80356 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 

16See supra note 7. 

17See supra note 8. 

18 15 U.S.C. 78s(b)(3)(A)(ii). 

19 17 CFR 240.19b–4(f)(2). 

20 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. 98593 

(September 28, 2023), 88 FR 68833 (‘‘Notice’’). 

4The 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 

exchanges and to attract order flow. The 

Exchange believes the electronic NonAuction Transactions fee structure, 

including the proposed change, will 

remain competitive with other options 

exchanges and will continue to assess 

lower Public Customer taker fees than 

several other exchanges.16

The Exchange believes the proposed 

changes to Tier 4 and the addition of 

Tier 5 in Section IV.A.1 will not impose 

a burden on competition among various 

BOX Participants. The Exchange 

believes that the proposed changes will 

result in Public Customers being rebated 

appropriately for their transactions. The 

Exchange believes further that the 

proposed rebates will continue to attract 

Public Customer order flow to the BOX, 

which will ultimately benefit all 

Participants trading on BOX. 

Finally, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues. In such 

an environment, the Exchange must 

continually review, and consider 

adjusting, its fees and rebates to remain 

competitive with other exchanges. 

Because competitors are free to modify 

their own fees and rebates in response, 

and because market participants may 

readily adjust their order routing 

practices, the Exchange believes that the 

degree to which fee or rebate changes in 

this market may impose any burden on 

competition is extremely limited. The 

Exchange notes that other exchanges 

provide programs to incentivize 

customer order flow and that the 

proposed changes to the volume 

thresholds remain competitive when 

compared to incentive structures at 

other exchanges.17 For the reasons 

described above, the Exchange believes 

that the proposed rule change will 

encourage intermarket competition. 

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 Exchange Act 18

and Rule 19b–4(f)(2) thereunder,19

because it establishes or changes a due, 

or fee. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend the rule change if 

it appears to the Commission that the 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or would otherwise further 

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– 

BOX–2023–25 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–BOX–2023–25. 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–BOX–2023–25 and should be 

submitted on or before December 8, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25379 Filed 11–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98915; File No. SR–CBOE– 

2023–049] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Order Approving a 

Proposed Rule Change To Adopt 

Monthly Options Series 

November 13, 2023. 

I. Introduction 

On September 27, 2023, Cboe 

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

Options’’) 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 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’’). The proposed rule change was 

published for comment in the Federal 

Register on October 4, 2023.3 The 

Commission did not receive any 

comment letters and is approving the 

proposed rule change. 

II. Description of the Proposal 

Cboe Options proposes to amend its 

rules to adopt the listing and trading of 

Monthly Options Series. The proposed 

rule change will allow Cboe Options to 

open for trading Monthly Option Series 

that would expire at the close of 

business on the last business day of a 

calendar month.4 The Exchange may list 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 80357 

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’’ in those rules 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. 5The 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. 

6The Exchange notes this provision considers 

consecutive monthly listings. 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. See Notice, supra note 3 at 

68834. 

7See proposed Rules 4.5(g)(2) and 

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

8See proposed Rule 4.5(g)(3) and 

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

9See proposed Rules 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. See 

Notice, supra note 3 at 68834. For consistency, the 

Exchange also proposes to amend Rule 4.5(e)(4) to 

incorporate the same provision for initial series. 

10The 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. See proposed Rules 4.5(g)(4) 

and 4.13(a)(2)(C)(iv). 

11The 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 p.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. This 

could not occur with respect to ETFs, as all Short 

Term Options Series on ETFs are p.m.-settled. See 

Notice, supra note 3 at 68834. 

12Notwithstanding this delisting policy, customer 

requests to add strikes and/or maintain strikes in 

Monthly Options Series in series eligible for 

delisting will be granted. See Notice, supra note 3 

at 68834. 

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. See Notice, 

supra note 3 at 68835. 

15 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). 

16 15 U.S.C. 78f(b)(5). 

