Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 15239 

22See ISE Supplementary Material .03(b) at 

Options 4, Section 5. 

23See ISE Supplementary Material .03 at Options 

4, Section 5 

24See ISE Supplementary Material .03 at Options 

4, Section 5. 

25 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

Fridays.22 Further, today, Tuesday and 

Thursday Short Term Option Daily 

Expirations do not expire on a business 

day in which monthly options series or 

Quarterly Options Series expire.23

Today, all Short Term Option Daily 

Expirations expire at the close of 

business on each of the next two 

Mondays, Tuesdays, Wednesdays, and 

Thursdays, respectively, that are 

business days and are not business days 

in which monthly options series or 

Quarterly Options Series expire. There 

are no material differences in the 

treatment of Tuesday and Thursday SPY 

and QQQ Short Term Daily Expirations 

as compared to the proposed Tuesday 

and Thursday IWM Short Term Daily 

Expirations. 

Finally, the Exchange represents that 

it has an adequate surveillance program 

in place to detect manipulative trading 

in the proposed Tuesday and Thursday 

IWM Short Term Daily Expirations, in 

the same way that it monitors trading in 

the current Short Term Option Series 

and trading in Tuesday and Thursday 

SPY and QQQ Expirations. The 

Exchange also represents that it has the 

necessary systems capacity to support 

the new options series. Finally, the 

Exchange does not believe that any 

market disruptions will be encountered 

with the introduction of Tuesday and 

Thursday IWM Short Term Daily 

Expirations. 

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. 

Similar to SPY and QQQ Tuesday and 

Thursday Expirations, the introduction 

of IWM Tuesday and Thursday Short 

Term Daily Expirations does not impose 

an undue burden on competition. The 

Exchange believes that it will, among 

other things, expand hedging tools 

available to market participants and 

continue the reduction of the premium 

cost of buying protection. The Exchange 

believes that IWM Tuesday and 

Thursday Short Term Daily Expirations 

will allow market participants to 

purchase IWM options based on their 

timing as needed and allow them to 

tailor their investment and hedging 

needs more effectively. The Exchange 

notes that Cboe began listing Tuesday 

and Thursday expirations in RUTW and 

MRUT on January 8, 2024. 

The Exchange does not believe the 

proposal will impose any burden on 

inter-market competition, as nothing 

prevents other options exchanges from 

proposing similar rules to list and trade 

Short-Term Option Series with Tuesday 

and Thursday Short Term Daily 

Expirations. The Exchange notes that 

having Tuesday and Thursday IWM 

expirations is not a novel proposal, as 

SPY and QQQ Tuesday and Thursday 

Expirations are currently listed on ISE.24

Further, the Exchange does not 

believe the proposal will impose any 

burden on intra-market competition, as 

all market participants will be treated in 

the same manner under this proposal. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) by order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be 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– 

ISE–2024–06 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–ISE–2024–06. 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–ISE–2024–06 and should be 

submitted on or before March 22, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04298 Filed 2–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99606; File No. SR– 

NYSEARCA–2024–16] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend NYSE Arca 

Rule 1.1 

February 26, 2024. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on February 

14, 2024, NYSE Arca, Inc. (‘‘NYSE 


ddrumheller on DSK120RN23PROD with NOTICES1
15240 Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 

4See NYSE American Rules 900.2NY 

(Definitions) (defining a ‘‘Floor Market Maker’’ as 

‘‘a registered Market Maker who makes transactions 

as a dealer-specialist while on the Floor of the 

Exchange’’). 

5Compare proposed Rule 6.32–O (providing, in 

relevant part, that ‘‘[a] Market Maker on the 

Exchange will be a Market Maker, Floor Market 

Maker, or a Lead Market Maker’’ and that ‘‘[u]nless 

specified, or unless the context requires otherwise, 

the term Market Maker refers to Market Makers, 

Floor Market Makers, and Lead Market Makers’’) 

(emphasis added) with NYSE American Rule 920NY 

(providing, in relevant part, that ‘‘[a] Market Maker 

on the Exchange will be either a Remote Market 

Maker, a Floor Market Maker, a Specialist or an eSpecialist’’ and that ‘‘[u]nless specified, or unless 

the context requires otherwise, the term Market 

Maker refers to Remote Market Makers, Floor 

Market Makers, Specialists and e-Specialists’’). 

