83180 Federal Register / Vol. 88, No. 227 / Tuesday, November 28, 2023 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98917 

(November 13, 2023) (Order Approving SR–MIAX– 

2023–36). 

4The term ‘‘option contract’’ means a put or a call 

issued, or subject to issuance by the Clearing 

Corporation pursuant to the Rules of the Clearing 

Corporation. See BOX Rule 100(a)(38). 

5The terms ‘‘class of options’’ means all options 

contracts of the same type and style covering the 

same underlying security. See BOX Rule 100(a)(11). 

6See IM–5050–3. 

7The term ‘‘series of options’’ means all options 

contracts of the same class of options having the 

same exercise price and expiration date. See BOX 

Rule 100(a)(63). 

8See IM–5050–2. 

9See IM–5050–5. 

10 Id. 

11See IM–5050–6. 

state the nature of the writer’s interest, 

any facts bearing upon the desirability 

of a hearing on the matter, the reason for 

the request, and the issues contested. 

Persons who wish to be notified of a 

hearing may request notification by 

emailing the Commission’s Secretary. 

ADDRESSES: The Commission: 

Secretarys-Office@sec.gov. Applicants: 

Matthew V. Curtin, Esq., IndexIQ 

Advisors, mcurtin@indexiq.com and 

Barry I. Pershkow, Chapman and Cutler 

LLP, pershkow@chapman.com. 

FOR FURTHER INFORMATION CONTACT: 

Trace W. Rakestraw, Senior Special 

Counsel, at (202) 551–6825 (Division of 

Investment Management, Chief 

Counsel’s Office). 

SUPPLEMENTARY INFORMATION: For 

Applicants’ representations, legal 

analysis, and conditions, please refer to 

Applicants’ application, dated October 

12, 2023, which may be obtained via the 

Commission’s website by searching for 

the file number at the top of this 

document, or for an Applicant using the 

Company name search field on the 

SEC’s EDGAR system. The SEC’s 

EDGAR system may be searched at 

https://www.sec.gov/edgar/searchedgar/ 

legacy/companysearch.html. You may 

also call the SEC’s Public Reference 

Room at (202) 551–8090. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2023–26118 Filed 11–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99009; File No. SR–BOX– 

2023–26] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BOX Rule 5050 

(Series of Options Contracts Open for 

Trading) 

November 21, 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 

15, 2023, BOX Exchange LLC 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

BOX Rule amend BOX Rule 5050 (Series 

of Options Contracts Open for Trading). 

The text of the proposed rule change is 

available from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s internet website at https://

rules.boxexchange.com/rulefilings. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

BOX Rule 5050 (Series of Options 

Contracts Open for Trading) to adopt 

IM–5050–12 to implement a new 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 

(3) preceding calendar months. The 

Exchange also proposes to amend the 

table in IM–5050–11 to harmonize the 

table to the proposed change. This is a 

competitive filing that is based on a 

proposal recently submitted by Miami 

International Securities Exchange, LLC 

(‘‘MIAX’’) approved by the 

Commission.3

Background 

Currently, BOX Rule 5050, Series of 

Options Contracts Open for Trading, 

describes the process and procedures for 

listing and trading series of options 4 on 

the Exchange. IM–5050–3 provides for a 

$2.50 Strike Price Program, where the 

Exchange may select up to 60 option 

classes 5 on individual stocks for which 

the interval of strike prices will be $2.50 

where the strike price is greater than 

$25.00 but less than $50.00.6 IM–5050– 

2 also provides for a $1 Strike Price 

Interval Program, where the interval 

between strike prices of series of 

options 7 on individual stocks may be 

$1.00 or greater provided the strike 

price is $50.00 or less, but not less than 

$1.00.8 Additionally, Rule 5050 

provides for a $0.50 Strike Program.9

The interval of strike prices of series of 

options on individual stocks may be 

$0.50 or greater beginning at $0.50 

where the strike price is $5.50 or less, 

but only for options classes whose 

underlying security closed at or below 

$5.00 in its primary market on the 

previous trading day and which have 

national average daily volume that 

equals or exceeds 1,000 contracts per 

day as determined by The Options 

Clearing Corporation (‘‘OCC’’) during 

the preceding three calendar months. 

