Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices 14911 

9 15 U.S.C. 78f(b)(8). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(2). 

12 15 U.S.C. 78s(b)(2)(B). 

13 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. 

4The Exchange filed Amendment No. 1 on 

February 15, 2024 to add specificity regarding how 

the options on Bitcoin ETPs are settled. On 

February 15, 2024, the Exchange withdrew 

Amendment No. 1 and filed Amendment No. 2 to 

correct a pagination error. 

the fees charged for services currently 

offered by the Exchange. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,9 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Instead, as 

discussed above, the proposal relates 

solely to elimination of an obsolete 

crossing session fees and, as such, 

would not have any impact on intra- or 

inter-market competition because the 

proposed change is solely designed to 

accurately reflect the services that the 

Exchange currently offers, thereby 

adding clarity to the Price List. 

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 foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 10 of the Act and 

subparagraph (f)(2) of Rule 19b–4 11

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

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 

under Section 19(b)(2)(B) 12 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– 

NYSE–2024–07 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–NYSE–2024–07. 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–NYSE–2024–07 and should be 

submitted on or before March 21, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04168 Filed 2–28–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99593; File No. SR– 

NYSEAMER–2024–10] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing of 

Proposed Change, as Modified by 

Amendment No. 2 To Amend Rule 915 

To Permit the Listing and Trading of 

Options on the Bitwise Bitcoin ETF, 

the Grayscale Bitcoin Trust, and Any 

Trust That Holds Bitcoin 

February 23, 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 

9, 2024, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change, which filing was 

partially amended by Amendment No. 2 

thereto on February 15, 2024, as 

described in Items I, II, and III below, 

which Items have been prepared by the 

self-regulatory organization.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as modified by Amendment No. 

2, 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 915 to permit the listing and 

trading of options on the Bitwise Bitcoin 

ETF, the Grayscale Bitcoin Trust (BTC), 

and any trust that holds bitcoin. 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. 


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14912 Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices 

5See proposed Commentary .10 to Rule 915. The 

Commission recently approved rule changes to list 

and trade shares of ‘‘Bitcoin-Based CommodityBased Trust Shares’’ pursuant to Rule 8.201–E(c)(1) 

(Commodity-Based Trust Shares), including the 

Bitwise Bitcoin ETF, the Grayscale Bitcoin Trust 

(BTC). See Securities Exchange Act Release No. 

99306 (January 10, 2024) (Order Granting 

Accelerated Approval of Proposed Rule Changes, as 

Modified by Amendments Thereto, to List and 

Trade Bitcoin-Based Commodity-Based Trust 

Shares and Trust Units), 89 FR 3008 (January 17, 

2024) (SR–NYSEARCA–2023–44; SR–NYSEARCA– 

2021–90). 

6See, e.g., Securities Exchange Act Release No. 

99396 (January 19, 2024), 89 FR 5047 (January 24, 

2024) (SR–ISE–2024–03) (proposal to amend, on an 

accelerated basis, Nasdaq ISE’s initial listing rule to 

allow the listing and trading of options on the 

iShares Bitcoin Trust on Nasdaq ISE); and 

Securities Exchange Act Release No. 99397 (January 

12, 2024), 89 FR 5079 (January 19, 2024) (SR– 

MIAX–2024–03) (proposal to amend, on an 

accelerated basis, MIAX’s initial listing rule to 

allow the listing and trading of options on ETFs that 

represent interests in a trust that holds bitcoin, 

designating them as ETFs deemed appropriate for 

options trading on MIAX). See also Securities 

Exchange Act Release No. 99398 (January 19, 2024), 

89 FR 5029 (January 25, 2024) (SR–NYSEARCA– 

2024–06) (proposal to amend, on an accelerated 

basis, NYSE Arca’s initial listing rule to allow the 

listing and trading of options on Commodity-Based 

Trust Shares, which generic listing standard would, 

if approved, permit options on Commodity ETFs 

backed by bitcoin). Pursuant to the Exchange’s 

Rules, the Exchange would only have authority to 

list and trade options on ETFs if the underlying 

securities are trading as NMS stocks. 

