. 177 / Thursday, September 14, 2023 / Notices 

19See supra note 6. 

20See supra note 18. 

21See Securities and Exchange Act Release No. 

96281 (November 9, 2022) (SR–ISE–2022–18); See 

also Securities Exchange Act Release Nos. 96313 

(November 15, 2022), 87 FR 70869 (November 21, 

2022) (SR–CboeBZX–2022–056) and 96320 

(November 15, 2022), 87 FR 70880 (November 21, 

2022) (SR–CboeEDGX–2022–051). 

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

23 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. 

24 17 CFR 240.19b–4(f)(6). 

25 17 CFR 240.19b–4(f)(6)(iii). 

26See supra note 6. 

27For 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). 

options series or Quarterly Options 

Series expire. Therefore, all Short Term 

Option Daily Expirations would expire 

at the close of business on each of the 

next two Mondays, Tuesdays, 

Wednesdays, and Thursdays, 

respectively, that are business days and 

are not business days in which monthly 

options series or Quarterly Options 

Series expire. The Exchange believes 

that it is consistent with the Act to not 

permit two expirations on the same day 

in which a monthly options series or a 

Quarterly Options Series would expire 

similar to Monday and Wednesday SPY, 

QQQ, and IWM Expirations. 

There are no material differences in 

the treatment of Wednesday SPY and 

QQQ expirations for Short Term Option 

Series as compared to the proposed 

Tuesday and Thursday SPY and QQQ 

Short Term Daily Expirations. Given the 

similarities between Wednesday SPY, 

QQQ and IWM Expirations and the 

proposed Tuesday and Thursday SPY 

and QQQ Short Term Daily Expirations, 

the Exchange believes that applying the 

provisions in Rule 19.5, Interpretation 

and Policy .05 that will apply to 

Wednesday SPY, QQQ and IWM 

Expirations to Tuesday and Thursday 

SPY and QQQ Short Term Daily 

Expirations is justified. 

The Exchange further represents that 

it has an adequate surveillance program 

in place to detect manipulative trading 

in the proposed Tuesday and Thursday 

SPY and QQQ Short Term Daily 

Expirations, in the same way that it 

monitors trading in the current Short 

Term Option Series and trading in 

Monday and Wednesday SPY, QQQ, 

and IWM Expirations. The Exchange 

also represents that it has the necessary 

systems capacity to support the new 

options series. 

Finally, as previously noted, the 

proposed rule change is substantively 

the same as a rule change proposed by 

BZX Options and EDGX Options, which 

the Commission approved in 2022.19

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 proposal 

will provide an overall reduction in the 

number of Short Term Option 

Expirations to be listed on the 

Exchange. The Exchange believes this 

reduction will not impose an undue 

burden on competition, rather, it should 

encourage Market- Makers to continue 

to deploy capital more efficiently and 

improve displayed market quality.20

Also, the Exchange’s proposal curtails 

the number of weekly expirations in 

SPY, QQQ, and IWM without reducing 

the classes of options available for 

trading on the Exchange. The Exchange 

believes that despite the proposed 

curtailment of weekly expirations, 

Members will be able to expand hedging 

tools and tailor their investment and 

hedging needs more effectively in SPY, 

QQQ, and IWM. 

Similar to SPY, QQQ and IWM 

Monday and Wednesday Expirations, 

the Exchange believes the introduction 

of SPY and QQQ Tuesday and Thursday 

Short Term Daily Expirations will not 

impose an undue burden on 

competition. The Exchange believes that 

it will, among other things, expand 

hedging tools available to market 

participants and continue the reduction 

of the premium cost of buying 

protection. The Exchange believes that 

SPY and QQQ Tuesday and Thursday 

Short Term Daily Expirations will allow 

market participants to purchase SPY 

and QQQ options based on their timing 

as needed and allow them to tailor their 

investment and hedging needs more 

effectively. The Exchange does not 

believe the proposal will impose any 

burden on intermarket competition, as 

other options exchanges have already 

adopted similar rules to list and trade 

Short-Term Option Series with Tuesday 

and Thursday Short Term Daily 

Expirations. Additionally, the 

Commission recently approved a 

substantively identical proposal of 

another exchange and other exchanges 

have filed to modify their rules in a 

similar fashion.21 Further, the Exchange 

does not believe the proposal will 

impose any burden on intramarket 

competition, as all market participants 

will be treated in the same manner 

under this proposal. 

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 22 and Rule 19b– 

4(f)(6) thereunder.23

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 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.26 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 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.27

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 177 / Thursday, September 14, 2023 / Notices 63165 

28 17 CFR 200.30–3(a)(12), (59). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See NYSE American Rule 900.2NY Definitions. 

5The Exchange has announced that, pending 

regulatory approval, it will begin migrating 

Exchange-listed options to Pillar on October 23, 

2023, available here: https://www.nyse.com/traderupdate/history#110000530919. See also, e.g., 

Securities Exchange Act Release Nos. 97297 (April 

13, 2023), 88 FR 24225 (April 19, 2023) (SR– 

NYSEAMER–2023–16) (Notice of Filing and 

Immediate Effectiveness of Proposed Change to 

Modify Rule 900.2NY and to Adopt New Rules 

964NYP, 964.1NYP, and 964.2NYP); 97739 (June 

15, 2023), 88 FR 40893 (June 22, 2023) (SR– 

NYSEAMER–2023–17) (Notice of Filing of 

Amendment No. 1 and Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 1, to Adopt New Exchange Rule 

980NYP and Amend Exchange Rule 935NY); 97869 

(July 10, 2023), 88 FR 45730 (July 17, 2023) (SR– 

NYSEAMER–2023–34) (Notice of Filing and 

Immediate Effectiveness of Proposed New Rules 

900.3NYP, 925.1NYP, 928NYP, 928.1NYP, and 

952NYP and Amendments to Rules 900.3NY, 

925NY, 925.1NY, 928NY, 952NY, 953.1NY, 967NY, 

967.1NY, and 985NY); 97938 (July 18, 2023), 88 FR 

47536 (July 24, 2023) (NYSEAMER–2023–35) 

(Notice of Filing and Immediate Effectiveness of 

Proposed Change for New Rule 971.1NYP). 

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–2023–19 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–2023–19. 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–2023–19 and should be 

submitted on or before October 5, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19845 Filed 9–13–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98332; File No. SR– 

NYSEAMER–2023–43] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify the NYSE American 

Options Fee Schedule 

September 8, 2023. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on August 

29, 2023, NYSE American LLC (‘‘NYSE 

American’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. 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 modify the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’) to provide for certain 

temporary fee changes in connection 

with the Exchange’s migration to the 

Pillar trading platform. The Exchange 

proposes to implement the fee changes 

effective August 29, 2023. The proposed 

rule change is available on the 

Exchange’s website at www.nyse.com, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing to amend 

the Fee Schedule to provide for certain 

temporary changes in connection with 

the Exchange’s migration to a new 

trading platform known as Pillar. 

Currently, the Exchange conducts 

options trading on an electronic 

platform known as ‘‘the Exchange 

System,’’ which refers to the Exchange’s 

electronic order delivery, execution, and 

reporting system for designated option 

issues through which orders and quotes 

of users are consolidated for execution 

and/or display.4 On or about October 

23, 2023, the Exchange anticipates 

beginning the migration of its options 

trading to the Pillar technology 

platform.5


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