Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 68833 

51 15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act 

grants the Commission flexibility to determine what 

type of proceeding—either oral or notice and 

opportunity for written comments—is appropriate 

for consideration of a particular proposal by an 

SRO. See Securities Acts Amendments of 1975, 

Report of the Senate Committee on Banking, 

Housing and Urban Affairs to Accompany S. 249, 

S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). 

52 15 U.S.C. 78s(b)(3)(C). 

53 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3The Exchange proposes to amend Rule 4.5(a) 

and (b) to provide that proposed Rule 4.5(g) will 

describe how the Exchange will fix a specific 

expiration date and exercise price for Monthly 

Option Series and that proposed Rule 4.5(g) will 

govern the procedures for opening Monthly Options 

Series, respectively. This is consistent with 

language in current Rules 4.5(a) and (b) for other 

Short Term Option Series, Quarterly Options Series, 

and Delayed Start Option Series. 

to the concerns identified above as well 

as any other relevant concerns. Such 

comments should be submitted by 

October 25, 2023. Rebuttal comments 

should be submitted by November 8, 

2023. Although there do not appear to 

be any issues relevant to approval or 

disapproval that would be facilitated by 

an oral presentation of views, data, and 

arguments, the Commission will 

consider, pursuant to Rule 19b–4, any 

request for an opportunity to make an 

oral presentation.51

The Commission asks that 

commenters address the sufficiency and 

merit of the Exchange’s statements in 

support of the proposal, in addition to 

any other comments they may wish to 

submit about the proposed rule change. 

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– 

CboeBZX–2023–067 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–CboeBZX–2023–067. 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–CboeBZX–2023–067 and should be 

submitted on or before October 25, 

2023. Rebuttal comments should be 

submitted by November 8, 2023. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(3)(C) of the Act,52 that File 

No. SR–CboeBZX–2023–067, be and 

hereby is, temporarily suspended. In 

addition, the Commission is instituting 

proceedings to determine whether the 

proposed rule change should be 

approved or disapproved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.53

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22009 Filed 10–3–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98593; File No. SR–CBOE– 

2023–049] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of a 

Proposed Rule Change To Amend Its 

Rules To Adopt Monthly Options 

Series 

September 28, 2023. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on 

September 27, 2023, Cboe Exchange, 

Inc. (‘‘Exchange’’ or ‘‘Cboe Options’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

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

or ‘‘Cboe Options’’) proposes to amend 

its Rules to adopt Monthly Options 

Series. The text of the proposed rule 

change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

AboutCBOE/

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

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 its 

Rules to accommodate the listing of 

option series that would expire at the 

close of business on the last business 

day of a calendar month (‘‘Monthly 

Option Series’’). Pursuant to proposed 

Rules 4.5(g)(1) and 4.13(a)(2)(C)(i), the 

Exchange may list Monthly Option 

Series for up to five currently listed 

option classes that are either index 

options or options on exchange-traded 

funds (‘‘ETFs’’).3 In addition, the 

Exchange may also list Monthly Option 

Series on any options classes that are 

selected by other securities exchanges 


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4The Exchange is unaware of any other options 

exchanges that currently have a similar program but 

expect other options exchanges may adopt similar 

programs in the future. 5The Exchange notes this provision considers 

consecutive monthly listings. In other words, as 

other expirations (such as Quarterly Option Series) 

are not counted as part of the maximum, those 

expirations would not be considered when 

considering when the last expiration date would be 

if the maximum number were listed consecutively. 

For example, if it is January 2024 and the Exchange 

lists Quarterly Options Series in class ABC with 

expirations in March, June, September, December, 

and the following March, the Exchange could also 

list Monthly Options Series in class ABC with 

expirations in January, February, April, May, July, 

August, October, and November 2024 and January 

and February of 2025. This is because, if Quarterly 

Option Series, for example, were counted, the 

Exchange would otherwise never be able to list the 

maximum number of Monthly Option Series. This 

is consistent with the listing provisions for 

Quarterly Options Series, which permit give 

calendar quarter expirations. The need to list series 

with the same expiration in the current calendar 

year and the following calendar year (whether 

Monthly or Quarterly expiration) is to allow market 

participants to execute one-year strategies pursuant 

to which they may roll their exposures in the 

longer-dated options (e.g. January 2025) prior to the 

expiration of the nearer-dated option (e.g. January 

2024). 

