Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 80361 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98534 

(September 26, 2023), 88 FR 67830 (‘‘Notice’’). The 

Commission received no comment letters on the 

proposed rule change. 

4See Interpretations and Policies .04 of Exchange 

Rule 404. Exchange Rule 404 includes several 

different strike interval programs, including the 

$0.50 Strike Program, the $1 Strike Price Interval 

Program, and the $2.50 Strike Price Program. See 

Interpretations and Policies .04 of Exchange Rule 

404, Interpretations and Policies .01 of Exchange 

Rule 404, and Exchange Rule 404(f). 

5See Interpretations and Policies .02 of Exchange 

Rule 404. 

6The Exchange notes this is the same 

methodology used in the $1 Strike Price Interval 

Program. See Interpretations and Policies .01(c)(3) 

of Exchange Rule 404. For the purpose of adding 

strikes under the Low Priced Stock Strike Price 

Interval Program, the ‘‘price of the underlying 

stock’’ shall be measured in the same way as ‘‘the 

price of the underlying security’’ as set forth in 

Exchange Rule 404A(b)(1). 

7See Notice, supra note 3, at 67831. 

8While the Exchange may list new strikes on 

underlying stocks that meet the eligibility 

requirements of the new program, the Exchange 

states that it will exercise its discretion and will not 

list strikes on underlying stocks the Exchange 

believes are subject to imminent delisting from their 

primary exchange. See Notice, supra note 3, at 

67831 n.12. 

9See Notice, supra note 3, at 67831. 

the Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.) (‘‘Exchange Act’’); or 

(2) filed a registration statement 

pursuant to Section 12 of the Exchange 

Act for a class of its equity securities. 

The Commission adopted Form N–54A 

(17 CFR 274.53) as the form for 

notification of election to be regulated 

as a business development company. 

The purpose of Form N–54A is to 

notify the Commission that the 

investment company making the 

notification elects to be subject to 

Sections 55 through 65 of the 

Investment Company Act, enabling the 

Commission to administer those 

provisions of the Investment Company 

Act to such companies. 

The Commission estimates that on 

average approximately 21 business 

development companies file these 

notifications each year. Each of those 

business development companies need 

only make a single filing of Form N– 

54A. The Commission further estimates 

that this information collection imposes 

a burden of 0.5 hours, resulting in a 

total annual PRA burden of 10.5 hours. 

Based on the estimated wage rate, the 

total cost to the business development 

company industry of the hour burden 

for complying with Form N–54A would 

be approximately $4,462.50. 

The collection of information under 

Form N–54A is mandatory. The 

information provided by the form is not 

kept confidential. An agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a 

currently valid control number. 

Written comments are invited on: (a) 

whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden of the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

by January 16, 2024. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: David Bottom, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: November 14, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25476 Filed 11–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98917; File No. SR–MIAX– 

2023–36] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Order Approving a Proposed Rule 

Change To Amend Exchange Rule 404, 

Series of Option Contracts Open for 

Trading 

November 13, 2023. 

I. Introduction 

On September 14, 2023, Miami 

International Securities Exchange LLC 

(‘‘MIAX’’ 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 

amend Exchange Rule 404, Series of 

Option Contracts Open for Trading. The 

proposed rule change was published for 

comment in the Federal Register on 

October 2, 2023.3 This order approves 

the proposed rule change. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to amend 

Exchange Rule 404, Series of Option 

Contracts Open for Trading, to adopt 

Interpretations and Policies .12 to 

Exchange Rule 404 to implement a 

strike interval program for stocks that 

are priced less than $2.50 and have an 

average daily trading volume of at least 

1,000,000 shares per day for the three 

preceding calendar months (the ‘‘Low 

Priced Stock Strike Price Interval 

Program’’). The Exchange also proposes 

to amend the table in Exchange Rule 

404, Interpretations and Policies .11 to 

harmonize that table to the proposed 

rule change. 