The listing of $0.50 strike prices is 

limited to options classes overlying no 

more than 20 individual stocks (the 

‘‘$0.50 Strike Program’’) as specifically 

designated by the Exchange. The 

Exchange may list $0.50 strike prices on 

any other option classes if those classes 

are specifically designated by other 

securities exchanges that employ a 

similar $0.50 Strike Program under their 

respective rules. A stock shall remain in 

the $0.50 Strike Program until otherwise 

designated by the Exchange.10

Proposal 

At this time, the Exchange proposes to 

adopt a new strike interval program for 

stocks that are not in the 

aforementioned $0.50 Strike Program (or 

the Short Term Option Series 

Program) 11 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 (3) preceding calendar 

months. The $0.50 Strike Program 

considers stocks that have a closing 

price at or below $5.00 whereas the 

Exchange’s proposal will consider 


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12See IM–5050–5. 

13While the Exchange may list new strikes on 

underlying stocks that meet the eligibility 

requirements of the new program the Exchange will 

exercise its discretion and will not list strikes on 

underlying stocks the Exchange believes are subject 

to imminent delisting from their primary exchange. 

14The Exchange notes this is the same 

methodology used in the $1 Strike Price Interval 

Program. See IM–5050–2(b)(3). 

15See Exchange Rule 5020(b)(2). 

16See Exchange Rule 5020(f)(3)(ii). 

17See Exchange Rule 6020(b)(7). 

18See 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). 

19See Securities Exchange Act No. 91225 

(February 12, 2021), 86 FR 10375 (February 12, 

2021) (SR–BX–2020–032) (BX Strike Approval 

Order); See also BX Options Strike Proliferation 

Proposal (February 25, 2021) available at: https://

www.nasdaq.com/solutions/bx-options-strikeproliferation-proposal). 

stocks that have a closing price below 

$2.50. Currently, there is a subset of 

stocks that are not included in the $0.50 

Strike Program as a result of the 

limitations of that program which 

provides that the listing of $0.50 strike 

prices shall be limited to option classes 

overlying no more than 20 individual 

stocks as specifically designated by the 

Exchange and requires a national 

average daily volume that equals or 

exceeds 1,000 contracts per day as 

determined by the OCC during the 

preceding three calendar months.12

Therefore, the Exchange is proposing to 

implement a new strike interval 

program termed the ‘‘Low Priced Stock 

Strike Price Interval Program.’’ 

To be eligible for the inclusion in the 

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. 

The Exchange notes that there is no 

limit to the number of classes that will 

be eligible for inclusion in the proposed 

program, provided, of course, that the 

underlying stocks satisfy both the price 

and average daily trading volume 

requirements of the proposed program. 

The Exchange also proposes that after 

a stock is added to the Low Priced Stock 

Strike Price Interval Program, the 

Exchange may list $0.50 strike price 

intervals from $0.50 up to $2.00.13 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 Rule 

5050(b)(1).14 Further, no additional 

series in $0.50 intervals may be listed if 

the underlying stock closes at or above 

$2.50 in its primary market. Additional 

series in $0.50 intervals may not be 

added until the underlying stock again 

closes below $2.50. 

The Exchange’s proposal addresses a 

gap in strike coverage for low priced 

stocks. The $0.50 Strike Program 

considers stocks that close below $5.00 

and limits the number of option classes 

listed to no more than 20 individual 

stocks (provided that the open interest 

criteria is also satisfied). Whereas, the 

Exchange’s proposal has a narrower 

focus, with respect to the underlying’s 

stock price, and is targeted on those 

stocks that close below $2.50 and does 

not limit the number of stocks that may 

participate in the program (provided 

that the average daily trading volume is 

also satisfied). The Exchange does not 

believe that any market disruptions will 

be encountered with the addition of 

these new strikes. 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. 