6See proposed Rules 4.5(g)(2) and 

4.13(a)(2)(C)(ii). 

7See proposed Rule 4.5(g)(3) and 

4.13(a)(2)(C)(iii). 

8See proposed Rule 4.5(g)(4) and 4.13(a)(2)(C)(iv). 

The Exchange notes these proposed provisions are 

consistent with the initial series provision for the 

Quarterly Options Series program in Rule 

4.13(a)(2)(B)(iv). While different than the initial 

strike listing provision for the Quarterly Options 

Series program in current Rule 4.5(e)(4), the 

Exchange believes the proposed provision is 

appropriate, as it contemplates classes that may 

have strike intervals of $5 or greater. For 

consistency, the Exchange also proposes to amend 

Rule 4.5(e)(4) to incorporate the same provision for 

initial series. 

9See proposed Rule 4.5(g)(5) and 4.13(a)(2)(C)(v). 

10See proposed Rule 4.5(g)(6) and 

4.13(a)(2)(C)(vi); see also Rule 4.5, Interpretations 

and Policies .01 and .04–.07 (permissible strike 

prices for ETF classes) and Rules 4.5, 

Interpretations and Policies .06, .09, .10, .12, .13, 

.15 and 4.13, Interpretations and Policies .01, .04, 

.10, and .11 (permissible strike prices for index 

options). 

11The Exchange also proposes to make a 

nonsubstantive change to Rules 4.5(d) and 

4.13(a)(2)(A) to change current references to 

‘‘monthly options series’’ to ‘‘standard expiration 

options series’’ (i.e., series that expire on the third 

Friday of a month), to eliminate potential 

confusion. The current references to ‘‘monthly 

options series’’ are intended to refer to those series 

that expire on the third Friday of a month, which 

are generally referred to in the industry as standard 

expirations. 

12The Exchange notes this would not prevent the 

Exchange from listing a P.M.-settled Monthly 

Options Series on an index with the same 

expiration date as an A.M.-settled Short Term 

Options Series on the same index, both of which 

may expire on a Friday. In other words, the 

Exchange may list a P.M-settled Monthly Options 

Series on an index concurrent with an A.M.-settled 

Short Term Options Series on that index and both 

of which expire on a Friday. The Exchange believes 

this concurrent listing would provide investors 

with yet another hedging mechanism and is 

reasonable given these series would not be identical 

(unlike if they were both P.M-settled). This could 

not occur with respect to ETFs, as all Short Term 

Options Series on ETFs are P.M.-settled. 

that employ a similar program under 

their respective rules.4 The Exchange 

may list 12 expirations for Monthly 

Option Series. Monthly Option Series 

need not be for consecutive months; 

however, the expiration date of a 

nonconsecutive expiration may not be 

beyond what would be considered the 

last expiration date if the maximum 

number of expirations were listed 

consecutively.5 Other expirations in the 

same class are not counted as part of the 

maximum numbers of Monthly Option 

Series expirations for a class.6 Monthly 

Options Series will be P.M.-settled.7

The strike price of each Monthly 

Options Series will be fixed at a price 

per share, with at least two, but no more 

than five, strike prices above and at least 

two, but no more than five, strike prices 

below the value of the underlying index 

or price of the underlying security at 

about the time that a Monthly Options 

Series is opened for trading on the 

Exchange. The Exchange will list strike 

prices for Monthly Options Series that 

are reasonably related to the current 

price of the underlying security or 

current index value of the underlying 

index to which such series relates at 

about the time such series of options is 

first opened for trading on the 

Exchange. The term ‘‘reasonably related 

to the current price of the underlying 

security or index value of the 

underlying index’’ means that the 

exercise price is within 30% of the 

current underlying security price or 

index value.8 Additional Monthly 

Options Series of the same class may be 

open for trading on the Exchange when 

the Exchange deems it necessary to 

maintain an orderly market, to meet 

customer demand, or when the market 

price of the underlying security moves 

substantially from the initial exercise 

price or prices. To the extent that any 

additional strike prices are listed by the 

Exchange, such additional strike prices 

will be within 30% above or below the 

closing price of the underlying index or 

security on the preceding day. The 

Exchange may also open additional 

strike prices of Monthly Option Series 

that are more than 30% above or below 

the current price of the underlying 

security, provided that demonstrated 

customer interest exists for such series, 

as expressed by institutional, corporate, 

or individual customers or their brokers. 