7See Commentary .06, which permits options 

trading on ETFs that are traded on a national 

securities exchange and are defined as an ‘‘NMS 

stock’’ in Rule 600(b)(55) of Regulation NMS, that 

represent interests in registered investment 

companies (or series thereof) organized as open-end 

management investment companies, unit 

investment trusts or similar entities that hold 

portfolios of securities and/or financial instruments 

including, but not limited to, stock index futures 

contracts, options on futures, options on securities 

and indexes, equity caps, collars and floors, swap 

agreements, forward contracts, repurchase 

agreements and reverse purchase agreements (the 

‘‘Financial Instruments’’), and money market 

instruments, including, but not limited to, U.S. 

government securities and repurchase agreements 

(the ‘‘Money Market Instruments’’) comprising or 

otherwise based on or representing investments in 

indexes or portfolios of securities and/or Financial 

Instruments and Money Market Instruments (or that 

hold securities in one or more other registered 

investment companies that themselves hold such 

portfolios of securities and/or Financial Instruments 

and Money Market Instruments); interests in a trust 

or similar entity that holds a specified non-U.S. 

currency deposited with the trust or similar entity 

when aggregated in some specified minimum 

number may be surrendered to the trust by the 

beneficial owner to receive the specified non-U.S. 

currency and pays the beneficial owner interest and 

other distributions on deposited non-U.S. currency, 

if any, declared and paid by the trust (‘‘Currency 

Trust Shares’’); commodity pool interests 

principally engaged, directly or indirectly, in 

holding and/or managing portfolios or baskets of 

securities, commodity futures contracts, options on 

commodity futures contracts, swaps, forward 

contracts and/or options on physical commodities 

and/or non-U.S. currency (‘‘Commodity Pool 

Units’’); or represents an interest in a registered 

investment company (‘‘Investment Company’’) 

organized as an open-end management investment 

company or similar entity, that invests in a portfolio 

of securities selected by the Investment Company’s 

investment adviser consistent with the Investment 

Company’s investment objectives and policies, 

which is issued in a specified aggregate minimum 

number in return for a deposit of a specified 

portfolio of securities and/or a cash amount with a 

value equal to the next determined net asset value 

(‘‘NAV’’), and when aggregated in the same 

specified minimum number, may be redeemed at a 

holder’s request, which holder will be paid a 

specified portfolio of securities and/or cash with a 

value equal to the next determined NAV (‘‘Managed 

Fund Share’’); provided that all of the conditions 

listed in Rules 915 and 916 are met. 

8See supra note 4 (regarding order approving rule 

changes to list and trade shares of ‘‘Bitcoin-Based 

Commodity-Based Trust Shares’’ pursuant to Rule 

8.201–E(c)(1) (Commodity-Based Trust Shares), 

including BITC and GBTC. For a complete 

description of the BITC and the GBTC, see SR– 

NYSEARCA–2023–44 and SR–NYSEARCA–2021– 

90, respectively. 

9The trust may include minimal cash. See e.g., 

Securities Exchange Act Release No. 99306 (January 

8, 2024), 89 FR 2297, 2298 (January 12, 2024) (SR– 

NYSEARCA–2023–44) (providing that, for BITC, the 

‘‘only assets will be bitcoin and cash’’). 

10Similar to other commodity ETFs in which 

options may be listed on the Exchange pursuant to 

Rule 915, Commentary .10 (e.g., SPDR Gold Trust, 

the iShares COMEX Gold Trust, the iShares Silver 

Trust, the ETFS Gold Trust, the ETFS Silver Trust, 

the ETFS Palladium Trust, or the ETFS Platinum 

Trust), both GBTC and BITC are trusts that 

essentially offer analogous objectives and benefits 

to investors. 

11As with any ETF that trades on the Exchange, 

the Exchange would not list and trade options on 

Bitcoin ETPs, including the Bitwise Bitcoin ETF 

and the Grayscale Bitcoin Trust (BTC), unless such 

instruments satisfied all applicable criteria in Rules 

915 and 916, as applicable. 