The Exchange proposes to adopt the 

Low Priced Stock Strike Price Interval 

Program for underlying stocks that are 

not in the $0.50 Strike Program 4 (or the 

Short Term Option Series Program) 5

and that close below $2.50 and have an 

average daily trading volume of at least 

1,000,000 shares per day for the three 

preceding calendar months. To be 

eligible for the inclusion in the 

proposed Low Priced Stock Strike Price 

Interval Program, an underlying stock 

must (i) close below $2.50 in its primary 

market on the previous trading day and 

(ii) have an average daily trading 

volume of at least 1,000,000 shares per 

day for the three (3) preceding calendar 

months.6 For stocks added to the Low 

Priced Stock Strike Price Interval 

Program, if the underlying stock closes 

at or above $2.50 in its primary market 

no additional series in $0.50 intervals 

may be listed, and additional series in 

$0.50 intervals may not be added until 

the underlying stock again closes below 

$2.50.7

After a stock is added to the Low 

Priced Stock Strike Price Interval 

Program, the Exchange proposes that it 

may list $0.50 strike price intervals from 

$0.50 up to $2.00.8 The Exchange 

represents that there will be no limit to 

the number of classes eligible for 

inclusion in the proposed program, so 

long as the underlying stock satisfies 

both the price and average daily trading 

volume requirements.9

Additionally, the Exchange proposes 

to amend the table in Exchange Rule 

404, Interpretations and Policies .11 to 

insert a column to harmonize the 

Exchange’s proposal to the strike 

intervals for Short Term Options Series 

as described in Interpretations and 

Policies .02 of Exchange Rule 404. The 

table in Interpretations and Policies .11 

is intended to limit the intervals 

between strikes for multiply listed 

equity options within the Short Term 


khammond on DSKJM1Z7X2PROD with NOTICES
80362 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 

10See Securities Exchange Release Act No. 91125 

(February 21, 2021), 86 FR 10375 (February 19, 

2021) (SR–BX–2020–032) (Order Granting 

Accelerated Approval of a Proposed Rule Change, 

as Modified by Amendment No. 1, To Amend 

Options 4, Section 5, To Limit Short Term Options 

Series Intervals Between Strikes That Are Available 

for Quoting and Trading on BX). 

11See Notice, supra note 3, at 67831. 

12 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

13 15 U.S.C. 78f(b)(5). 

14See Notice, supra note 3, at 67831–32. 

15See Notice, supra note 3, at 67832. 

16See id. 

17See id. 

18See id. 

19See id. 

20See id. 

21See Notice, supra note 3, at 67833. 

22 15 U.S.C. 78f(b)(5). 23 15 U.S.C. 78f(b)(2). 24 17 CFR 200.30–3(a)(12). 

Options Series program that have an 

expiration date more than twenty-one 

days from the listing date. Specifically, 

the table defines the applicable strike 

intervals for options on underlying 

stocks given the closing price on the 

primary market on the last day of the 

calendar quarter, and a corresponding 

average daily volume of the total 

number of options contracts traded in a 

given security for the applicable 

calendar quarter divided by the number 

of trading days in the applicable 

calendar quarter.10 However, the lowest 

share price column is titled ‘‘Less than 

$25.’’ The Exchange proposes to insert 

a column entitled ‘‘Less than $2.50’’ and 

to set the strike interval at $0.50 for each 

average daily volume tier represented in 

the table. Also, the Exchange proposes 

to amend the heading of the column 

currently titled ‘‘Less than $25’’ to 

‘‘$2.50 to less than $25’’ as a result of 

the new column entitled, ‘‘Less than 

$2.50.’’ 11

III. Discussion and Commission 

Findings 

The Commission finds that the 

proposed rule change is consistent with 

the Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.12 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,13 which requires, 

among other things, that the Exchange’s 

rules be designed to prevent fraudulent 

and manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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. 