Market-Makers trading for their own 

account will not be considered when 

determining customer interest under 

this provision. The opening of the new 

Monthly Options Series will not affect 

the series of options of the same class 

previously opened.9 The interval 

between strike prices on Monthly 

Options Series will be the same as the 

interval for strike prices for series in 

that same options class that expire in 

accordance with the normal monthly 

expiration cycle.10

By definition, Monthly Option Series 

can never expire in the same week as a 

standard expiration series (which expire 

on the third Friday of a month) in the 

same class expires. The same, however, 

is not the case with regards to Short 

Term Options Series or Quarterly 

Options Series. Therefore, to avoid any 

confusion in the marketplace, the 

Exchange proposes to amend Rules 

4.5(d) and 4.13(a)(2)(A) to provide the 

Exchange will not list a Short Term 

Options Series in a class on a date on 

which a Monthly Options Series or 

Quarterly Options Series expires.11

Similarly, proposed Rules 4.5(g)(2) and 

4.13(a)(2)(C)(ii) provide that no Monthly 

Options Series may expire on a date that 

coincides with an expiration date of a 

Quarterly Options Series in the same 

index or ETF class. In other words, the 

Exchange will not list a Short Term 

Options Series on an index or ETF if a 

Monthly Options Series on that index or 

ETF were to expire on the same date, 

nor will the Exchange list a Monthly 

Options Series on an ETF or index if a 

Quarterly Options Series on that index 

or ETF were to expire on the same date 

to prevent the listing of series with 

concurrent expirations.12

With respect to Monthly Options 

Series added pursuant to proposed 

Rules 4.5(g)(1) through (6) and 

4.13(a)(2)(C)(i) through (iv), the 

Exchange will, on a monthly basis, 

review series that are outside a range of 

five strikes above and five strikes below 

the current price of the underlying 

index or security, and delist series with 

no open interest in both the put and the 

call series having a: (i) strike higher than 

the highest strike price with open 

interest in the put and/or call series for 

a given expiration month; and (ii) strike 

lower than the lowest strike price with 

open interest in the put and/or call 

series for a given expiration month. 

Notwithstanding this delisting policy, 

customer requests to add strikes and/or 

maintain strikes in Monthly Options 

Series in series eligible for delisting will 

be granted. In connection with this 

delisting policy, if the Exchange 

identifies series for delisting, the 

Exchange will notify other options 

exchanges with similar delisting 

policies regarding eligible series for 

delisting and will work with such other 

exchanges to develop a uniform list of 


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13See proposed Rules 4.5(g)(7) and 

4.13(a)(2)(C)(vii). Pursuant to Rule 8.42, exercise 

limits for impacted index and ETF classes would be 

equal to the applicable position limits. 

14See proposed Rules 8.30, Interpretation and 

Policy .09 (regarding position limits for options on 

stocks and ETFs), 8.31(e) (regarding position limits 

for broad-based index options), 8.32(f) (regarding 

position limits for industry index options), 8.33(c) 

(regarding position limits for micro narrow-based 

indexes), and 8.34(c) (regarding position limits for 

individual stock or ETF based volatility index 

options). The Exchange notes the proposed rule 

change adds Interpretation and Policy .09 to Rule 

8.30 to state that with respect to options on stocks 

or ETFs, positions in Short Term Option Series, 

Monthly Options Series, and Quarterly Options 

Series shall be aggregated with positions in options 

contracts on the same underlying security. This is 

currently true with respect to Short Term Option 

Series and Quarterly Options Series but was 

inadvertently omitted from Rule 8.30. 

15The Exchange notes it currently lists quarterly 

expirations on index options pursuant to Rule 

4.13(c) (regarding quarterly index expirations or 

‘‘QIXs’’). 

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

17 15 U.S.C. 78f(b)(5). 

18 Id. 

19Compare proposed Rules 4.5(g) and 

4.13(a)(2)(C) to Rules 4.5(e) and 4.13(a)(2)(B), 

respectively. 