The Exchange believes that its average 

daily trading volume requirement of 

1,000,000 shares is a reasonable 

threshold to ensure adequate liquidity 

in eligible underlying stocks as it is 

substantially greater than the thresholds 

used for listing options on equities, 

American Depository Receipts, and 

broad-based indexes. Specifically, 

underlying securities with respect to 

which put or call option contracts are 

approved for listing and trading on the 

Exchange must meet certain criteria as 

determined by the Exchange. One of 

those requirements is that trading 

volume (in all markets in which the 

underlying security is traded) has been 

at least 2,400,000 shares in the 

preceding twelve (12) months.15 Rule 

5020(f) provides the criteria for listing 

options on American Depositary 

Receipts (‘‘ADRs’’) if they meet certain 

criteria and guidelines set forth in 

Exchange Rule 5020. One of the 

requirements is that the average daily 

trading volume for the security in the 

U.S. markets over the three (3) months 

preceding the selection of the ADR for 

options trading is 100,000 or more 

shares.16 Finally, the Exchange may 

trade options on a broad-based index 

pursuant to Rule 19b–4(e) of the 

Securities Exchange Act of 1934 

provided a number of conditions are 

satisfied. One of those conditions is that 

each component security that accounts 

for at least one percent (1%) of the 

weight of the index has an average daily 

trading volume of at least 90,000 shares 

during the last six month period.17

Additionally, the Exchange proposes 

to amend the table in IM–5050–11 to 

insert a new column to harmonize the 

Exchange’s proposal to the strike 

intervals for Short Term Options Series 

as described in IM–5050–12. The table 

in IM–5050–11 is intended to limit the 

intervals between strikes for multiply 

listed equity options within the Short 

Term Options Series program that have 

an expiration date more than twentyone 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.18 However, 

the lowest share price column is titled 

‘‘less than $25.’’ The Exchange now 

proposes to insert a column titled ‘‘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 adoption of the 

new proposed column, ‘‘less than 

$2.50.’’ The Exchange believes this 

change will remove any potential 

conflict between the strike intervals 

under the Short Term Options Series 

Program and those described herein 

under the Exchange’s proposal. 

Impact of Proposal 

The Exchange recognizes that its 

proposal will introduce new strikes in 

the marketplace and further 

acknowledges that there has been 

significant effort undertaken by the 

industry to curb strike proliferation. 

This initiative has been spearheaded by 

the Nasdaq BX who filed an initial 

proposal focused on the removal, and 

prevention of the listing, of strikes 

which are extraneous and do not add 

value to the marketplace (the ‘‘Strike 

Interval Proposal’’).19 The Strike 

Interval Proposal was intended to 

remove repetitive and unnecessary 

strike listings across the weekly 

expiries. Specifically, the Strike Interval 

Proposal aimed to reduce the density of 

strike intervals that would be listed in 

the later weeks, by creating limitations 

for intervals between strikes which have 

an expiration date more than twentyVerDate Sep<11>2014 17:19 Nov 27, 2023 Jkt 262001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\28NON1.SGM 28NON1

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20See Securities Exchange Act No. 91225 

(February 12, 2021), 86 FR 10375 (February 12, 

2021) (SR–BX–2020–032). 

21See id. 

22See proposed IM–5050–12 which requires that 

an underlying stock have an average daily trading 

volume of 1,000,000 shares for the three (3) 

preceding months to be eligible for inclusion in the 

Low Priced Stock Strike Price Interval Program. 

23The term ‘‘Participant’’ means a firm, or 

organization that is registered with the Exchange 

pursuant to the Rule 2000 Series for purposes of 

participating in trading on a facility of the Exchange 

and includes an ‘‘Options Participant’’. See 

Exchange Rule 100. 

24 15 U.S.C. 78f(b). 

25 15 U.S.C. 78f(b)(5). 

26See Yahoo! Finance, https://

finance.yahoo.com/quote/SOND/history?p=SOND 

(last visited August 10, 2023). 27See Yahoo! Finance, https://

finance.yahoo.com/quote/CTXR/history?p=CTXR 

(last visited August 10, 2023). 

one days from the listing date.20 The 

Strike Interval Proposal took into 

account OCC customer-cleared volume, 

using it as an appropriate proxy for 

demand. The Strike Interval Proposal 

was designed to maintain strikes where 

there was customer demand and 

eliminate strikes where there wasn’t. At 

the time of its proposal Nasdaq BX 

estimated that the Strike Interval 

Proposal would reduce the number of 

strikes it listed by 81,000.21 The 

Exchange proposes to amend the table 

to define the strike interval at $0.50 for 

underlying stocks with a share price of 

less than $2.50. The Exchange believes 

this amendment will harmonize the 

Exchange’s proposal with the Strike 

Interval Proposal described above. 

The Exchange recognizes that its 

proposal will moderately increase the 

total number of option series available 

on the Exchange. However, the 

Exchange’s proposal is designed to only 

add strikes where there is investor 

demand 22 which will improve market 

quality. Under the requirements for the 

Low Priced Stock Strike Price Interval 

Program as described herein, the 

Exchange determined that as of August 

9, 2023, 106 symbols met the proposed 

criteria. Of those symbols 36 are 

currently in the $1 Strike Price Interval 

Program with $1.00 and $2.00 strikes 

listed. Under the Exchange’s proposal 

the Exchange would add the $0.50 and 

$1.50 strikes for these symbols for the 

current expiration terms. The remaining 

70 symbols eligible under the 

Exchange’s proposal would have $0.50, 

$1.00, $1.50 and $2.00 strikes added to 

their current expiration terms. 