Monthly Option Series for up to five 

currently listed option classes that are 

either index options or options on 

exchange-traded funds (‘‘ETFs’’).5 In 

addition, the Exchange may also list 

Monthly Option Series on any options 

classes that are selected by other 

securities exchanges that employ a 

similar program under their respective 

rules. 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.6

Other expirations in the same class are 

not counted as part of the maximum 

numbers of Monthly Option Series 

expirations for a class.7 Monthly 

Options Series will be p.m.-settled.8

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.9 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.10

Monthly Option Series cannot 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. In order to account for this, the 

Exchange proposes to amend Rules 

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

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. 

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.11

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.12 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 

series to be delisted, so as to ensure 

uniform series delisting of multiply 

listed Monthly Options Series.13 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

III. Discussion and Commission 

Findings 

After careful review, 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.15 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,16 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. 

In support of its proposal, the 

Exchange states the proposed monthly 

expirations will allow market 


khammond on DSKJM1Z7X2PROD with NOTICES
80358 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 

17See Notice, supra note 3 at 68835. 

18Compare proposed Rules 4.5(g) and 

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

respectively. See Notice, supra note 3 at 68835. 

19The Exchange notes it currently lists quarterly 

expirations on index options pursuant to Rule 

4.13(c) (regarding quarterly index expirations). 

20See Notice, supra note 3 at 68835. 

21See id. 

22See id. 

23See id. 

24See id. 

25See id. 

26See id. 

27See Securities Exchange Act Release No. 98456 

(September 20, 2023), 88 FR 66091 at 66092 

(September 26, 2023) (SR–CBOE–2023–020). 

28See supra notes 23–25 and accompanying text. 

29 15 U.S.C. 78f(b)(5). 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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.17 Further, 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.18 The Exchange states that it 

currently lists Quarterly Options Series 

in certain index 19 and ETF classes, 

which expire at the close of business at 

the end of each calendar quarter, and 

has not experienced any market 

disruptions nor issues with capacity.20

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 Options Price Reporting 

Authority’s quoting capacity.21 The 

Exchange represents it has the necessary 

systems capacity to support new options 

series that will result from the 

introduction of Monthly Options 

Series.22

The Exchange represents its current 

surveillance programs will apply to 

Monthly Options Series and will 

properly monitor trading in the 

proposed Monthly Options Series.23

The Exchange’s surveillance programs 

currently in place to support and 

properly monitor trading in Quarterly 

Options Series, as well as Short Term 

Option Series and standard expiration 

series, will apply to the proposed 

Monthly Options Series.24 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.25 Further, 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.26

As noted above, the Exchange 

currently has Quarterly Options Series 

for up to five ETF or index classes. In 

addition, the Commission recently 

approved a proposal by the Exchange to 

permanently establish a Nonstandard 

Expiration Program, which permits, 

among other things, the listing and 

trading of broad-based index options 

with end of month expirations.27 The 

Commission believes that the proposed 

Monthly Options Series, which the 

Exchange proposes to limit to a total of 

five ETF or index classes, strikes a 

reasonable balance between the 

Exchange’s desire to offer a wider array 

of investment opportunities and the 

need to avoid unnecessary proliferation 

of options series and the corresponding 

increase in quotes. Further, the 

Exchange has represented that it has an 

adequate surveillance program in place 

to detect manipulative trading in the 

Monthly Options Series and has the 

necessary systems capacity to support 

the new options series.28 The 

Commission expects the Exchange, 

consistent with its Monthly Options 

Series delisting policy, to continue to 

monitor for option series with little or 

no open interest and trading activity 

and to act promptly to delist such 

options in order to mitigate the number 

of options series with no open interest. 

Accordingly, the Commission finds 

that the proposed rule change is 

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

Act 29 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,30 that the 

proposed rule change (SR–CBOE–2023– 

049) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25384 Filed 11–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98912; File No. SR– 

NASDAQ–2023–043] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Equity 7, Section 118 

November 13, 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 November 

1, 2023, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ 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 amend the 

Exchange’s schedule of credits and fees 

at Equity 7, Section 118(a) as described 

further below. The text of the proposed 

rule change is available on the 

Exchange’s website at https://listing

center.nasdaq.com/rulebook/nasdaq/ 

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 purpose of the proposed rule 

change is to (i) eliminate a credit to 

members for displayed quotes/orders 


khammond on DSKJM1Z7X2PROD with NOTICES