20The Exchange notes the proposed maximum 

number of expirations is consistent with the 

maximum number of expirations permitted for endof-month series in index classes. See Rule 4.13(e)(2) 

(which references Rule 4.13(a)(2), which permits up 

Continued 

series to be delisted, so as to ensure 

uniform series delisting of multiply 

listed Monthly Options Series.13

The Exchange believes that Monthly 

Options Series will provide investors 

with another flexible and valuable tool 

to manage risk exposure, minimize 

capital outlays, and be more responsive 

to the timing of events affecting the 

securities that underlie option contracts. 

The Exchange believes limiting Monthly 

Options Series to five classes will 

ensure the addition of these new series 

will have a negligible impact on the 

Exchange’s and the Options Price 

Reporting Authority’s (‘‘OPRA’s’’) 

quoting capacity. The Exchange 

represents it has the necessary systems 

capacity to support new options series 

that will result from the introduction of 

Monthly Options Series. 

The Exchange also proposes to amend 

Rules 8.30 through 8.34 to provide that 

positions in Monthly Options Series 

will be aggregated with positions in 

options contracts on the same 

underlying security or index.14 This is 

consistent with how position (and 

exercise) limits are currently imposed 

on series with other expirations (Short 

Term Options Series, Quarterly Options 

Series, and Delayed Start Options 

Series). Therefore, positions in options 

within class of index or ETF options, 

regardless of their expirations, would 

continue to be subject to existing 

position (and exercise) limits. The 

Exchange believes this will address 

potential manipulative schemes and 

adverse market impacts surrounding the 

use of options. 

The Exchange also represents its 

current surveillance programs will 

apply to Monthly Options Series and 

will properly monitor trading in the 

proposed Monthly Options Series. The 

Exchange currently lists Quarterly 

Options Series in certain index 15 and 

ETF classes, which expire at the close 

of business at the end of four calendar 

months (i.e., the end of each calendar 

quarter), and has not experienced any 

market disruptions nor issues with 

capacity. The Exchange’s surveillance 

programs currently in place to support 

and properly monitor trading in these 

Quarterly Options Series, as well as 

Short Term Option Series and standard 

expiration series, will apply to the 

proposed Monthly Options Series. The 

Exchange believes its surveillances 

continue to be designed to deter and 

detect violations of its Rules, including 

position and exercise limits and 

possible manipulative behavior, and 

these surveillances will apply to 

Monthly Options Series that the 

Exchange determines to list for trading. 

Ultimately, the Exchange does not 

believe the proposed rule change raises 

any unique regulatory concerns because 

existing safeguards—such as position 

and exercise limits (and the aggregation 

of options overlying the same index or 

ETF) and reporting requirements— 

would continue to apply. 

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.16 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 17 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) 18 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 introduction of Monthly Options 

Series will remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system by expanding hedging tools 

available to market participants. The 

Exchange believes the proposed 

monthly expirations will allow market 

participants to transact in the index and 

ETF options listed pursuant to the 

proposed rule change based on their 

timing as needed and allow them to 

tailor their investment and hedging 

needs more effectively. Further, the 

Exchange believes the availability of 

Monthly Options Series would protect 

investors and the public interest by 

providing investors with more 

flexibility to closely tailor their 

investment and hedging decisions in 

these options, thus allowing them to 

better manage their risk exposure. 

The Exchange believes the Quarterly 

Options Series Program has been 

successful to date and the proposed 

Monthly Options Series program simply 

expands the ability of investors to hedge 

risk against market movements 

stemming from economic releases or 

market events that occur at months’ 

ends in the same way the Quarterly 

Options Series Program has expanded 

the landscape of hedging for quarter-end 

news. Monthly Options Series will also 

complement Short Term Options Series, 

which allow investors to hedge risk 

against events that occur throughout a 

month. The Exchange believes the 

availability of additional expirations 

should create greater trading and 

hedging opportunities for investors, as 

well as provide investors with eh ability 

to tailor their investment objectives 

more effectively. 

The Exchange notes the proposed 

terms of Monthly Options Series, 

including the limitation to five index 

and ETF option classes, are 

substantively the same as the current 

terms of Quarterly Options Series.19

Quarterly Options Series expire on the 

last business day of a calendar quarter, 

which is the last business day of every 

third month. The proposed Monthly 

Options Series would fill the gaps 

between Quarterly Options Series 

expirations by permitting series to 

expire on the last business day of every 

month, rather than every third month. 