Therefore, for the 106 symbols eligible 

for the Low Priced Stock Strike Price 

Interval Program a total of 

approximately 3,250 options would be 

added. As of August 9, 2023, the 

Exchange listed 1,106,550 options, 

therefore the additional options that 

would be listed under this proposal 

would represent a very minor increase 

of 0.294% in the number of options 

listed on the Exchange. 

The Exchange does not believe that its 

proposal contravenes the industry’s 

efforts to curtail unnecessary strikes. 

The Exchange’s proposal is targeted to 

only underlying stocks that close at less 

than $2.50 and that also meet the 

average daily trading volume 

requirement. Additionally, because the 

strike increment is $0.50 there are only 

a total of four strikes that may be listed 

under the program ($0.50, $1.00, $1.50, 

and $2.00) for an eligible underlying 

stock. Finally, if an eligible underlying 

stock is in another program (e.g., the 

$0.50 Strike Program or the $1 Strike 

Price Interval Program) the number of 

strikes that may be added is further 

reduced if there are pre-existing strikes 

as part of another strike listing program. 

Therefore, the Exchange does not 

believe that it will list any unnecessary 

or repetitive strikes as part of its 

program, and that the strikes that will be 

listed will improve market quality and 

satisfy investor demand. 

The Exchange further 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. The Exchange 

also believes that Participants 23 will not 

have a capacity issue as a result of the 

proposed rule change. Finally, the 

Exchange believes that the additional 

options will serve to increase liquidity, 

provide additional trading and hedging 

opportunities for all market 

participants, and improve market 

quality. 

Implementation 

The Exchange will issue a notice to 

Participants via Regulatory Notice with 

appropriate advanced notice 

announcing the implementation date of 

the proposed rule change. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Act,24 in general, and Section 6(b)(5) of 

the Act,25 in particular, in that it is 

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 

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. In particular, the 

Exchange believes its proposal promotes 

just and equitable principles of trade 

and removes impediments to and 

perfects the mechanisms of a free and 

open market and a national market 

system as the Exchange has identified a 

subset of stocks that are trading under 

$2.50 and do not have meaningful 

strikes available. For example, 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.26 Currently 

the lowest strike listed is for $2.50, 

making the lowest strike 400% away 

from the closing stock price. Another 

symbol, CTXR, 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.27

Similarly, the lowest strike listed is for 

$2.50, making the lowest strike more 

than 170% away from the closing stock 

price. Currently, such products have no 

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

puts. The Exchange’s proposal will 

provide additional strikes in $0.50 

increments from $0.50 up to $2.00 to 

provide more meaningful trading and 

hedging opportunities for this subset of 

stocks. Given the increased granularity 

of strikes as proposed under the 

Exchange’s proposal out-of-the-money 

puts and in-the-money calls will be 

created. The Exchange believes this will 

allow market participants to tailor their 

investment and hedging needs more 

effectively. 

The Exchange believes its proposal 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanisms of a free 

and open market and a national market 

system and, in general, protects 

investors and the public interest by 

adding strikes that improves market 

quality and satisfies investor demand. 

The Exchange does not believe that the 

number of strikes that will be added 

under the program will negatively 

impact the market. Additionally, the 

proposal does not run counter to the 

efforts undertaken by the industry to 

curb strike proliferation as that effort 

focused on the removal and prevention 

of extraneous strikes where there was no 

investor demand. The Exchange’s 

proposal requires the satisfaction of an 

average daily trading volume threshold 

in addition to the underlying stock 

closing at a price below $2.50 to be 


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28See supra note 15. 

29See supra note 16. 

30See supra note 17. 

31See Exchange Rule 5020(a)(1) and (2). 

32See Exchange Rule 5020(b)(1),(2),(3) and (4). 

33See supra note 3. 

34 15 U.S.C. 78s(b)(3)(A). 

35 17 CFR 240.19b–4(f)(6). 

36 In addition, Rule 19b–4(f)(6) requires a selfregulatory organization to give the Commission 

written notice of its intent to file the proposed rule 

change at least five business days prior to the date 

of filing of the proposed rule change, or such 

Continued 

eligible for the program. The Exchange 

believes that the average daily trading 

volume threshold of the program 

ensures that only strikes with investor 

demand will be listed and fills a gap in 

strike interval coverage as described 

above. Further, being that the strike 

interval is $0.50, there are only a 

maximum of four strikes that may be 

added ($0.50, $1.00, $1.50, and $2.00). 

