Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 86425 

35 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98915 

(November 13, 2023), 88 FR 80356 (November 17, 

2023) (SR–Cboe–2023–049) (‘‘Cboe Approval 

Order’’). 

4 Id. 

5The Exchange also proposes to fix an incorrect 

cross cite to the definition of broad-based index in 

Options 4A, Section 3(b)(1). 

6As provided in the proposed Options 4A, 

Section 12(i)(1)(A), the Exchange may list Monthly 

Options Series for up to five currently listed option 

classes that are index options or options on ETFs; 

the five Monthly Options Series include both index 

options and ETF options in the aggregate. 7See Cboe Approval Order. 8The Exchange notes this provision considers 

consecutive monthly listings. In other words, as 

other expirations (such as Quarterly Options 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 

Options 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 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 Options 4A, Section 12(i)(1)(B). 

10See proposed Options 4A, Section 12(i)(1)(C). 

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–CboeBZX–2023–100 and should be 

submitted on or before January 3, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27271 Filed 12–12–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99102; File No. SR– 

NASDAQ–2023–051] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Options 4A To Adopt Monthly Options 

Series 

December 7, 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 

29, 2023, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘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 Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Rules at Options 4A (Options Index 

Rules) to adopt Monthly Options Series. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Options 4A (Options Index Rules), 

identical to the rules recently approved 

for Cboe Exchange, Inc. (‘‘Cboe’’),3 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’’). Cboe’s recently approved rule 

change 4 introduces Monthly Options 

Series for indexes and exchange-traded 

funds (‘‘ETFs’’). This rule change 

proposes to adopt Monthly Options 

Series for indexes in Options 4A. 

Nasdaq ISE, LLC (‘‘ISE’’) will separately 

file a rule change to proposes to adopt 

Monthly Options Series for ETFs in ISE 

Options 4. The Exchange’s Options 4 

rules, which govern the ability to 

transact options on ETFs, incorporate 

ISE Options 4 by reference. 

The Exchange proposes to define 

‘‘Monthly Options Series’’ in Options 

4A, Section 2(l) to mean a series in an 

options class that is approved for listing 

and trading on the Exchange in which 

the series is opened for trading on any 

business day and that expires at the 

close of business on the last business 

day of a calendar month. The Exchange 

proposes to re-letter the subsequent 

definitions in Options 4A, Section 2.5

Pursuant to proposed Options 4A, 

Section 12(i)(1)(A), the Exchange may 

list Monthly Options Series for up to 

five currently listed option classes that 

are index options or options on 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 


khammond on DSKJM1Z7X2PROD with NOTICES
86426 Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 

11See proposed Options 4A, Section 12(i)(1)(D). 

The Exchange notes this proposed provision is 

consistent with the initial series provision for the 

Quarterly Options Series program in Options 4A, 

Section 12(g). 12See proposed Options 4A, Section 12(i)(1)(E). 13See proposed Options 4A, Section 12(i)(1)(F) 

(permissible strike prices for index options). 14The Exchange proposes non-substantive 

changes to clarify in Options 4A, Section 12(a)(3) 

that index options have expiration months and 

weeks, and that index options contracts may expire 

at three (3)-month intervals, in consecutive months 

or in consecutive weeks (as specified by class in 

Options 4A, Section 12). This is merely a 

clarification, as Options 4A, Section 12(h) currently 

permits weekly expirations. 

15The Exchange also proposes to make nonsubstantive changes to Options 4A, Section 12(h)(1) 

and Options 4A, Section 12(h)(1)(B) to reference 

standard options series and 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. 

16The 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 

Option 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 Option 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). 

17See Options 4A, Section 12(i)(1)(G)(iii). 

18Pursuant to Options 4A, Section 10, exercise 

limits for index option contracts shall be equivalent 

to the position limits prescribed for options 

contracts with the nearest expiration date in 

Options 4A, Section 6 or Section 7. 

19This additional rule text will further clarify the 

current rule text for the existing Short Term Option 

Series and Quarterly Options Series programs in 

Options 4A, Section 12. 

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 Option Series 14 or Quarterly 

Options Series. Therefore, to avoid any 

confusion in the marketplace, the 

Exchange proposes to amend Options 

4A, Section 12(h)(1)(B) to provide the 

Exchange will not list a Short Term 

Option Series in a class on a date on 

which a Monthly Options Series or 

Quarterly Options Series expires.15

Similarly, proposed Options 4A, Section 

12(i)(1)(B) provide that no Monthly 

Options Series may expire on a date that 

coincides with an expiration date of a 

Quarterly Options Series in the same 

index or ETF class. In other words, the 

Exchange will not list a Short Term 

Option Series on an index if a Monthly 

Options Series on that index were to 

expire on the same date, nor will the 

Exchange list a Monthly Options Series 

on an index if a Quarterly Options 

Series on that index were to expire on 

the same date to prevent the listing of 

series with concurrent expirations.16

With respect to Monthly Options 

Series added pursuant to proposed 

Options 4A, Section 12(i)(1)(A) through 

(F), 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 pursuant to Options 4A, Section 

12(i)(1)(G)(i). 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.17

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 notes that Options 4A, 

Section 6 (Position Limits for BroadBased Index Options) and Options 4A, 

Section 7 (Position Limits for Industry 

and Micro-Narrow Based Index Options) 

will apply to Monthly Options Series. In 

Options 4A, Section 6(c) and Options 

4A, Section 7(c), Monthly Options 

Series will be aggregated with positions 

in options contracts on the same 

underlying security or index.18 This is 

consistent with how position (and 

exercise) limits are currently imposed 

on series with other expirations (Short 

Term Option Series and Quarterly 

Options Series). To that end, the 

Exchange proposes to make this clear by 

adding a sentence to Options 4A, 

Sections 6(c) and 7(c) that provides: 

‘‘Positions in Short Term Options 

Series, Monthly Options Series and 

Quarterly Options Series shall be 

aggregated with positions in options 

contracts of the same index.’’ 19

Therefore, positions in options within 

class of index, 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 index and ETF 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 86427 

20 15 U.S.C. 78f(b). 