The proposed Monthly Options Series 

may be listed in accordance with the 

same terms as Quarterly Options Series, 

including permissible strikes.20 As is 


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to 12 standard monthly expirations on the majority 

of index options currently listed on the Exchange). 

21See Rules 4.5(e) and 4.13(a)(2)(B). 

22The Exchange notes the proposed maximum 

number of expirations is consistent with the 

maximum number of expirations permitted for endof-month series in index classes. See Rule 4.13(e)(2) 

(which references Rule 4.13(a)(2), which permits up 

to 12 standard monthly expirations on the majority 

of index options currently listed on the Exchange). 

the case with Quarterly Options Series, 

no Short Term Options Series may 

expire on the same day as a Monthly 

Options Series. Similarly, as proposed, 

no Monthly Options Series may expire 

on the same day as a Quarterly Options 

Series. The Exchange believes 

preventing listing series with concurrent 

expirations in a class will eliminate 

potential investors confusion and thus 

protect investors and the public interest. 

Given that Quarterly Options Series the 

Exchange currently lists are essentially 

Monthly Options Series that can expire 

at the end of only certain calendar 

months, the Exchange believes it is 

reasonable to list Monthly Options 

Series in accordance with the same 

terms, as it will promote just and 

equitable principles of trade. The 

Exchange believes limiting Monthly 

Options Series to five classes will 

ensure the addition of these new series 

will have a negligible impact on the 

Exchange’s and OPRA’s quoting 

capacity. The Exchange represents it has 

the necessary systems capacity to 

support new options series that will 

result from the introduction of Monthly 

Options Series. 

The Exchange further believes the 

proposed rule change regarding the 

treatment of Monthly Options Series 

with respect to determining compliance 

with position and exercise limits is 

designed to prevent fraudulent and 

manipulative acts and practices and 

promote just and equitable principles of 

trade. Monthly Options Series will be 

aggregated with options overlying the 

same ETF or index for purposes of 

compliance with position (and exercise) 

limits, which is consistent with how 

position (and exercise) limits are 

currently imposed on series with other 

expirations (Short Term Options Series, 

Quarterly Options Series, and Delayed 

Start Options Series). Therefore, options 

positions within ETF or index option 

classes for which Monthly Options 

Series are listed, regardless of their 

expirations, would continue to be 

subject to existing position (and 

exercise) limits. The Exchange believes 

this will address potential manipulative 

schemes and adverse market impacts 

surrounding the use of options. The 

Exchange also represents its current 

surveillance programs will apply to 

Monthly Options Series and will 

properly monitor trading in the 

proposed Monthly Options Series. The 

Exchange currently trades Quarterly 

Options Series in certain index and ETF 

classes, which expire at the close of 

business at the end of four calendar 

months (i.e., the end of each calendar 

quarter), and has not experienced any 

market disruptions nor issues with 

capacity. The Exchange’s surveillance 

programs currently in place to support 

and properly monitor trading in these 

Quarterly Options Series, as well as 

Short Term Option Series and standard 

expiration series, will apply to the 

proposed Monthly Options Series. The 

Exchange believes its surveillances 

continue to be designed to deter and 

detect violations of its Rules, including 

position and exercise limits and 

possible manipulative behavior, and 

these surveillances will apply to 

Monthly Options Series that the 

Exchange determines to list for trading. 

Ultimately, the Exchange does not 

believe the proposed rule change raises 

any unique regulatory concerns because 

existing safeguards—such as position 

and exercise limits (and the aggregation 

of options overlying the same ETF or 

index) and reporting requirements— 

would continue to apply. 

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 does not believe the proposed 

rule change to list Monthly Option 

Series will impose any burden on 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as any 

Monthly Options Series the Exchange 

lists for trading will be available in the 

same manner for all market participants 

who wish to trade such options. The 

Exchange notes the proposed terms of 

Monthly Options Series, including the 

limitation to five index and ETF option 

classes, are substantively the same as 

the current terms of Quarterly Options 

Series.21 Quarterly Options Series 

expire on the last business day of a 

calendar quarter, which is the last 

business day of every third month, 

making the concept of Monthly Options 

Series in a limited number of index and 

ETF options not novel. The proposed 

Monthly Options Series will fill the 

gaps between Quarterly Options Series 

expirations by permitting series to 

expire on the last business day of every 

month, rather than every third month. 

