Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Notices 4639 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 99045 

(Nov. 30, 2023), 88 FR 84840. Comments on the 

proposed rule change are available at: https://

www.sec.gov/comments/sr-cboebzx-2023-095/ 

srcboebzx2023095.htm. 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

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). 

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 March 25, 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. 

Dated: January 19, 2024. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–01350 Filed 1–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99390; File No. SR– 

CboeBZX–2023–095] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To List and Trade Shares 

of the Fidelity Ethereum Fund Under 

BZX Rule 14.11(e)(4), CommodityBased Trust Shares 

January 18, 2024. 

On November 17, 2023, Cboe BZX 

Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares of the 

Fidelity Ethereum Fund under BZX 

Rule 14.11(e)(4), Commodity-Based 

Trust Shares. The proposed rule change 

was published for comment in the 

Federal Register on December 6, 2023.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is January 20, 

2024. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change 

and the issues raised therein. 

Accordingly, the Commission, pursuant 

to section 19(b)(2) of the Act,5

designates March 5, 2024, as the date by 

which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–CboeBZX–2023–095). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–01307 Filed 1–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99386; File No. SR–C2– 

2024–003] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 5.34 

January 18, 2024. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on January 3, 

2024, Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ 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 

Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2 Options’’) proposes 

to amend Rule 5.34. The text of the 

proposed rule change is provided 

below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe C2 Exchange, Inc. 

* * * * * 

Rule 5.34. Order and Quote Price 

Protection Mechanisms and Risk 

Controls 

The System’s acceptance and 

execution of orders, quotes, and bulk 

messages, as applicable, pursuant to the 

Rules, including Rules 5.31 through 

5.33, are subject to the following price 

protection mechanisms and risk 

controls, as applicable. 

(a) Simple Orders. 

(1)–(3) No change. 

(4) Drill-Through Price Protection. 

(A)–(B) No change. 

(C) The System enters a market order 

with a Time-in-Force of Day or limit 

order with a Time-in-Force of Day, GTC, 

or GTD (or unexecuted portion) not 

executed pursuant to subparagraph (A) 

in the Book with a displayed price equal 

to the drill-through price. 

(i)–(vii) No change. 

(D) This protection does not apply to 

bulk messages or ISOs. 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/ctwo/), 

at the Exchange’s Office of the 

Secretary, 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 


ddrumheller on DSK120RN23PROD with NOTICES1
4640 Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Notices 

5See Rule 5.31(a) for the definition of Opening 

Collars. 6See Rule 5.34(a)(4)(B). 

7An ‘‘Eligible Exchange’’ means a national 

securities exchange registered with the SEC in 

accordance with section 6(a) of the Securities 

Exchange Act of 1934 (the ‘‘Act’’) that: (a) is a 

Participant Exchange in OCC (as that term is 

defined in Section VII of the OCC by-laws); (b) is 

a party to the OPRA Plan (as that term is described 

in Section I of the OPRA Plan); and (c) if the 

national securities exchange chooses not to become 

a party to this Plan, is a participant in another plan 

approved by the Securities and Exchange 

Commission (the ‘‘Commission’’) providing for 

comparable Trade-Through and Locked and 

Crossed Market protection. The term ‘‘TradeThrough’’ means a transaction in an options series 

at a price that is lower than a Protected Bid or 

higher than a Protected Offer. A ‘‘Protected Bid’’ or 

‘‘Protected Offer’’ means a bid or offer in an options 

series, respectively, that (a) is disseminated 

pursuant to the OPRA Plan; and (b) is the best bid 

or best offer, respectively, displayed by an Eligible 

Exchange. A ‘‘Locked Market’’ means a quoted 

market in which a Protected Bid is equal to a 

Protected Offer in a series of an options class, and 

a ‘‘Crossed Market’’ means a quoted market in 

which a Protected bid is higher than a Protected 

Offer in a series of an options class. See Cboe 

Options, Inc. (‘‘Cboe Options’’) Rule 5.65(e), (g), (i), 

(o), and (q) (incorporated by reference into the 

Exchange’s Rules, as set forth in Chapter 5, Section 

E of the Rulebook). 

8See Rule 5.6(c) (definition of ISO) and Cboe 

Options Rule 5.65(h) (incorporated by reference 

into the Exchange’s Rules, as set forth in Chapter 

5, Section E of the Rulebook). 

9See proposed Rule 5.34(a)(4)(D). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 Id. 

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 

Rule 5.34. Specifically, the Exchange 

proposes to exclude Intermarket Sweep 

Orders (‘‘ISOs’’) from its drill-through 

protection. Pursuant to Rule 

5.34(a)(4)(A), if a buy (sell) order enters 

the book at the conclusion of the 

opening auction process or would 

execute or post to the book when it 

enters the book, the Exchange’s system 

executes the order up to an Exchangedetermined buffer amount (determined 

on a class and premium basis) above 

(below) the offer (bid) limit of the 

Opening Collar 5 or the National Best 

Offer (‘‘NBO’’) (National Best Bid 

(‘‘NBB’’)) that existed at the time of 

order entry, respectively (the ‘‘drillthrough price’’). The System cancels or 

rejects any market order with a time-inforce of immediate-or-cancel (‘‘IOC’’) (or 