The Exchange recognizes that its 

proposal will increase the total number 

of option series available on the 

Exchange; however, it believes this is 

appropriate to address a gap in strike 

coverage for low priced stocks, and the 

Exchange represents that it will only 

add strikes where there is investor 

demand and adequate liquidity.14 The 

Exchange represents that as of August 9, 

2023, 106 symbols met the criteria for 

inclusion in the proposed program.15 Of 

those symbols, 36 are currently in the $1 

Strike Price Interval Program with $1.00 

and $2.00 strikes listed.16 If MIAX adds 

$0.50 and $1.50 strikes for these 

symbols for the current expiration 

terms, and $0.50, $1.00, $1.50 and $2.00 

strikes to current expiration terms for 

the remaining 70 symbols eligible under 

the proposal, a total of approximately 

3,250 options would be added, which 

represents an increase of only 0.294% in 

the number of options listed on the 

Exchange.17

In support of its proposal, the 

Exchange provided examples of symbols 

that would qualify for the new program 

but are not currently in pre-existing 

strike price interval programs. For 

example, the Exchange states that on 

August 9, 2023, symbol SOND closed at 

$0.50 and had open interest of over 

44,000 contracts and an average daily 

trading volume in the underlying stock 

of over 1,900,000 shares for the three 

preceding calendar months.18 In the 

absence of the Low Priced Stock Strike 

Price Interval Program, the lowest strike 

listed for the symbol is for $2.50, 

making the lowest strike 400% away 

from the closing stock price. Similarly, 

according to the Exchange, symbol 

CTXR, which closed at $0.92 on August 

9, 2023 and had open interest of over 

63,000 contracts and an average daily 

trading volume in the underlying stock 

of over 1,900,000 shares for the three 

preceding calendar months, had a 

lowest strike listed at $2.50 which is 

more than 170% away from the closing 

stock price.19

The Exchange states that for these and 

similar symbols that presently have no 

at-the-money options, as well as no inthe-money calls or out-of-the-money 

puts, the Low Priced Stock Strike Price 

Interval Program will provide for more 

effective and tailored trading and 

hedging opportunities for this subset of 

stocks.20

The Exchange believes that the 

proposed average daily trading volume 

requirement of 1,000,000 shares is a 

reasonable threshold to ensure adequate 

liquidity in eligible underlying stocks.21

The Exchange represents that it has 

the necessary capacity and surveillance 

programs in place to support and 

properly monitor trading in the 

proposed Low Priced Stock Strike Price 

Interval Program; it believes that the 

Options Price Reporting Authority 

(‘‘OPRA’’) has the necessary systems 

capacity to handle any additional 

messaging traffic associated with this 

proposed rule change; and that 

Members will not have capacity issues 

as a result of the proposed rule change. 

Finally, the Exchange believes the 

change proposed to the table in 

Interpretations and Policies .11 to 

Exchange Rule 404 will remove any 

potential conflict between the strike 

intervals under the Short Term Options 

Series Program and those described 

under the proposed Low Priced Stock 

Strike Price Interval Program. The 

Commission believes that this change 

would add clarity to the Exchange 

rulebook and help avoid investor 

confusion. 

The Commission believes that the 

proposal to add the Low Priced Stock 

Strike Price Interval Program to 

Exchange Rule 404, and the 

corresponding changes to the table in 

Exchange Rule 404, Interpretations and 

Policies .11, strikes a reasonable balance 

between the Exchange’s desire to offer a 

wider array of products with the need 

to avoid unnecessary proliferation of 

options series and the corresponding 

increase in quotes. The proposal adds a 

limited range of more granular strike 

intervals where they are more relevant 

and likely more in demand from 

customers, but only for those lower 

priced underlying stocks where there is 

adequate liquidity. In addition, the 

Commission believes that the proposed 

rule change is reasonably designed to 

effectuate the Exchange’s goals of 

increasing liquidity, providing more 

tailored and effective trading and 

hedging opportunities for market 

participants, and improving market 

quality. Accordingly, the Commission 

finds that the proposed rule change is 

consistent with Section 6(b)(5) of the 

Act 22 and the rules and regulations 

thereunder applicable to a national 

securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,23 that the 

proposed rule change (SR–MIAX–2023– 

36), be and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25385 Filed 11–16–23; 8:45 am] 

BILLING CODE 8011–01–P 


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