Federal Register / Vol. 88, No. 226 / Monday, November 27, 2023 / Notices 82921 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

requested. Inservice Testing (IST) 

Program Test and Examination Plans 

must be submitted within 90 days of 

their implementation for the applicable 

120-month IST Program interval. 

6. Who will be required or asked to 

respond: Licensees and applicants for or 

holders of an operating license or 

construction permit, applicants for a 

standard design certification under part 

52 of title 10 of the Code of Federal 

Regulations (10 CFR) of this chapter, or 

an applicant for or holder of a standard 

design approval, or a combined license. 

7. The estimated number of annual 

responses: 754 (660 reporting responses 

plus 94 recordkeepers). 

8. The estimated number of annual 

respondents: 94. 

9. The estimated number of hours 

needed annually to comply with the 

information collection requirement or 

request: 336,416 (119,276 reporting + 

217,140 recordkeeping). 

10. Abstract: Paragraph 50.55a, 

‘‘Codes and Standards,’’ specifies 

technical information and data to be 

provided to the NRC or maintained by 

applicants and licensees so that the NRC 

may take determinations necessary to 

protect the health and safety of the 

public, in accordance with the Atomic 

Energy Act of 1954, as amended. The 

reporting and recordkeeping 

requirements contained in 10 CFR 

50.55a are mandatory for the affected 

licensees and applicants. 

Dated: November 21, 2023. 

For the Nuclear Regulatory Commission. 

David C. Cullison, 

NRC Clearance Officer, Office of the Chief 

Information Officer. 

[FR Doc. 2023–26068 Filed 11–24–23; 8:45 am] 

BILLING CODE 7590–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

Announcement of OMB Approvals of 

Information Collections 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Notice of OMB approvals. 

SUMMARY: The Office of Management 

and Budget (OMB) has approved 

Pension Benefit Guaranty Corporation 

(PBGC) information collections under 

the Paperwork Reduction Act. This 

notice lists the approved information 

collections and provides their 

corresponding OMB control number and 

current expiration date. 

FOR FURTHER INFORMATION CONTACT: 

Monica O’Donnell (o’donnell.monica@

pbgc.gov), Attorney, Regulatory Affairs 

Division, Office of the General Counsel, 

Pension Benefit Guaranty Corporation, 

445 12th Street SW, Washington, DC 

20024–2101; 202–229–8706. If you are 

deaf or hard of hearing or have a speech 

disability, please dial 7–1–1 to access 

telecommunications relay services. 

SUPPLEMENTARY INFORMATION: The 

Paperwork Reduction Act of 1995 (PRA) 

(44 U.S.C. 3501 et seq.) and its 

implementing regulations require 

Federal agencies, after receiving OMB 

approval of information collections, to 

display OMB control numbers and 

inform respondents of their legal 

significance. In accordance with those 

requirements, PBGC hereby notifies the 

public that the following information 

collections, that are contained in 

PBGC’s regulations and do not have a 

corresponding form, have been 

approved by OMB. 

• OMB Control Number 1212–0063 

Filings for Reconsiderations. The 

expiration date for this information 

collection contained in 29 CFR part 

4003 is August 31, 2025. 

• OMB Control Number 1212–0021 

Variances for Sale of Assets. The 

expiration date for this information 

collection contained in 29 CFR part 

4204 is May 31, 2026. 

• OMB Control Number 1212–0023 

Extension of Special Withdrawal 

Liability Rules. The expiration date for 

this information collection contained in 

29 CFR part 4203 is May 31, 2026. 

• OMB Control Number 1212–0031 

Procedures for PBGC Approval of Plan 

Amendments. The expiration date for 

this information collection contained in 

29 CFR part 4220 is May 31, 2026. 

• OMB Control Number 1212–0034 

Notice, Collection, and Redetermination 

of Withdrawal Liability. The expiration 

date of this information collection 

contained in 29 CFR part 4219 is May 

31, 2026. 

• OMB Control Number 1212–0035 

Allocating Unfunded Vested Benefits. 

The expiration date for this information 

collection contained in 29 CFR part 

4211 is May 31, 2026. 

• OMB Control Number 1212–0039 

Reduction or Waiver of Partial 

Withdrawal Liability. The expiration 

date for this information collection 

contained in 29 CFR part 4208 is May 

31, 2026. 

• OMB Control Number 1212–0044 

Reduction or Waiver of Complete 

Withdrawal Liability. The expiration 

date for this information collection 

contained in 29 CFR part 4207 is May 

31, 2026. 