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 Exchange proposes to amend 

Rule 915 (Criteria for Underlying 

Securities), Commentary .10, to allow 

the Exchange to list and trade options 

on the Bitwise Bitcoin ETF (‘‘BITC’’), 

the Grayscale Bitcoin Trust (BTC) 

(‘‘GBTC’’), and any trust that holds only 

bitcoin and cash (collectively, ‘‘Bitcoin 

ETPs’’).5 The Exchange notes that other 

options exchanges have filed similar 

rule proposals that are currently 

pending with the Commission to allow 

the listing and trading of options on 

trusts that hold bitcoin.6

Commentary .06 to Rule 915 

(hereinafter ‘‘Commentary .06’’) 

provides that, subject to certain other 

criteria set forth in Rule 915, securities 

deemed appropriate for options trading 

include ETFs that represent certain 

types of interests,7 including interests in 

certain specific trusts that hold financial 

instruments, money market instruments, 

or precious metals (which are deemed 

commodities). 

Bitcoin ETPs, including the Bitwise 

Bitcoin ETF (‘‘BITC’’) and the Grayscale 

Bitcoin Trust (‘‘GBTC’’), are bitcoinbacked commodity ETPs structured as 

trusts.8 Similar to any ETFs currently 

deemed appropriate for options trading 

under Rule 915, the investment 

objective of a Bitcoin ETP trust is for its 

shares to reflect the performance of 

bitcoin (less the expenses of the trust’s 

operations), offering investors an 

opportunity to gain exposure to bitcoin 

without the complexities of bitcoin 

delivery. As is the case for ETFs 

currently deemed appropriate for 

options trading, a Bitcoin ETP’s shares 

represent units of fractional undivided 

beneficial interest in the trust, the assets 

of which consist principally of bitcoin 

and are designed to track bitcoin or the 

performance of the price of bitcoin and 

offer access to the bitcoin market.9

Bitcoin ETPs provide investors with 

cost efficient alternatives that allow a 

level of participation in the bitcoin 

market through the securities market. 

The primary substantive difference 

between Bitcoin ETPs and ETFs 

currently deemed appropriate for 

options trading are that ETFs may hold 

securities, certain financial instruments, 

and specified precious metals (which 

are commodities), while Bitcoin ETPs 

hold bitcoin (which is also deemed a 

commodity).10 The Exchange believes 

that offering options on Bitcoin ETPs, 

including to BITC and GBTC, will 

benefit investors by providing them 

with an additional, relatively lower cost 

investing tool to gain exposure to spot 

Bitcoin as well as a hedging vehicle to 

meet their investment needs in 

connection with Bitcoin products and 

positions. 

Bitcoin ETPs will trade in the same 

manner as options on other ETFs 

(including commodities ETFs) on the 

Exchange.11 In particular, and as 

detailed below, Exchange rules that 

apply to the listing and trading of all 

options on ETFs on the Exchange, 

including, for example, rules that 

govern listing criteria, expirations, 

exercise prices, minimum increments, 

position and exercise limits, margin 


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12See Commentary .01 to Rule 915, which sets 

forth minimum requirements for the underlying 

security which include, but are not limited to, 

7,000,000 underlying shares, 2,000 shareholders, 

and trading volume of 2,400,000 shares over the 

preceding twelve months. Additionally, the rule 

requires that the market price per share of the 

underlying security must be at least $7.50 for the 

majority of business days during the three calendar 

months preceding the date of selection of an option 

class. For underlying securities that are deemed 

Covered Securities, as defined under Section 

18(b)(1)(A) of the Securities Act of 1933, the closing 

market price of the underlying security must be at 

least $3.00 per share for the previous three 

consecutive business days prior to the date of 

selection of an option class. 