Therefore, the Exchange does not 

believe that its proposal will undermine 

the industry’s efforts to eliminate 

repetitive and unnecessary strikes in 

any fashion. 

The Exchange believes that its average 

daily trading volume threshold 

promotes just and equitable principles 

of trade and removes impediments to 

and perfects the mechanisms of a free 

and open market and a national market 

system and, in general, protects 

investors and the public interest as it is 

designed to permit only those stocks 

with demonstrably high levels of trading 

activity to participate in the program. 

The Exchange notes that its average 

daily trading volume requirement is 

substantially greater that the average 

daily trading requirement currently in 

place on the Exchange for options on 

equity underlyings,28 ADRs,29 and 

broad-based indexes.30

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b)(1) of the Act, which 

provides that the Exchange be organized 

and have the capacity to be able to carry 

out the purposes of the Act and the 

rules and regulations thereunder, and 

the rules of the Exchange. The proposed 

rule change allows the Exchange to 

respond to customer demand to provide 

meaningful strikes for low priced stocks. 

The Exchange does not believe that the 

proposed rule would create any capacity 

issue or negatively affect market 

functionality. Additionally, the 

Exchange represents that it has the 

necessary systems capacity to support 

the new options series and handle 

additional messaging traffic associated 

with this proposed rule change. The 

Exchange also believes that its 

Participants will not experience any 

capacity issues as a result of this 

proposal. In addition, the Exchange 

represents that it believes that 

additional strikes for low priced stocks 

will serve to increase liquidity available 

as well and improve price efficiency by 

providing more trading opportunities 

for all market participants. The 

Exchange believes that the proposed 

rule change will benefit investors by 

giving them increased opportunities to 

execute their investment and hedging 

decisions. 

Finally, the Exchange believes its 

proposal is designed to prevent 

fraudulent and manipulative acts and 

practices as options may only be listed 

on underlyings that satisfy the listing 

requirements of the Exchange as 

described in Exchange Rule 5020, 

Criteria for Underlying Securities. 

Specifically, Rule 5020 requires that 

underlying securities for which put or 

call option contracts are approved for 

listing and trading on the Exchange 

must meet the following criteria: (1) the 

security must be registered and be an 

‘‘NMS stock’’ as defined in Rule 600 of 

Regulation NMS under the Exchange 

Act; (2) the security shall be 

characterized by a substantial number of 

outstanding shares that are widely held 

and actively traded.31 Additionally, 

Rule 5020 provides that absent 

exceptional circumstances, an 

underlying security will not be selected 

for options transactions unless: (1) there 

are a minimum of seven (7) million 

shares of the underlying security which 

are owned by persons other than those 

required to report their stock holdings 

under Section 16(a) of the Exchange 

Act; (2) there are a minimum of 2,000 

holders of the underlying security; (3) 

the issuer is in compliance with any 

applicable requirements of the Exchange 

Act; and (4) trading volume (in all 

markets in which the underlying 

security is traded) has been at least 

2,400,000 shares in the preceding 

twelve (12) months.32 The Exchange’s 

proposal does not impact the eligibility 

of an underlying stock to have options 

listed on it, but rather addresses only 

the listing of new additional option 

classes on an underlying listed on the 

Exchange in accordance to the 

Exchange’s listings rules. As such, the 

Exchange believes that the listing 

requirements described in Exchange 

Rule 5020 address potential concerns 

regarding possible manipulation. 

Additionally, in conjunction with the 

proposed Average Daily Volume 

requirement described herein, the 

Exchange believes any possible market 

manipulation is further mitigated. 

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. In this regard 

and as indicated above, the Exchange 

notes that the rule change is being 

proposed as a competitive response to a 

filing submitted by MIAX that was 

recently approved by the Commission.33

The Exchange does not believe that its 

proposed rule change will impose any 

burden on intra-market competition as 

the Rules of the Exchange apply equally 

to all Participants of the Exchange and 

all Participants may trade the new 

proposed strikes if they so choose. 

Specifically, the Exchange believes that 

investors and market participants will 

significantly benefit from the 

availability of finer strike price intervals 

for stocks priced below $2.50, which 

will allow them to tailor their 

investment and hedging needs more 

effectively. 