• OMB Control Number 1212–0017 

Liability for Termination of SingleEmployer Plans. The expiration date for 

this information collection contained in 

29 CFR part 4062 is August 31, 2026. 

The PRA provides that 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 OMB control number. 

Publication of this notice satisfies this 

requirement with respect to the abovelisted information collections, as 

provided in 5 CFR 1320.5(b)(2)(ii). 

Issued in Washington, DC. 

Hilary Duke, 

Assistant General Counsel for Regulatory 

Affairs, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2023–26067 Filed 11–24–23; 8:45 am] 

BILLING CODE 7709–02–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98987; File No. SR–BOX– 

2023–29] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Rules To 

Adopt Monthly Options Series 

November 20, 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 

17, 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 Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 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 its 

Rules to adopt Monthly Options Series. 

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. 


khammond on DSKJM1Z7X2PROD with NOTICES
82922 Federal Register / Vol. 88, No. 226 / Monday, November 27, 2023 / Notices 

5See Securities Exchange Act Release No. 98915 

(November 13, 2023) (SR–CBOE–2023–049) (Order 

Approving a Proposed Rule Change to Adopt 

Monthly Options Series). 

6The Exchange proposes to amend Rule 5050(a) 

to provide that proposed IM–5050–13 will describe 

how the Exchange will fix a specific expiration date 

and exercise price for Monthly Options Series and 

that proposed IM–5050–13 will govern the 

procedures for opening Monthly Options Series, 

respectively. This is consistent with language in 

current Rule 5050(a) for other Short Term Option 

Series and Quarterly Options Series. 

7The Exchange’s proposal is based on a CBOE 

proposal and the Exchange believes that other 

options exchanges will adopt similar programs in 

the future. 

8The Exchange notes this provision considers 

consecutive monthly listings. In other words, as 

other expirations (such as Quarterly Option Series) 

are not counted as part of the maximum, those 

expirations would not be considered when 

considering when the last expiration date would be 

if the maximum number were listed consecutively. 

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. This is because, if Quarterly 

Option Series, for example, were counted, the 

Exchange would otherwise never be able to list the 

maximum number of Monthly Options Series. This 

is consistent with the listing provisions for 

Quarterly Options Series, which permit give 

calendar quarter expirations. The need to list series 

with the same expiration in the current calendar 

year and the following calendar year (whether 

Monthly or Quarterly expiration) is to allow market 

participants to execute one-year strategies pursuant 

to which they may roll their exposures in the 

longer-dated options (e.g., January 2025) prior to the 

expiration of the nearer-dated option (e.g., January 

2024). 

9See proposed IM–5050–13(2) and proposed IM– 

6090–4(ii). 

10See proposed IM–5050–13(3) and proposed 

IM–6090–4(iii). 

11See proposed IM–5050–13(4) and proposed 

IM–6090–4(iv). The Exchange notes these proposed 

provisions are consistent with the initial series 

provision for the Quarterly Options Series program 

in IM–5050–4(d). While different than the initial 

strike listing provision for the Quarterly Options 

Series program in current IM–5050–4(c), the 

Exchange believes the proposed provision is 

appropriate, as it contemplates classes that may 

have strike intervals of $5 or greater. For 

consistency, the Exchange also proposes to amend 

IM–5050–4(c) to incorporate the same provision for 

initial series. 

12See proposed IM–5050–13(5) and proposed 

IM–6090–4(v). 

13See proposed IM–5050–13(6) and proposed 

IM–6090–4(vi); see also Rule 5050, IM–5050–1 

(Strike Price Intervals), IM–5050–2 ($1 Strike Price 

Interval Program), IM–5050–3 ($2.50 Strike Price 

Program) and Rule 6090(c) (Procedures for Adding 

and Deleting Strike Prices). 

14The Exchange also proposes to make a 

nonsubstantive change to IM–5050–6 and IM–6090– 

2 to change current references to ‘‘monthly options 

series’’ to ‘‘standard expiration 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’’ 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. 