13See Commentary .07 to Rule 916. For 

avoidance of doubt and consistent with this 

proposal, the Exchange proposes to amend Rule 916 

to include in Bitcoin in ETPs in the list of ETFs 

subject to the continued listing standards. See 

proposed Commentary .11 to Rule 916 (proving that 

‘‘[f]or purposes of Commentary .07 of this Rule 916, 

shares of the SPDR® Gold Trust (symbol: GLD), 

iShares COMEX Gold Trust (symbol: IAU), the 

iShares Silver Trust (symbol: SLV), and the ETFS 

Silver Trust (symbol: SIVR), the ETFS Gold Trust 

(symbol: SGOL), the ETFS Palladium Trust (symbol: 

PALL), the ETFS Platinum Trust (symbol: PPLT), 

the Bitwise Bitcoin ETF (symbol: BITC), the 

Grayscale Bitcoin Trust (BTC) (symbol: GBTC), and 

any trust that holds bitcoin, are deemed to be 

‘‘Exchange-Traded Fund Shares’’) (emphasis 

added). 

14See Amendment No 2. 

15See Rule 902 (Rights and Obligations of 

Holders and Writers), which provides that the rights 

and obligations of holders and writers of option 

contracts of any class of options dealt in on the 

Exchange shall be as set forth in the Rules of the 

Clearing Corporation. See also OCC Rules, Chapter 

VIII, which governs exercise and assignment, and 

Chapter IX, which governs the discharge of delivery 

and payment obligations arising out of the exercise 

of physically settled stock option contracts. OCC 

Rules can be located at: https://www.theocc.com/ 

getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/ 

occrules.pdf. 

16See Rule 903(h). 

17See Rule 903, Commentary .09. 

18See Rule 903, Commentary .03. 

19See Rule 903, Commentary .10(d). 

20 Id. 

21See Rule 903, Commentary .06. 

22See Rule 903, Commentary .13. 

23See Rule 903, Commentary .07(a). 

24See Rule 903, Commentary .12. 

25Options that are eligible to participate in the 

Penny Interval Program have a minimum increment 

of $0.01 below $3.00 and $0.50 above $3.00. See 

Rule 970NY(a)(3). 

requirements, customer accounts and 

trading halt procedures, will likewise 

apply to the listing and trading of 

options on Bitcoin ETPs on the 

Exchange. 

The Exchange’s initial listing 

standards for ETFs on which options 

may be listed and traded on the 

Exchange will apply to Bitcoin ETPs. 

The Exchange expects Bitcoin ETPs to 

satisfy the initial listing standards as set 

forth in Rule 915(a) (generally) and 

Commentary .06 (which applies to ETFs 

specifically). Pursuant to Rule 915(a), a 

security (which includes ETFs) on 

which options may be listed and traded 

on the Exchange must be duly registered 

(with the Commission) and be an NMS 

stock (as defined in Rule 600 of 

Regulation NMS under the Act,) and be 

characterized by a substantial number of 

outstanding shares that are widely held 

and actively traded. In addition, 

Commentary .06 requires that ETFs 

must either (1) meet the criteria and 

standards set forth in Commentary .01 

to Rule 915,12 or (2) the ETFs are 

available for creation and redemption 

each business day as set forth in 

Commentary .06(a)(ii). 

Options on Bitcoin ETPs will also be 

subject to the Exchange’s continued 

listing standards set forth in 

Commentary .07 to Rule 916 which 

provides that options on ETFs may be 

subject to the suspension of opening 

transactions as follows: (1) the ETFs no 

longer meets the terms of Commentary 

.01 to Rule 916; (2) following the initial 

twelve-month period beginning upon 

the commencement of trading of the 

ETFs, there are fewer than 50 record 

and/or beneficial holders of the ETFs for 

30 or more consecutive trading days; (3) 