21 15 U.S.C. 78f(b)(5). 

22 Id. 

23Compare proposed Options 4A, Section 12(i) to 

Options 4A, Section 12(g). 

24See Cboe Approval Order; see also Options 4A, 

Section 6 regarding position limits for broad-based 

index options and Options 4A, Section 7, Position 

Limits for Industry and Micro-Narrow Based Index 

Options. Pursuant to Options 4A, Section 10, 

exercise limits for index option contracts shall be 

equivalent to the position limits prescribed for 

options contracts with the nearest expiration date 

in Options 4A, Section 6 or Section 7. 

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) 

and reporting requirements—would 

continue to apply. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.20 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 21 requirements that the rules of 

an exchange be 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 regulating, clearing, settling, 

processing information with respect to, 

and 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 22 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

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 

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 

Options Series Program has expanded 

the landscape of hedging for quarter-end 

news. Monthly Options Series will also 

complement Short Term Option 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 that 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.23

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 Option 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 the 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 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 Option Series, 

and Quarterly Options Series).24

Therefore, options positions within 

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 index 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 


khammond on DSKJM1Z7X2PROD with NOTICES
86428 Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 

25See supra note 23. 

26See supra note 11. 27See Cboe Approval Order. 

28 15 U.S.C. 78s(b)(3)(A)(iii). 

29 17 CFR 240.19b–4(f)(6). 

30 15 U.S.C. 78s(b)(3)(A)(iii). 

31 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. 

32 17 CFR 240.19b–4(f)(6). 

33 17 CFR 240.19b–4(f)(6)(iii). 

34See Cboe Approval Order, supra note 3. 

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) 

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. 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.25 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 

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.26

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.27 As discussed 

above, the proposed rule change would 

permit listing of Monthly Options Series 

in five index and 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 

Option 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 

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 regarding 

aggregation of positions 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, 

because 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 Option Series 

and Quarterly Options Series). 

Therefore, positions in options in a class 

of 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 

rule 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 

No written comments were either 

solicited or received. 

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 28 and Rule 

19b–4(f)(6) thereunder.29 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 30 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.31

A proposed rule change filed 

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

Act 32 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 33

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 list Monthly Options 

Series immediately, which the Exchange 

believes will benefit investors by 

promoting competition in Monthly 

Options Series. The Exchange notes that 

its proposal is substantively identical to 

the proposal submitted by Cboe for its 

Monthly Options Series program.34 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 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 86429 

35For 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). 

36 17 CFR 200.30–3(a)(12), (59). 

1Although the rules under Section 8(b) of the 

Investment Company Act are generally procedural 

in nature, two of the rules require respondents to 

disclose some limited information. Rule 8b–3 (17 

CFR 270.8b–3) provides that whenever a 

registration form requires the title of securities to 

be stated, the registrant must indicate the type and 

general character of the securities to be issued. Rule 

8b–22 (17 CFR 270.8b–22) provides that if the 

existence of control is open to reasonable doubt, the 

registrant may disclaim the existence of control, but 

it must state the material facts pertinent to the 

possible existence of control. The information 

required by both of these rules is necessary to 

ensure that investors have clear and complete 

information upon which to base an investment 

decision. 

designates the proposed rule change 

operative upon filing.35

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– 

NASDAQ–2023–051 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–NASDAQ–2023–051. 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–NASDAQ–2023–051 and should be 

submitted on or before January 3, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27259 Filed 12–12–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–135, OMB Control No. 

3235–0176] 

Proposed Collection; Comment 

Request; Extension: Rule 8b–1 to 8b– 

5; 8b–10 to 8b–22; and 8b–25 to 8b–31 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget (‘‘OMB’’) for 

extension and approval. 

Rules 8b–1 to 8b–5; 8b–10 to 8b–22; 

and 8b–25 to 8b–31 (‘‘rules under 

Section 8(b)’’) (17 CFR 270.8b–1 to 8b– 

33) under the Investment Company Act 

of 1940 (15 U.S.C. 80a–1 et seq.) 

(‘‘Investment Company Act’’) set forth 

the procedures for preparing and filing 

a registration statement under the 

Investment Company Act. These 

procedures are intended to facilitate the 

registration process. These rules 

generally do not require respondents to 

report information.1

The Commission believes that it is 

appropriate to estimate the total 

respondent burden associated with 

preparing each registration statement 

form rather than attempt to isolate the 

impact of the procedural instructions 

under Section 8(b) of the Investment 

Company Act, which impose burdens 

only in the context of the preparation of 

the various registration statement forms. 

Accordingly, the Commission is not 

submitting a separate burden estimate 

for the rules under Section 8(b), but 

instead will include the burden for 

these rules in its estimates of burden for 

each of the registration forms under the 

Investment Company Act. The 

Commission is, however, submitting an 

hourly burden estimate of one hour for 

administrative purposes. 

The collection of information under 

the rules under Section 8(b) is 

mandatory. The information provided 

under the rules under Section 8(b) is not 

kept confidential. An agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a 

currently valid OMB control number. 

Written comments are invited on: (a) 

whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden of the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

by February 12, 2024. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: David Bottom, Chief Information 

Officer, Securities and Exchange 

Commission, c/o John Pezzullo, 100 F 

Street NE, Washington, DC 20549 or 

send an email to: PRA_Mailbox@

sec.gov. 


khammond on DSKJM1Z7X2PROD with NOTICES