6Floor Market Makers likewise must comply with 

the other requirements specific to Market Makers, 

including Rules 6.34–O (Trading by OTP Holders 

and OTP Firms on the Floor), 6.34A–O (Market 

Maker Authorized Traders—OX), 6.35–O 

(Appointment of Market Makers), 6.36–O (Letters of 

Guarantee), 6.37B–O (Market Maker Orders), and 

6.39–O (Securities Accounts and Orders of Market 

Makers). 

7See Rule 6.35–O(i) (Appointment of Market 

Makers), Trading Requirements). 

8See Commentary .01 to Rule 6.35–O (providing 

that trades effected on the Trading Floor to 

accommodate cross trades executed pursuant to 

Rule 6.47–O (i.e., taking the other side of a 

‘‘crossing’’ order) will ‘‘count toward the Market 

Maker’s 75% requirement, regardless of whether the 

trades are in issues within or without the Market 

Maker’s appointment’’). 

9See SR–NYSEArca–2024–12 (providing for 

discounted rates on monthly OTP fees to Floor 

Market Makers that satisfy certain criteria). The 

Exchange notes that the description of Floor Market 

Makers set forth SR–NYSEArca–2024–12 is 

identical to the description proposed herein and the 

proposed minimum 75% Manual trading 

requirement aligns with Commentary .01 to Rule 

6.35–O, as described herein. See NYSE American 

Fee Schedule, Section III.A. (Monthly ATP Fees) 

and Section III.A., n. 1 (describing discounted rates 

available to Floor Market Makers that meet specific 

criteria, which rates/criteria are identical to those 

proposed herein). 

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

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

Arca’’ 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 self-regulatory organization. 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 

Rule 1.1 (Definitions) to adopt a 

category of Market Makers called Floor 

Market Makers and to make other 

conforming changes. The proposed rule 

change is available on the Exchange’s 

website at www.nyse.com, 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 

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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to amend 

Exchange Rule 1.1 (Definitions) to adopt 

a category of Market Makers called Floor 

Market Makers and to make other 

conforming changes. The Exchange 

notes that the proposed category of 

Floor Market Makers is substantively 

identical to the category of Floor Market 

Makers on at least one other options 

exchange, including on the Exchange’s 

affiliated SRO, NYSE American LLC 

(‘‘NYSE American’’).4

The Exchange proposes to adopt a 

category of Market Maker called a Floor 

Market Maker, which would be 

substantively identical to the category of 

Floor Market Maker on NYSE American. 

In this regard, the Exchange proposes to 

add a definition of Floor Market Maker 

that would provide that a Floor Market 

Maker is ‘‘a registered Market Maker 

who makes transactions as a dealerspecialist while on the Floor of the 

Exchange.’’ Consistent with this 

proposal, the Exchange also proposes to 

amend Rules 6.32–O (Market Maker 

Defined) to make clear that Floor Market 

Makers are included in the definition of 

Market Maker, unless otherwise 

specified or unless context requires 

otherwise.5 As such, Floor Market 

Makers are required to satisfy the 

myriad of obligations imposed on 

Market Makers including registration 

requirements per Rule 6.33–O 

(Registration of Market Makers), 

minimum trading requirements for 

option issues in appointment per Rule 

6.35–O (Appointment of Market 

Makers), minimum continuous quoting 

requirements per Rules 6.37–O 

(Obligations of Market Maker) and 

6.37AP–O (Market Maker Quotations), 

among others.6 In particular, at least 

75% of the trading activity of each 

Market Maker, including Floor Market 

Makers, must be in option issues in its 

appointed issues (the ‘‘minimum 75% 

trading requirement’’).7 However, 

relevant to the proposed category of 

Floor Market Maker, trades executed on 

the Trading Floor are counted toward 

the minimum 75% trading requirement, 

regardless of whether the trades are in 

option issues in the Market Maker’s 

appointment.8

The primary role of Market Makers is 

to provide liquidity. The Exchange does 

not limit the number of participants 

who may act as Market Makers and 

would likewise not limit the number of 

Market Makers acting as Floor Market 

Makers. The proposed category of Floor 

Market Makers would have a specific 

focus on providing liquidity for orders 

submitted for execution on the Floor of 

the Exchange through open outcry. The 

Exchange believes that the nature of 

open outcry transactions lends itself 

better to larger-sized transactions than 

the liquidity that is typically available 

electronically and the proposed 

installation of Floor Market Makers 

would encourage greater participation 

in, and increased liquidity for, such 

large trades. The Exchange therefore 

believes that all market participants 

stand to benefit from any increased 

opportunities for order execution 

resulting from the infusion of liquidity 

on the Trading Floor. 