unexecuted portion or limit order with 

time-in-force of IOC or fill-or-kill 

(‘‘FOK’’) (or unexecuted portion not 

executed pursuant to the previous 

sentence.6 Rule 5.34(a)(4)(C) establishes 

an iterative drill-through process, 

whereby the Exchange permits orders to 

rest in the book for multiple time 

periods and at more aggressive 

displayed prices during each time 

period. Specifically, the Exchange 

system enters a market order with a 

time-in-force of day or limit order with 

a time-in-force of day, good-til-cancelled 

(‘‘GTC’’), or good-til-gate (‘‘GTD’’) (or 

unexecuted portion) in the book with a 

displayed price equal to the drillthrough price. The order (or unexecuted 

portion) will rest in the book at the drillthrough price for the duration of 

consecutive time periods (the Exchange 

determines on a class-by-class basis the 

length of the time period in 

milliseconds, which may not exceed 

three seconds), which are referred to as 

‘‘iterations.’’ Following the end of each 

period, the Exchange system adds (if a 

buy order) or subtracts (if a sell order) 

one buffer amount (the Exchange 

determines the buffer amount on a classby-class basis) to the drill-through price 

displayed during the immediately 

preceding period (each new price 

becomes the ‘‘drill-through price’’). The 

order (or unexecuted portion) rests in 

the book at that new drill-through price 

for the duration of the subsequent 

period. The Exchange system applies a 

timestamp to the order (or unexecuted 

portion) based on the time it enters or 

is re-priced in the book for priority 

reasons. The order continues through 

this iterative process until the earliest of 

the following to occur: (a) the order 

fully executes; (b) the user cancels the 

order; and (c) the buy (sell) order’s limit 

price equals or is less (greater) than the 

drill-through price at any time during 

application of the drill-through 

mechanism, in which case the order 

rests in the book at its limit price. 

Currently, the drill-through protection 

applies to ISOs. An ISO is a limit order 

for an options series that meets the 

following requirements: (1) when routed 

to an Eligible Exchange,7 the order is 

identified as an ISO; and (2) 

simultaneously with the routing of the 

order, one or more additional ISOs, as 

necessary, are routed to execute against 

the full displayed size of any Protected 

Bid, in the case of a limit order to sell, 

or any Protected Offer, in the case of a 

limit order to buy, for the options series 

with a price that is superior to the limit 

price of the ISO, with such additional 

orders also marked as ISOs.8

The Exchange proposes to exclude 

ISOs from the drill-through protection.9

The primary purpose of the drillthrough price protection is to prevent 

orders from executing at prices ‘‘too far 

away’’ from the market when they enter 

the book for potential execution. This is 

inconsistent with the primary purpose 

of ISOs, which is to permit orders to 

trade at prices outside of the market. 

The Exchange believes excluding ISOs 

from the drill-through is consistent with 

the purpose of each type of 

functionality. 

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.10 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the section 

6(b)(5) 11 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) 12 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 proposed rule change will promote 

just and equitable principles of trade, 

remove impediments to and perfect the 

mechanism of a national market system, 

and protect investors and the public 

interest, because it will increase 

instances in which ISOs receive 

executions up to their limit prices, 

including outside of the market prices 

when the ISOs were submitted to the 

Exchange, which the Exchange believes 

is consistent with the expectations of 

users that submit those orders. As noted 

above, the primary purpose of ISOs is to 

permit orders to trade at prices outside 

of the market. The primary purpose of 

the drill-through price protection is to 

prevent orders from executing at prices 

‘‘too far away’’ from the market when 

they enter the book for potential 

execution. The Exchange believes 

excluding ISOs from the drill-through is 

consistent with the purpose of each type 

of functionality. Therefore, the 

Exchange believes the proposed rule 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Notices 4641 

13The Exchange notes ISOs will continue to 

receive price protection, such as from the limit 

order fat finger check. See Rule 5.34(c)(1). 

14See SR–CboeEDGX–2023–082 (December 21, 

2023). 

15See Miami International Securities Exchange, 

LLC (‘‘MIAX’’) Rule 515(c)(1) (ISOs excluded from 

MIAX’s price protection on non-market maker 

orders in non-proprietary products, which prevents 

orders from executing more than a specified 

number of increments away from the national best 

bid or offer (‘‘NBBO’’) at the time the order is 

received). 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). 

18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 19 17 CFR 200.30–3(a)(12). 

change will enhance the Exchange 

system by aligning its drill-through 

protection with the intended purpose of 

ISOs.13 The Exchange believes the 

proposed rule change may ultimately 

result in additional executions 

consistent with the expectations of users 

that submit ISOs, which ultimately 

benefits investors. The Exchange further 

believes the proposed rule change is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers, as it will 

apply to ISOs of all users. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed rule change 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 ISOs of all Trading Permit 

Holders. The Exchange does not believe 

that the 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 relates 

solely to the application of one of the 

Exchange’s price protection 

mechanisms to ISOs. Additionally, the 

proposed rule change substantively 

identical to a recent rule change by Cboe 

EDGX Exchange, Inc. (‘‘EDGX 

Options’’).14 The Exchange also notes at 

least one other options exchange 

excludes ISOs from certain of its price 

protection measures.15

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 

Because the foregoing proposed rule 

change does not: 

A. significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. 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) of the 

Act 16 and Rule 19b–4(f)(6) 17

thereunder.18 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

C2–2024–003 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–C2–2024–003. 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 (http://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–C2–2024–003 and should be 

submitted on or before February 14, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–01305 Filed 1–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–821, OMB Control No. 

3235–0776] 

Proposed Collection; Comment 

Request; Extension: Rule 18f–4 

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 (the 

‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit the existing collection 

of information to the Office of 


ddrumheller on DSK120RN23PROD with NOTICES1