The proposed Monthly Options Series 

may be listed in accordance with the 

same terms as Quarterly Options Series, 

including permissible strikes.22

Monthly Options Series will trade on 

the Exchange in the same manner as 

other options in the same class. 

The Exchange does not believe the 

proposed rule change to list Monthly 

Option Series will impose any burden 

on intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as nothing 

prevents other options exchanges from 

proposing similar rules. As discussed 

above, the proposed rule change would 

permit listing of Monthly Options Series 

in five index or ETF options, as well as 

any other classes that other exchanges 

may list under similar programs. To the 

extent that the availability of Monthly 

Options Series makes the Exchange a 

more attractive marketplace to market 

participants at other exchanges, market 

participants are free to elect to become 

market participants on the Exchange. 

The Exchange believes that the 

proposed rule change may relieve any 

burden on, or otherwise promote, 

competition. Similar to Short Term 

Options Series and Quarterly Options 

Series, the Exchange believes the 

introduction of Monthly Options Series 

will not impose an undue burden on 

competition. The Exchange believes that 

it will, among other things, expand 

hedging tools available to market 

participants. The Exchange believes 

Monthly Options Series will allow 

market participants to purchase 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 

proposed rule change to provide that 

positions in Monthly Options Series 

will be aggregated with positions in 

options contracts on the same 

underlying index or security for 

purposes of determining compliance 

with position (and exercise) limits will 

impose any burden on intramarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act, as it will apply in 

the same manner to all market 

participants. The Exchange proposes to 

apply position (and exercise) limits to 

Monthly Options Series in the same 

manner it applies position limits to 

series with other expirations (Short 

Term Options Series, Quarterly Options 

Series, and Delayed Start Options 

Series). Therefore, positions in options 

in a class of ETF or index options, 

regardless of their expirations, would 

continue to be subject to existing 

position (and exercise) limits. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 68837 

23 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4For purposes of this filing, Nasdaq and Nasdaq 

BX are referred to collectively as the ‘‘Nasdaq 

Exchanges.’’ Nasdaq General 2, Section 6(a) and 

Nasdaq BX General 2, Section 6(a) are referred to 

collectively as the ‘‘Nasdaq Exchanges’ Rules.’’ 

Additionally, the Exchange does not 

believe this proposed rule change will 

impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act, because it will 

address potential manipulative schemes 

and adverse market impacts 

surrounding the use of options. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the Exchange consents, the Commission 

will: 

A. by order approve or disapprove 

such proposed rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CBOE–2023–049 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–CBOE–2023–049. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

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

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

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

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–CBOE–2023–049 and should be 

submitted on or before October 25, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21939 Filed 10–3–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98620; File No. SR– 

NYSEARCA–2023–66] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 0 

September 28, 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 

September 27, 2023, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ 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 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 amend 

Rule 0 (Regulation of the Exchange, OTP 

Holders, OTP Firms and ETP Holders) 

to adopt new rule text based on based 

on [sic] Rule 0 (Regulation of the 

Exchange and its Member 

Organizations) of its affiliate New York 

Stock Exchange LLC. 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 Exchange proposes to amend 

Rule 0 (Rule 0 [sic] (Regulation of the 

Exchange, OTP Holders, OTP Firms and 

ETP Holders) to adopt new rule text 

based on Rule 0 (Regulation of the 

Exchange and its Member 

Organizations) of its affiliate New York 

Stock Exchange LLC (‘‘NYSE’’). 

Specifically, the Exchange proposes a 

new subsection (b) in conformity with 

NYSE Rule 0(b). NYSE Rule 0(b) is in 

turn based on FINRA Rule 0140(a) 

(Applicability), Nasdaq Stock Market 

LLC (‘‘Nasdaq’’) General 2 (Organization 

and Administration), Section 6(a), and 

Nasdaq BX, Inc. (‘‘Nasdaq BX’’) General 

2 (Organization and Administration), 

Section 6(a).4

NYSE Rule 0(b) provides that the 

NYSE’s rules apply to all member 

organizations and persons associated 


lotter on DSK11XQN23PROD with NOTICES1