The Exchange has submitted a 

separate fee filing that will make Market 

Makers acting as Floor Market Makers 

eligible for beneficial fee treatment, 

provided the Floor Market Maker 

satisfies certain criteria, as is the case on 

NYSE American.9

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934,10 in 

general, and furthers the objectives of 

Section 6(b)(5),11 in particular, because 

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. 

The Exchange believes the proposal to 

adopt a new category of Market Makers 

called Floor Market Maker and to 

subject Floor Market Makers to the same 

requirements as non-Floor Market 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 15241 

12See NYSE American Rule 900.2NY 

(Definitions) (defining a ‘‘Floor Market Maker’’ as 

‘‘a registered Market Maker who makes transactions 

as a dealer-specialist while on the Floor of the 

Exchange’’). See also BOX Options LLC (‘‘BOX’’) 

Rule 8510 (defining a ‘‘Floor Market Maker’’ as ‘‘an 

Options Participant of the Exchange located on the 

Trading Floor who has received permission from 

the Exchange to trade in options for his own 

account’’). 

13 15 U.S.C. 78s(b)(3)(A)(iii). 

14 17 CFR 240.19b–4(f)(6). 

15 Id. 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. 

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6)(iii). 

18For 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). 

Makers will remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, protect 

investors and the public interest, by 

creating a subset of Market Makers that 

will have a presence on the Trading 

Floor with a focus on providing 

liquidity for the execution of open 

outcry orders The Exchange notes that 

Floor Market Makers would have an 

incentive to execute orders in all 

options issues in open outcry because 

all such trades would count towards the 

75% minimum trading requirement (per 

Commentary .01 to Rule 6.35–O). As 

noted herein, the Exchange would not 

limit the number of Market Makers 

acting as Floor Market Makers. The 

Exchange believes that the nature of 

open outcry transactions lends itself 

better to larger-sized transactions than 

the liquidity that is generally available 

electronically and the proposed 

installation of Floor Market Makers 

would encourage greater participation 

in such large trades. Therefore, the 

proposal will benefit all market 

participants trading on the Exchange, 

especially those seeking liquidity for 

large-sized and complex orders. 

Moreover, the Exchange believes that 

the proposal would benefit investors, 

the national market system, and the 

Exchange by increasing competition for 

order flow and executions, which would 

improve price discovery. 

The Exchange notes that, as proposed, 

Floor Market Makers would be subject 

to the same requirements and 

obligations as non-Floor Market Makers. 

That said, Floor Market Makers, by 

virtue of their presence on the Trading 

Floor, would be better positioned to 

execute trading interest in open outcry, 

which would increase liquidity on the 

Trading Floor to the benefit of all 

market participants. Because the 

proposed category of Floor Market 

Makers are subject to the same 

obligations as non-Floor Market Makers, 

the Exchange notes that it would not 

need to undertake any additional 

procedures or create additional 

surveillances to regulate its Floor 

Market Makers together with non-Floor 

Market Makers. 

As noted herein, the proposal to have 

Floor Market Makers is not new or novel 

as Floor Market Makers exist pursuant 

to the rules of Exchange’s affiliated 

options SRO, NYSE American.12 As 

such, this proposal does not raise any 

issues not previously considered by the 

Exchange. 

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. Instead, the 

Exchange believes that the proposed 

change would continue to encourage 

competition because it would apply to 

all similarly-situated Market Makers. 