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 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 

Options Series’’). This is a competitive 

filing that is based on a proposal 

recently submitted Cboe Exchange, Inc 

(‘‘CBOE’’).5

The Exchange proposes 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 

Options Series’’). Pursuant to proposed 

IM–5050–13(1) and proposed IM–6090– 

4(i), the Exchange may list Monthly 

Options Series for up to five currently 

listed option classes that are either 

index options or options on exchangetraded funds (‘‘ETFs’’).6 In addition, the 

Exchange may also list Monthly Options 

Series on any options classes that are 

selected by other securities exchanges 

that employ a similar program under 

their respective rules.7 The Exchange 

may list 12 expirations for Monthly 

Options Series. Monthly Options 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.8 Other expirations in the 

same class are not counted as part of the 

maximum numbers of Monthly Options 

Series expirations for a class.9 Monthly 

Options Series will be P.M.-settled.10

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. 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. The 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.11 Additional Monthly 

Options Series of the same class may be 

open for trading on the Exchange when 

the Exchange deems it necessary to 

maintain an orderly market, to meet 

customer demand, or when the market 

price of the underlying security moves 

substantially from the initial exercise 

price or prices. To the extent that any 

additional strike prices are listed by the 

Exchange, such additional strike prices 

will be within 30% above or below the 

closing price of the underlying index or 

security on the preceding day. The 

Exchange may also open additional 

strike prices of Monthly Options Series 

that are more than 30% above or below 

the current price of the underlying 

security, provided that demonstrated 

customer interest exists for such series, 

as expressed by institutional, corporate, 

or individual customers or their brokers. 

Market Makers trading for their own 

account will not be considered when 

determining customer interest under 

this provision. The opening of the new 

Monthly Options Series will not affect 

the series of options of the same class 

previously opened.12 The interval 

between strike prices on Monthly 

Options Series will be the same as the 

interval for strike prices for series in 

that same options class that expire in 

accordance with the normal monthly 

expiration cycle.13

By definition, Monthly Options Series 

can never 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. Therefore, to avoid any 

confusion in the marketplace, the 

Exchange proposes to amend IM–5050– 

6 and IM–6090–2 to provide 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.14

Similarly, proposed IM–5050–13(2) and 

IM–6090–4(ii) provide that no Monthly 


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Federal Register / Vol. 88, No. 226 / Monday, November 27, 2023 / Notices 82923 

15The 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 A.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 and both 

of which expire on a Friday. The Exchange believes 

this concurrent listing would provide investors 

with yet another hedging mechanism and is 

reasonable given these series would not be identical 

(unlike if they were both P.M-settled). This could 

not occur with respect to ETFs, as all Short Term 

Options Series on ETFs are P.M.-settled. 

16See proposed IM–5050–13(7) and proposed 

IM–6090–4(vii). Pursuant to Rule 3140, exercise 

limits for impacted index and ETF classes would be 

equal to the applicable position limits. For an 

Options Participant that has been granted an 

exemption to position limits pursuant Rule 3130(c) 

(Exemption to Position Limits), the number of 

contracts which can be exercised over a five (5) 

business day period shall equal the Options 

Participant’s exempted position. 

17See proposed IM–3120–5 (regarding positions 

in options contracts on the same underlying 

security), Rule 6040(d) (regarding position limits for 

Broad-Based Index Options), and Rule 6050(d) 

(regarding position limits for Industry Index 

Options). The Exchange notes the proposed rule 

change adds IM–3120–5 to state that 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 3120. 

18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(5). 

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.15

With respect to Monthly Options 

Series added pursuant to proposed IM– 

5050–13(1) through (6) and proposed 

IM–6090–4(i) through (vi), 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. 

Notwithstanding this delisting policy, 

customer requests to add strikes and/or 

maintain strikes in Monthly Options 

Series in series eligible for delisting will 

be granted. 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.16

The Exchange believes that Monthly 

Options Series will provide investors 

with another flexible and valuable tool 

to manage risk exposure, minimize 

capital outlays, and be more responsive 

to the timing of events affecting the 

securities that underlie option contracts. 

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 the Options Price 

Reporting Authority’s (‘‘OPRA’s’’) 

quoting capacity. The Exchange 

represents it has the necessary systems 

capacity to support new options series 

that will result from the introduction of 

Monthly Options Series. The Exchange 

also proposes to amend Rules 3120, 

6040, and 6050 to provide that positions 

in Monthly Options Series will be 

aggregated with positions in options 

contracts on the same underlying 

security or index.17 This is consistent 

with how position (and exercise) limits 

are currently imposed on series with 

other expirations (Short Term Options 

Series and Quarterly Options Series). 

Therefore, positions in options within 

class of index or ETF options, regardless 

of their expirations, would continue to 

be subject to existing position (and 

exercise) limits. The Exchange believes 

this will address potential manipulative 

schemes and adverse market impacts 

surrounding the use of options. 

