68894 Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Exchange has 

satisfied this requirement. 22 Id. 23 17 CFR 240.19b–4(f)(6)(iii). 

24For 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). 

25 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 97922 

(July 17, 2023), 88 FR 47214 (‘‘Notice’’). Comments 

on the proposed rule change are available at: 

https://www.sec.gov/comments/sr-nasdaq-2023- 

019/srnasdaq2023019.htm. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 98262, 

88 FR 61658 (Sept. 7, 2023). The Commission 

A proposed rule change filed under 

Rule 19b–4(f)(6) 22 normally does not 

become operative prior to 30 days after 

the date of the filing. However, Rule 

19b–4(f)(6)(iii) 23 permits the 

Commission to designate a shorter time 

if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange states that waiver 

of the 30-day operative delay will allow 

the Exchange to include the proposed 

functionality when it re-introduces the 

stock-tied functionality on the 

Exchange. As discussed above, the 

proposed functionality will allow 

auction responses, unrelated Limit 

Complex Orders on the Complex Order 

Book, and Improvement Orders that 

include a short sale order to participate 

in the Complex Facilitation Mechanism, 

Complex SOM, and Complex PIM 

auctions, as applicable. Although the 

potential execution price of the auction 

response or Limit Complex Order will 

vary depending on whether the contra 

order submitted to the auction with the 

agency order also includes a short sale 

order, the Exchange states that the 

alternative would be to exclude 

responses and unrelated Limit Complex 

Orders that include a short sale order 

from the Complex Facilitation 

Mechanism, Complex SOM, and 

Complex PIM auctions altogether. The 

Commission finds that it is consistent 

with the protection of investors and the 

public interest to waive the 30-day 

operative delay. The Commission 

believes that the proposal will benefit 

investors by allowing auction responses, 

Improvement Orders, and unrelated 

Limit Complex Orders that include a 

short sale order to participate in the 

Complex Facilitation Mechanism, 

Complex SOM, and Complex PIM 

auctions, which could increase 

competition in the auctions and 

potentially result in better prices for 

agency orders executed in the auctions. 

In addition, the proposal will make 

clear to market participants that submit 

auction responses that include a short 

sale order, or that enter Limit Complex 

Orders that include a short sale order, 

of the prices that their orders may 

receive when they execute in a Complex 

Facilitation Mechanism, Complex SOM, 

or Complex PIM auction. Therefore, the 

Commission waives the 30-day 

operative delay and designates the 

proposal operative upon filing.24

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– 

MRX–2023–18 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–MRX–2023–18. 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–MRX–2023–18 and should be 

submitted on or before October 25, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21942 Filed 10–3–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98606; File No. SR– 

NASDAQ–2023–019] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Order 

Instituting Proceedings To Determine 

Whether To Approve or Disapprove a 

Proposed Rule Change To List and 

Trade Shares of the Valkyrie Bitcoin 

Fund Under Nasdaq Rule 5711(d), 

Commodity-Based Trust Shares 

September 28, 2023. 

On July 3, 2023, The Nasdaq Stock 

Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares 

(‘‘Shares’’) of the Valkyrie Bitcoin Fund 

(‘‘Trust’’) under Nasdaq Rule 5711(d), 

Commodity-Based Trust Shares. The 

proposed rule change was published for 

comment in the Federal Register on July 

21, 2023.3

On August 31, 2023, pursuant to 

Section 19(b)(2) of the Act,4 the 

Commission designated a longer period 

within which to approve the proposed 

rule change, disapprove the proposed 

rule change, or institute proceedings to 

determine whether to disapprove the 

proposed rule change.5 This order 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 68895 

designated October 19, 2023, as the date by which 

the Commission shall approve or disapprove, or 

institute proceedings to determine whether to 

disapprove, the proposed rule change. 

6 15 U.S.C. 78s(b)(2)(B). 

7See Notice, supra note 3. 

8See id. at 47214. Valkyrie Digital Assets, LLC 

(‘‘Sponsor’’) is the sponsor of the Trust. 

9See id. 

10See id. at 47215. 

11See id. 

12 15 U.S.C. 78s(b)(2)(B). 

13 Id. 

14 15 U.S.C. 78f(b)(5). 

15See Notice, 88 FR at 47222–24. 

16See id. at 47223. 

17See id. at 47223–24. 

18See id. at 47224. 

19See id. at 47223 n.24. 

20See id. 

21See id. at 47224–25. 

22See id. at 47224. 

23See id. The Exchange states that ‘‘[t]his means 

that the Exchange expects to receive market data for 

orders and trades from Coinbase, which it will 

utilize in surveillance of the trading of CommodityBased Trust Shares.’’ Id. 