The Exchange does not believe that its 

proposed rule change will impose any 

burden on inter-market competition, as 

nothing prevents other options 

exchanges from proposing similar rules 

to list and trade options on low priced 

stocks. Rather the Exchange believes 

that its proposal will promote intermarket competition, as the Exchange’s 

proposal will result in additional 

opportunities for investors to achieve 

their investment and trading objectives, 

to the benefit of investors, market 

participants, and the marketplace in 

general. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 34 and Rule 19b–4(f)(6) 35

thereunder, the Exchange has 

designated this proposal as one that 

effects a change that: (i) does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) by its terms, does 

not become operative for 30 days after 

the date of the filing, or such shorter 

time as the Commission may designate 

if consistent with the protection of 

investors and the public interest.36


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83184 Federal Register / Vol. 88, No. 227 / Tuesday, November 28, 2023 / Notices 

shorter time as designated by the Commission. The 

Exchange has satisfied this requirement. 

37 17 CFR 240.19b–4(f)(6)(iii). 

38See supra note 3. 

39For 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). 40 17 CFR 200.30–3(a)(12), (59). 

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act normally does not become operative 

for 30 days after the date of its filing. 

However, Rule 19b–4(f)(6)(iii) 37 permits 

the Commission to designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange requested that 

the Commission waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission notes it has 

approved a proposed rule change 

substantially identical to the one 

proposed by the Exchange.38 The 

proposed change raises no novel legal or 

regulatory issues. Therefore, the 

Commission believes that waiver of the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.39

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. 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–2023–26 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–2023–26. 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–2023–26 and should be 

submitted on or before December 19, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.40

Christina Z. Milnor, 

Assistant Secretary. 

[FR Doc. 2023–26113 Filed 11–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

35056; 812–15506] 

Meketa Infrastructure Fund and Meketa 

Capital, LLC 

November 21, 2023. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’ or ‘‘SEC’’). 

ACTION: Notice. 

Notice of an application under section 

6(c) of the Investment Company Act of 

1940 (the ‘‘Act’’) for an exemption from 

sections 18(a)(2), 18(c) and 18(i) of the 

Act, under sections 6(c) and 23(c) of the 

Act for an exemption from rule 23c–3 

under the Act, and for an order pursuant 

to section 17(d) of the Act and rule 17d– 

1 under the Act. 

SUMMARY OF APPLICATION: Applicants 

request an order to permit certain 

registered closed-end investment 

companies to issue multiple classes of 

shares and to impose early withdrawal 

charges and asset-based distribution 

and/or service fees. 

APPLICANTS: Meketa Infrastructure Fund 

and Meketa Capital, LLC. 

FILING DATES: The application was filed 

on September 14, 2023, and amended 

on October 17, 2023. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the requested relief will 

be issued unless the Commission orders 

a hearing. Interested persons may 

request a hearing on any application by 

emailing the SEC’s Secretary at 

Secretarys-Office@sec.gov and serving 

the Applicants with a copy of the 

request by email, if an email address is 

listed for the relevant Applicant below, 

or personally or by mail, if a physical 

address is listed for the relevant 

Applicant below. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on December 18, 2023, and 

should be accompanied by proof of 

service on the Applicants, in the form 

of an affidavit, or, for lawyers, a 

certificate of service. Pursuant to rule 0– 

5 under the Act, hearing requests should 

state the nature of the writer’s interest, 

any facts bearing upon the desirability 

of a hearing on the matter, the reason for 

the request, and the issues contested. 

Persons who wish to be notified of a 

hearing may request notification by 

emailing the Commission’s Secretary. 

ADDRESSES: The Commission: 

Secretarys-Office@sec.gov. Applicants: 

Chelsea Childs, Esq., Ropes & Gray LLP, 

Chelsea.Childs@ropesgray.com. 

FOR FURTHER INFORMATION CONTACT: 

Trace W. Rakestraw, Senior Special 

Counsel, at (202) 551–6825 (Division of 

Investment Management, Chief 

Counsel’s Office). 

SUPPLEMENTARY INFORMATION: For 

Applicants’ representations, legal 

analysis, and conditions, please refer to 

Applicants’ application, dated October 

17, 2023, which may be obtained via the 

Commission’s website by searching for 

the file number at the top of this 

document, or for an Applicant using the 

Company name search field on the 

SEC’s EDGAR system. The SEC’s 

EDGAR system may be searched at 

https://www.sec.gov/edgar/searchedgar/ 


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