The Exchange also represents its 

current surveillance programs will 

apply to Monthly Options Series and 

will properly monitor trading in the 

proposed Monthly Options Series. The 

Exchange currently lists Quarterly 

Options Series in certain ETF classes, 

which expire at the close of business at 

the end of four calendar months (i.e., the 

end of each calendar quarter), and has 

not experienced any market disruptions 

nor issues with capacity. The 

Exchange’s surveillance programs 

currently in place to support and 

properly monitor trading in these 

Quarterly Options Series, as well as 

Short Term Option Series and standard 

expiration series, will apply to the 

proposed Monthly Options Series. 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 that the 

Exchange determines to list for trading. 

Ultimately, 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. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),18 in general, and Section 6(b)(5) 

of the Act,19 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 the introduction of 

Monthly Options Series will remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system by 

expanding hedging tools available to 

market participants. The Exchange 

believes the proposed monthly 

expirations will allow market 

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. Further, the 

Exchange believes the availability of 

Monthly Options Series would protect 

investors and the public interest by 

providing investors with more 

flexibility to closely tailor their 

investment and hedging decisions in 

these options, thus allowing them to 

better manage their risk exposure. 

The Exchange believes the Quarterly 

Options Series Program has been 

successful to date and the proposed 

Monthly Options Series program simply 

expands the ability of investors to hedge 

risk against market movements 

stemming from economic releases or 

market events that occur at months’ 

ends in the same way the Quarterly 


khammond on DSKJM1Z7X2PROD with NOTICES
82924 Federal Register / Vol. 88, No. 226 / Monday, November 27, 2023 / Notices 

20Compare proposed IM–5050–13 and proposed 

IM–6090–4 to IM–5050–4 and IM–6090–1, 

respectively. 21See IM–5050–4 and IM–6090–1. 

Options Series Program has expanded 

the landscape of hedging for quarter-end 

news. Monthly Options Series will also 

complement Short Term Options Series, 

which allow investors to hedge risk 

against events that occur throughout a 

month. The Exchange believes the 

availability of additional expirations 

should create greater trading and 

hedging opportunities for investors, as 

well as provide investors with the 

ability to tailor their investment 

objectives more effectively. 

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.20

Quarterly Options Series expire on the 

last business day of a calendar quarter, 

which is the last business day of every 

third month. The proposed Monthly 

Options Series would fill the gaps 

between Quarterly Options Series 

expirations by permitting series to 

expire on the last business day of every 

month, rather than every third month. 

The proposed Monthly Options Series 

may be listed in accordance with the 

same terms as Quarterly Options Series, 

including permissible strikes. As is the 

case with Quarterly Options Series, no 

Short Term Options Series may expire 

on the same day as a Monthly Options 

Series. Similarly, as proposed, no 

Monthly Options Series may expire on 

the same day as a Quarterly Options 

Series. The Exchange believes 

preventing listing series with concurrent 

expirations in a class will eliminate 

potential investors confusion and thus 

protect investors and the public interest. 

Given that Quarterly Options Series the 

Exchange currently lists are essentially 

Monthly Options Series that can expire 

at the end of only certain calendar 

months, the Exchange believes it is 

reasonable to list Monthly Options 

Series in accordance with the same 

terms, as it will promote just and 

equitable principles of trade. 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 OPRA’s quoting 

capacity. The Exchange represents it has 

the necessary systems capacity to 

support new options series that will 

result from the introduction of Monthly 

Options Series. 

The Exchange further believes the 

proposed rule change regarding the 

treatment of Monthly Options Series 

with respect to determining compliance 

with position and exercise limits is 

designed to prevent fraudulent and 

manipulative acts and practices and 

promote just and equitable principles of 

trade. Monthly Options Series will be 

aggregated with options overlying the 

same ETF or index for purposes of 

compliance with position (and exercise) 

limits, which is consistent with how 

position (and exercise) limits are 

currently imposed on series with other 

expirations (Short Term Options Series 

and Quarterly Options Series). 

Therefore, options positions within ETF 

or index option classes for which 

Monthly Options Series are listed, 

regardless of their expirations, would 

continue to be subject to existing 

position (and exercise) limits. The 

Exchange believes this will address 

potential manipulative schemes and 

adverse market impacts surrounding the 

use of options. The Exchange also 

represents its current surveillance 

programs will apply to Monthly Options 

Series and will properly monitor trading 

in the proposed Monthly Options 

Series. The Exchange currently trades 

Quarterly Options Series in certain ETF 

classes, which expire at the close of 

business at the end of four calendar 

months (i.e., the end of each calendar 

quarter), and has not experienced any 

market disruptions nor issues with 

capacity. The Exchange’s surveillance 

programs currently in place to support 

and properly monitor trading in these 

Quarterly Options Series, as well as 

Short Term Option Series and standard 

expiration series, will apply to the 

proposed Monthly Options Series. 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 that the 

Exchange determines to list for trading. 

