68186 Federal Register / Vol. 88, No. 190 / Tuesday, October 3, 2023 / Notices 

76 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Lead Market Maker’’ applies to 

transactions for the account of a Lead Market Maker 

(as defined in Options 2, Section 12(a)). A Lead 

Market Maker is an Exchange member who is 

registered as an options Lead Market Maker 

pursuant to Options 2, Section 12(a). An options 

Lead Market Maker includes a Remote Lead Market 

Maker which is defined as an options Lead Market 

Maker in one or more classes that does not have a 

physical presence on an Exchange floor and is 

approved by the Exchange pursuant to Options 2, 

Section 11. 

4The term ‘‘Market Maker’’ is defined in Options 

1, Section 1(b)(28) as a member of the Exchange 

who is registered as an options Market Maker 

pursuant to Options 2, Section 12(a). A Market 

Maker includes SQTs and RSQTs as well as Floor 

Market Makers. 

5The term ‘‘Directed Market Maker’’ means a 

Market Maker that receives a Directed Order in 

accordance with Options 2, Section 10. 

6The term ‘‘Directed Order’’ means any order to 

buy or sell which has been directed to a particular 

Lead Market Maker, RSQT, or SQT by an Order 

Flow Provider, as defined in Options 2, Section 10. 

To qualify as a Directed Order, an order must be 

delivered to the Exchange via the System. 

7Options 7, Section 5 sets forth pricing for index 

and singly listed options (includes options 

overlying FX Options, equities, ETFs, ETNs, and 

indexes not listed on another exchange). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4) and (5). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.76

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21783 Filed 10–2–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98561; File No. SR–Phlx– 

2023–44] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Pricing 

Schedule at Options 7, Section 4 

Regarding Marketing Fees 

September 27, 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 13, 2023, Nasdaq PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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 

The Exchange proposes to a proposal 

to amend its Pricing Schedule at 

Options 7, Section 4. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, 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 

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 the 

Exchange’s Pricing Schedule at Options 

7, Section 4 to specify the application of 

its marketing fees. Today, the Exchange 

delineates pricing for multiply-listed 

options in Options 7, Section 4, 

including marketing fees (‘‘Marketing 

Fees’’). The Marketing Fees for 

multiply-listed options are assessed on 

Lead Market Makers,3 Market Makers,4

and Directed Market Makers 5 for trades 

resulting from either Directed or nonDirected Customer Orders 6 that are 

delivered electronically and executed 

on the Exchange, with certain specified 

exceptions, including the exclusion of 

transactions in broad-based index 

options symbols listed in Options 7, 

Section 5.A. 

The Exchange now proposes to amend 

the rule to specify that no Marketing 

Fees will be assessed on transactions in 

options symbols subject to Options 7, 

Section 5 pricing 7 to make clear that the 

exclusion also applies to all singly listed 

options subject to pricing in Options 7, 

Section 5.C and Options 7, Section 5.D 

(in addition to broad-based index 

options symbols in Options 7, Section 

5.A, as currently specified). The 

Exchange notes that this is not a change 

to current practice; rather, the proposed 

changes are intended to memorialize 

how the Exchange currently assesses 

Marketing Fees. Today, the Exchange 

already indicates in the header of 

Options 7, Section 4 that the pricing set 

forth in Section 4 (including Marketing 

Fees) applies only to multiply listed 

options excluding SPY and the broadbased index options in Options 7, 

Section 5.A. Section 4 specifically 

excludes the broad-based index options 

in Options 7, Section 5.A because some 

of the symbols (like NDX) are multiply 

listed. Furthermore, Options 7, Section 

5 specifically indicates that the pricing 

set forth in this Section 5 applies to 

index options and singly listed options. 

By implication, options that are singly 

listed on Phlx, and that are subject to 

Options 7, Section 5.C and Section 5.D 

pricing are excluded from Options 7, 

Section 4 pricing like the Marketing 

Fees. However, the Exchange believes 

that further clarity will be helpful by 

explicitly stating this exclusion in the 

Marketing Fees portion of Section 4 to 

avoid potential confusion by market 

participants and investors. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,9 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange believes that the 

proposed changes in Options 7, Section 

4 to specify that no Marketing Fees will 

be assessed on transactions in options 

symbols subject to Options 7, Section 5 

pricing are reasonable because the 

changes will make clear that the 

exclusion also applies to all singly listed 

options subject to pricing in Options 7, 

Section 5.C and Options 7, Section 5.D 

(in addition to broad-based index 

options symbols in Options 7, Section 

5.A, as currently specified). As 

discussed above, the proposed changes 

will not amend current practice; rather, 

the proposed changes are intended to 

memorialize how the Exchange 

currently assesses Marketing Fees. 

While the Exchange already indicates 

which sections of its Pricing Schedule 

apply to which options in the manner 

discussed above, the Exchange believes 

that further clarity will be helpful by 

explicitly stating in the Marketing Fees 

pricing program itself that all symbols 

subject to Options 7, Section 5 pricing 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 190 / Tuesday, October 3, 2023 / Notices 68187 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98467 

(Sept. 21, 2023), 88 FR 66515. 

will be excluded from the Marketing 

Fees in order to avoid potential 

confusion by market participants and 

investors. The Exchange also believes 

that it is reasonable to exclude singly 

listed options in Options 7, Section 5 

from the Marketing Fees because the 

purpose of this program is to generate 

more Customer order flow to the 

Exchange. Because singly listed options 

are exclusively listed products on Phlx, 

the Exchange does not believe that 

applying Marketing Fees is necessary for 

these products. 

Lastly, the Exchange believes that its 

proposal to memorialize that all options 

symbols subject to Options 7, Section 5 

pricing are excluded from the Marketing 

Fees program set forth in Options 7, 

Section 4 is equitable and not unfairly 

discriminatory because the program will 

uniformly exclude all market 

participant orders in these symbols. As 

noted above, the Exchange’s proposal 

does not alter its existing Marketing 

Fees program, but instead memorializes 

current practice. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that its 

proposal would impose an undue 

burden on intra-market competition. 

The proposed changes will memorialize 

current practice that no Marketing Fees 

will be assessed on transactions in 

options symbols subject to Options 7, 

Section 5 pricing, which will continue 

to apply uniformly to all market 

participant orders in such symbols. 

In terms of inter-market competition, 

the Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges. Because competitors are free 

to modify their own fees in response, 

and because market participants may 

readily adjust their order routing 

practices, the Exchange believes that the 

degree to which fee changes in this 

market may impose any burden on 

competition is extremely limited. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.10

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: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

Phlx–2023–44 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–Phlx–2023–44. 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–Phlx–2023–44 and should be 

submitted on or before October 24, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21786 Filed 10–2–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98565; File No. SRCboeBZX–2023–070] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To List and Trade Shares 

of the ARK 21Shares Ethereum ETF 

Under BZX Rule 14.11(e)(4), 

Commodity-Based Trust Shares 

September 27, 2023. 

On September 6, 2023, Cboe BZX 

Exchange, Inc. (‘‘BZX’’ 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 of the 

ARK 21Shares Ethereum ETF under 

BZX Rule 14.11(e)(4), Commodity-Based 

Trust Shares. The proposed rule change 

was published for comment in the 

Federal Register on September 27, 

2023.3 The Commission has received no 

comments on the proposal. 


ddrumheller on DSK120RN23PROD with NOTICES1