[Federal Register Volume 88, Number 177 (Thursday, September 14, 2023)]
[Notices]
[Pages 63160-63165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19845]


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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 ``non-controversial'' 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.
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    \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).
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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.

[[Page 63161]]

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\
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    \5\ See Securities Exchange Act Release No. 95445 (August 9, 
2022), 87 FR 49884 (August 12, 2022) (SR-MEMX-2022-010).
    \6\ See 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).
    \7\ Currently, the Exchange plans to launch MEMX Options in 
September 2023.
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    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):
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    \8\ The Exchange proposes to list the two front months for Short 
Term Option Daily Expirations.

    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

[[Page 63162]]

Term Option Daily Expirations would be subject to this 
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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\
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    \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.
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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.
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    \10\ See Rule 19.5, Interpretation and Policy .05(e)
    \11\ See id.
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    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.
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    \12\ See Rule 19.5, Interpretation and Policy .05(a).
    \13\ See id.
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    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

[[Page 63163]]

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.
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    \14\ While 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.
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    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.
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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ Id.
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    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 Market-Makers 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.
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    \18\ Market-Makers are required to quote a specified time in 
their assigned options series. See Rule 22.6.
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    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

[[Page 63164]]

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\
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    \19\ See supra note 6.
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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.
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    \20\ See supra note 18.
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    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.
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    \21\ See 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).
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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\
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    \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.
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    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\
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    \24\ 17 CFR 240.19b-4(f)(6).
    \25\ 17 CFR 240.19b-4(f)(6)(iii).
    \26\ See supra note 6.
    \27\ For 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).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if

[[Page 63165]]

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

    <bullet> Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#dba9aeb7bef6b8b4b6b6beb5afa89ba8beb8f5bcb4ad"><span class="__cf_email__" data-cfemail="80f2f5ece5ade3efedede5eef4f3c0f3e5e3aee7eff6">[email protected]</span></a>. Please include 
file number SR-MEMX-2023-19 on the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-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.
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    \28\ 17 CFR 200.30-3(a)(12), (59).

    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


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