Ultimately, 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 ETF or 

index) and reporting requirements 

would continue to apply. 

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 CBOE. 

The Exchange does not believe the 

proposed rule change to list Monthly 

Options Series will impose any burden 

on intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as any 

Monthly Options Series the Exchange 

lists for trading will be available in the 

same manner for all market participants 

who wish to trade such options. 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.21 Quarterly Options Series 

expire on the last business day of a 

calendar quarter, which is the last 

business day of every third month, 

making the concept of Monthly Options 

Series in a limited number of index and 

ETF options not novel. The proposed 

Monthly Options Series will fill the 

gaps between Quarterly Options Series 

expirations by permitting series to 

expire on the last business day of every 

month, rather than every third month. 

The proposed Monthly Options Series 

may be listed in accordance with the 

same terms as Quarterly Options Series, 

including permissible strikes. Monthly 

Options Series will trade on the 

Exchange in the same manner as other 

options in the same class. The Exchange 

does not believe the proposed rule 

change to list Monthly Options Series 

will impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act, as nothing prevents 

other options exchanges from proposing 

similar rules. As discussed above, the 

proposed rule change would permit 

listing of Monthly Options Series in five 

index or ETF options, as well as any 

other classes that other exchanges may 

list under similar programs. To the 

extent that the availability of Monthly 

Options Series makes the Exchange a 

more attractive marketplace to market 

participants at other exchanges, market 

participants are free to elect to become 

market participants on the Exchange. 

The Exchange believes that the 

proposed rule change may relieve any 

burden on, or otherwise promote, 

competition. Similar to Short Term 

Options Series and Quarterly Options 

Series, the Exchange believes the 

introduction of Monthly Options Series 

will not impose an undue burden on 

competition. The Exchange believes that 

it will, among other things, expand 

hedging tools available to market 

participants. The Exchange believes 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 88, No. 226 / Monday, November 27, 2023 / Notices 82925 

22 15 U.S.C. 78s(b)(3)(A)(iii). 

23 17 CFR 240.19b–4(f)(6). 

24 15 U.S.C. 78s(b)(3)(A)(iii). 

25 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

26 17 CFR 240.19b–4(f)(6). 

27 17 CFR 240.19b–4(f)(6)(iii). 

28See supra, note 5, order approving CBOE’s 

proposed rule change. 

29For 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). 30 17 CFR 200.30–3(a)(12), (59). 

Monthly Options Series will allow 

market participants to purchase options 

based on their timing as needed and 

allow them to tailor their investment 

and hedging needs more effectively. The 

Exchange does not believe the proposed 

rule change to provide that positions in 

Monthly Options Series will be 

aggregated with positions in options 

contracts on the same underlying index 

or security for purposes of determining 

compliance with position (and exercise) 

limits will impose any burden on 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as it will 

apply in the same manner to all market 

participants. The Exchange proposes to 

apply position (and exercise) limits to 

Monthly Options Series in the same 

manner it applies position limits to 

series with other expirations (Short 

Term Options Series and Quarterly 

Options Series). Therefore, positions in 

options in a class of ETF or index 

options, regardless of their expirations, 

would continue to be subject to existing 

position (and exercise) limits. 

Additionally, the Exchange does not 

believe this proposed change will 

impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act, because it will 

address potential manipulative schemes 

and adverse market impacts 

surrounding the use of options. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 22 and Rule 

19b–4(f)(6) thereunder.23 Because the 

foregoing proposed rule change does 

not: (i) significantly affect the protection 

of investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

for 30 days from the date on which it 

was filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 24 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.25

A proposed rule change filed 

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

Act 26 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 27

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has 

requested that the Commission waive 

the 30-day operative delay so that the 

Exchange may establish Monthly 

Options Series at the same time as 

CBOE, which the Exchange believes is 

consistent with the protection of 

investors and the public interest 

because it will ensure fair competition 

among the exchanges. The Exchange 

notes that its proposal is substantially 

similar in all material respects to a 

proposal submitted by CBOE to 

implement the Monthly Options Series 

program, that was recently approved by 

the Commission.28 The Commission 

believes that the proposed rule change 

presents no novel issues and 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 operative delay and 

designates the proposed rule change 

operative upon filing.29

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–2023–29 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–2023–29. 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–2023–29 and should be 

submitted on or before December 18, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–26005 Filed 11–24–23; 8:45 am] 

BILLING CODE 8011–01–P 


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