The Exchange believes the proposed 

change would not unduly burden 

market participants trading on the 

Exchange but would instead allow (and 

encourage) market making firms that do 

not already have a presence on the 

Trading Floor to install a Floor Market 

Maker. The Exchange believes that all 

market participants stand to benefit 

from this proposal because Floor Market 

Makers focused on open outcry 

transactions would encourage increased 

liquidity and quote competition on the 

Exchange. The Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues. In such 

an environment, the Exchange must 

continually review, and consider 

adjusting, its rules to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to 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 13 and Rule 

19b–4(f)(6) thereunder.14 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder.15

A proposed rule change filed under 

Rule 19b–4(f)(6) 16 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),17 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The Exchange 

states that waiver of the operative would 

be consistent with the protection of 

investors and the public interest 

because it would enable the Exchange to 

allow a subset of Market Makers to have 

a presence on the Trading Floor with a 

specific focus on providing liquidity for 

the execution of open outcry orders 

without delay. The Exchange further 

states that it believes the presence of 

Floor Market Makers may result in 

increased liquidity for open outcry 

interest, which would benefit investors 

and the public interest and should 

therefore be implemented without 

delay. Finally, the Exchange notes that 

its affiliate Exchange (NYSE American) 

has a substantially identical rule and 

therefore the proposed rule change does 

not raise any new novel regulatory 

issues. For the foregoing reasons, the 

Commission does not believe that the 

proposal raises any new or novel 

regulatory issues, and may provide 

market participants with an additional 

opportunities to interact with liquidity 

on the Trading Floor. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.18

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 


ddrumheller on DSK120RN23PROD with NOTICES1
15242 Federal Register / Vol. 89, No. 42 / Friday, March 1, 2024 / Notices 

19 15 U.S.C. 78s(b)(2)(B). 

20 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3FIX is an interface that allows Participants and 

their Sponsored Customers to connect, send, and 

receive messages related to orders and auction 

orders and responses to and from the Exchange. 

Features include the following: (1) execution 

messages; (2) order messages; and (3) risk protection 

triggers and cancel notifications. In addition, a BX 

Participant may elect to utilize FIX to send a 

message and PRISM Order, as defined within 

Options 3, Section 13, to all BX Participants that 

opt in to receive Requests for PRISM requesting that 

it submit the sender’s PRISM Order with 

responder’s Initiating Order, as defined within 

Options 3, Section 13, into the Price Improvement 

Auction (‘‘PRISM’’) mechanism, pursuant to 

Options 3, Section 13 (‘‘Request for PRISM’’). See 

Options 3, Section 7(e)(1)(A). 

4 General 2, Section 22 describes Sponsored 

Access arrangements. 

5The term ‘‘System’’ or ‘‘Trading System’’ means 

the automated system for order execution and trade 

reporting owned and operated by BX as the BX 

Options market. The BX Options market comprises: 

(A) an order execution service that enables 

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 

under Section 19(b)(2)(B) 19 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEARCA–2024–16 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–NYSEARCA–2024–16. 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–NYSEARCA–2024–16 and should be 

submitted on or before March 22, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04299 Filed 2–29–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99598; File No. SR–BX– 

2024–006] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Adopt an OTTO 

Protocol 

February 26, 2024 

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 February 

15, 2024, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, 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 adopt a 

new protocol, ‘‘Ouch to Trade Options’’ 

or ‘‘OTTO’’ and establish pricing for this 

new protocol. 

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 

BX proposes to offer a new order 

entry protocol called OTTO. Today, BX 

Participants may enter orders into the 

Exchange through the ‘‘Financial 

Information eXchange’’ or ‘‘FIX.’’ 3 The 

proposed new OTTO protocol is 

identical to the OTTO protocol offered 

today on 3 Nasdaq affiliated exchanges, 

Nasdaq ISE, LLC (‘‘ISE’’), Nasdaq 

GEMX, LLC (‘‘GEMX’’) and Nasdaq 

MRX, LLC (‘‘MRX’’). 

The OTTO protocol is a proprietary 

protocol of Nasdaq, Inc. The Exchange 

continues to innovate and modernize 

technology so that it may continue to 

compete among options markets. The 

ability to continue to innovate with 

technology and offer new products to 

market participants allows BX to remain 

competitive in the options space which 

currently has seventeen options markets 

and potential new entrants. 

OTTO Protocol 

As proposed, OTTO would allow 

Participants and their Sponsored 

Customers 4 to connect, send, and 

receive messages related to orders, 

auction orders, and auction responses to 

the Exchange. OTTO features would 

include the following: (1) options 

symbol directory messages (e.g., 

underlying and complex instruments); 

(2) System 5 event messages (e.g., start of 


ddrumheller on DSK120RN23PROD with NOTICES1