24See id. 

institutes proceedings under Section 

19(b)(2)(B) of the Act 6 to determine 

whether to approve or disapprove the 

proposed rule change. 

I. Summary of the Proposal 

As described in more detail in the 

Notice,7 the Exchange proposes to list 

and trade the Shares of the Trust under 

Nasdaq Rule 5711(d), which governs the 

listing and trading of Commodity-Based 

Trust Shares on the Exchange. 

The investment objective of the Trust 

is for the Shares to reflect the 

performance of the value of a bitcoin as 

represented by the CME CF Bitcoin 

Reference Rate—New York Variant 

(‘‘Index’’), less the Trust’s liabilities and 

expenses.8 The Trust will only hold 

bitcoin, which will be held by a 

custodian on behalf of the Trust.9 The 

bitcoin held by the Trust will be valued 

based on the price set by the Index and 

the administrator of the Trust will 

calculate the net asset value of the Trust 

once each Exchange trading day.10 The 

Trust will issue and redeem baskets of 

Shares on an ongoing basis only in 

exchange for delivery to the Trust, or 

the distribution by the Trust, of the 

number of whole and fractional bitcoins 

represented by each basket being 

created or redeemed.11

II. Proceedings To Determine Whether 

To Approve or Disapprove SR– 

NASDAQ–2023–019 and Grounds for 

Disapproval Under Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act 12 to determine 

whether the proposed rule change 

should be approved or disapproved. 

Institution of proceedings is appropriate 

at this time in view of the legal and 

policy issues raised by the proposed 

rule change, as discussed below. 

Institution of proceedings does not 

indicate that the Commission has 

reached any conclusions with respect to 

any of the issues involved. Rather, as 

described below, the Commission seeks 

and encourages interested persons to 

provide comments on the proposed rule 

change. 

Pursuant to Section 19(b)(2)(B) of the 

Act,13 the Commission is providing 

notice of the grounds for disapproval 

under consideration. The Commission is 

instituting proceedings to allow for 

additional analysis of the proposed rule 

change’s consistency with Section 

6(b)(5) of the Act, which requires, 

among other things, that the rules of a 

national securities exchange be 

‘‘designed to prevent fraudulent and 

manipulative acts and practices’’ and 

‘‘to protect investors and the public 

interest.’’ 14

The Commission asks that 

commenters address the sufficiency of 

the Exchange’s statements in support of 

the proposal, which are set forth in the 

Notice, in addition to any other 

comments they may wish to submit 

about the proposed rule change. In 

particular, the Commission seeks 

comment on the following questions 

and asks commenters to submit data 

where appropriate to support their 

views: 

1. What are commenters’ views on 

whether the proposed Trust and Shares 

would be susceptible to manipulation? 

What are commenters’ views generally 

on whether the Exchange’s proposal is 

designed to prevent fraudulent and 

manipulative acts and practices? What 

are commenters’ views generally with 

respect to the liquidity and transparency 

of the bitcoin markets and the bitcoin 

markets’ susceptibility to manipulation? 

2. Based on data and analysis 

provided and the academic research 

cited by the Exchange,15 do commenters 

agree with the Exchange that the 

Chicago Mercantile Exchange (‘‘CME’’), 

on which CME bitcoin futures trade, 

represents a regulated market of 

significant size related to spot bitcoin? 16

What are commenters’ views on 

whether there is a reasonable likelihood 

that a person attempting to manipulate 

the Shares would also have to trade on 

the CME to manipulate the Shares? 17 Do 

commenters agree with the Exchange 

that trading in the Shares would not be 

the predominant influence on prices in 

the CME bitcoin futures market? 18

3. The Exchange states that bitcoin is 

resistant to price manipulation and that 

other means to prevent fraudulent and 

manipulative acts and practices ‘‘exist 

to justify dispensing with the requisite 

surveillance sharing agreement’’ with a 

regulated market of significant size 

related to spot bitcoin.19 In support, the 

Exchange states, among other things, 

that the geographically diverse and 

continuous nature of bitcoin trading 

make it difficult and prohibitively costly 

to manipulate the price of bitcoin, and 

that the fragmentation across bitcoin 

platforms, the relatively slow speed of 

transactions, and the capital necessary 

to maintain a significant presence on 

each trading platform make 

manipulation of bitcoin prices through 

continuous trading activity 

challenging.20 The Exchange also states 

that offering only in-kind creations and 

redemptions provides ‘‘unique 

protections against potential attempts to 

manipulate the Shares’’ and that the 

price the Sponsor uses to value the 

Trust’s bitcoin ‘‘is not particularly 

important.’’ 21 Do commenters agree 

with the Exchange’s statements 

regarding the bitcoin market’s resistance 

to price manipulation? 

4. The Exchange also states that it will 

execute a surveillance-sharing 

agreement with Coinbase, Inc. 

