Federal Register / Vol. 88, No. 227 / Tuesday, November 28, 2023 / Notices 83179 

25See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

26NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca–2006–21)). 

27 15 U.S.C. 78s(b)(3)(A). 

28 17 CFR 240.19b–4(f). 29 17 CFR 200.30–3(a)(12). 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 

and, also, recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 25 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers.’ . . .’’.26 Accordingly, the 

Exchange does not believe its proposed 

fee change imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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) 

of the Act 27 and paragraph (f) of Rule 

19b–4 28 thereunder. 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 will institute proceedings 

to determine whether the proposed rule 

change 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– 

CboeEDGA–2023–020 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–CboeEDGA–2023–020. 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–CboeEDGA–2023–020 and should 

be submitted on or before December 19, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Christina Z. Milnor, 

Assistant Secretary. 

[FR Doc. 2023–26189 Filed 11–27–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

35055; 812–15514] 

IndexIQ Active ETF Trust and IndexIQ 

Advisors 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 (‘‘Act’’) for an exemption from 

section 15(a) of the Act, as well as from 

certain disclosure requirements in rule 

20a–1 under the Act, Item 19(a)(3) of 

Form N–1A, Items 22(c)(1)(ii), 

22(c)(1)(iii), 22(c)(8) and 22(c)(9) of 

Schedule 14A under the Securities 

Exchange Act of 1934, and sections 6– 

07(2)(a), (b), and (c) of Regulation S–X 

(‘‘Disclosure Requirements’’). 

Summary of Application: The requested 

exemption would permit Applicants to 

enter into and materially amend 

subadvisory agreements with 

subadvisers without shareholder 

approval and would grant relief from 

the Disclosure Requirements as they 

relate to fees paid to the subadvisers. 

Applicants: IndexIQ Active ETF Trust 

and IndexIQ Advisors LLC. 

Filing Dates: The application was filed 

on October 12, 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 


lotter on DSK11XQN23PROD with NOTICES1
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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