(‘‘Coinbase’’) that is intended to 

supplement the Exchange’s market 

surveillance program.22 According to 

the Exchange, the agreement is 

‘‘expected to have the hallmarks of a 

surveillance-sharing agreement between 

two members of the [Intermarket 

Surveillance Group], which would give 

the Exchange supplemental access to 

data regarding spot [b]itcoin trades on 

Coinbase where the Exchange 

determines it is necessary as part of its 

surveillance program for the 

Commodity-Based Trust Shares.’’ 23

Based on the description of the 

surveillance-sharing agreement as 

provided by the Exchange, what are 

commenters’ views of such an 

agreement if finalized and executed? Do 

commenters agree with the Exchange 

that such an agreement with Coinbase 

would be ‘‘helpful in detecting, 

investigating, and deterring fraud and 

manipulation in the Commodity-Based 

Trust Shares’’? 24


lotter on DSK11XQN23PROD with NOTICES1
68896 Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 

25See, e.g. Notice of Filing of Amendment No. 3 

to, and Order Instituting Proceedings to Determine 

Whether to Approve or Disapprove, a Proposed 

Rule Change to List and Trade Shares of the ARK 

21Shares Bitcoin ETF under BZX Rule 14.11(e)(4), 

Commodity-Based Trust Shares, Securities 

Exchange Act Release No. 98112 (Aug. 11, 2023), 

88 FR 55743 (Aug. 16, 2023) (including data from 

sponsor 21Shares US LLC that purports to show 

correlations of returns across the two-year period 

from January 20, 2021, to February 1, 2023, of no 

less than 92% among certain spot bitcoin platforms 

and between the CME bitcoin futures market and 

such spot bitcoin platforms on an hourly basis, and 

no less than 78% on a minutely basis). 

26Section 19(b)(2) of the Act, as amended by the 

Securities Acts Amendments of 1975, Public Law 

94–29 (June 4, 1975), 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 a self-regulatory 

organization. See Securities Acts Amendments of 

1975, Senate Comm. on Banking, Housing & Urban 

Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 

(1975). 27 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

5. Some sponsors of proposed spot 

bitcoin exchange-traded products have 

also provided data regarding the 

correlation between certain bitcoin spot 

markets and the CME bitcoin futures 

market.25 What are commenters’ views 

on the correlation between the bitcoin 

spot market and the CME bitcoin futures 

market? What are commenters’ views on 

the extent to which that correlation 

provides evidence that the CME bitcoin 

futures market is ‘‘significant’’ related to 

spot bitcoin? 

III. Procedure: Request for Written 

Comments 

The Commission requests that 

interested persons provide written 

submissions of their views, data, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

proposal. In particular, the Commission 

invites the written views of interested 

persons concerning whether the 

proposal is consistent with Section 

6(b)(5) or any other provision of the Act, 

and the rules and regulations 

thereunder. 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.26

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposed rule change should be 

approved or disapproved by October 25, 

2023. Any person who wishes to file a 

rebuttal to any other person’s 

submission must file that rebuttal by 

November 8, 2023. 

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–NASDAQ–2023–019 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–NASDAQ–2023–019. 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–NASDAQ–2023–019 and should be 

submitted on or before October 25, 

2023. Rebuttal comments should be 

submitted by November 8, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21946 Filed 10–3–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98621; File No. SR–CBOE– 

2023–054] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of a 

Proposed Rule Change To Amend Rule 

4.13 

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 28, 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 

Rule 4.13. The text of the proposed rule 

change is provided below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe Exchange, Inc. 

* * * * * 

Rule 4.13. Series of Index Options 

* * * * * 

(e) Nonstandard Expirations Program. 

(1) Weekly Expirations. The Exchange may 

open for trading Weekly Expirations on any 

broad-based index eligible for standard 

options trading to expire on any Monday, 

Tuesday, Wednesday, Thursday, or Friday 

(other than the third Friday-of-the-month or 

days that coincide with an EOM expiration). 

[In addition, the Exchange may also open for 

trading Weekly Expirations on S&P 500 Index 

and Mini-S&P 500 Index options to expire on 

any Tuesday or Thursday (other than days 

that coincide with an EOM expiration).] 

Weekly Expirations shall be subject to all 

provisions of this Rule and treated the same 

as options on the same underlying index that 

expire on the third Friday of the expiration 

month; provided, however, that Weekly 

Expirations shall be P.M.-settled and new 

series in Weekly Expirations may be added 

up to and including on the expiration date 

for an expiring Weekly Expiration. 

The maximum number of expirations that 

may be listed for each Weekly Expiration 

(i.e., a Monday expiration, Tuesday 

expiration, Wednesday expiration, Thursday 


lotter on DSK11XQN23PROD with NOTICES1