the value of the underlying commodity 

is no longer calculated or available; or 

(4) such other event occurs or condition 

exists that in the opinion of the 

Exchange makes further dealing on the 

Exchange inadvisable. Additionally, 

ETFs will be deemed to not meet the 

requirements for continued approval, 

and the Exchange will not open for 

trading any additional series of option 

contracts covering the ETF if such 

security ceases to be an ‘‘NMS stock’’ as 

provided for Commentary .01(5) to Rule 

915 or the ETF is halted from trading on 

its primary market.13

Options on Bitcoin ETPs listed 

pursuant to proposed Commentary .10 

to Rule 915 would be physically 14

settled contracts with American-style 

exercise 15 and would be included 

within the definition of securities as 

such terms are used in the Exchange’s 

rules and, as such, would be subject to 

Exchange rules and procedures that 

currently govern the trading of 

securities on the Exchange, including 

Exchange rules governing the trading of 

equity options. Furthermore, the 

Exchange’s rules pertaining to position 

and exercise limits or margin shall 

apply to options on Bitcoin ETPs. 

Specifically, consistent with Rule 903, 

which governs the opening of options 

series on a specific underlying security 

(including ETFs), the Exchange will 

open at least one expiration month for 

options on Bitcoin ETPs and may also 

list series of options on Bitcoin ETPs for 

trading on a weekly 16 or quarterly 17

basis. The Exchange may also list longterm equity option series (‘‘LEAPS’’) 18

that expire from twelve to thirty-nine 

months from the time they are listed. 

Pursuant to Rule 903, Commentary 

.05(a), which governs strike prices of 

series of options on ETFs, the interval 

between strike prices of series of options 

on ETFs approved for options trading 

(per Commentary .06) will be fixed at a 

price per share which is reasonably 

close to the price per share at which the 

underlying security is traded in the 

primary market at or about the same 

time such series of options is first open 

for trading on the Exchange, or at such 

intervals as may have been established 

on another options exchange prior to the 

initiation of trading on the Exchange. 

With respect to the Short Term Options 

Series or Weekly Program, during the 

month prior to expiration of an option 

class that is selected for the Short Term 

Option Series Program, the strike price 

intervals for the related non-Short Term 

Option (‘‘Related non-Short Term 

Option’’) shall be the same as the strike 

price intervals for the Short Term 

Option.19 Specifically, the Exchange 

may open for trading Short Term Option 

Series at strike price intervals of (i) 

$0.50 or greater where the strike price 

is less than $100, and $1 or greater 

where the strike price is between $100 

and $150 for all option classes that 

participate in the Short Term Options 

Series Program; (ii) $0.50 for option 

classes that trade in one dollar 

increments and are in the Short Term 

Option Series Program; or (iii) $2.50 or 

greater where the strike price is above 

$150.20 Additionally, the Exchange may 

list series of options pursuant to the $1 

Strike Price Interval Program,21 the 

$0.50 Strike Program,22 the $2.50 Strike 

Price Program,23 and the $5 Strike 

Program.24 Rule 960NY governs the 

minimum increment for bids and offers 

for both equity and index options. 

Pursuant to Rule 960NY, where the 

price of a series of options in Bitcoin 

ETPs is less than $3.00 the minimum 

increment will be $0.05, and where the 

price is $3.00 or higher, the minimum 

increment will be $0.10 25 consistent 

with the minimum increments for 

options on other ETFs listed on the 

Exchange. Any and all new series of 

options on Bitcoin ETPs that the 

Exchange lists will be consistent and 

comply with the expirations, strike 

prices, and minimum increments set 

forth in Rules 915, 903, and 970NY, as 

applicable. 

Position and exercise limits for 

options on ETFs, including options on 

Bitcoin ETPs, are determined pursuant 

to Rules 904 and 905, respectively. 

Position and exercise limits for ETFs 


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26 15 U.S.C. 78f(b). 

27 15 U.S.C. 78f(b)(5). 

28See Securities Exchange Act Release No. 57897 

(May 30, 2008), 73 FR 32061 (June 5, 2008) (SR– 

Amex–2008–15; SR–CBOE–2005–11; SR–ISE–2008– 

12; SR–NYSEArca–2008–52; and SR–Phlx–2008– 

17) (Order Granting Approval of a Proposed Rule 

Change, as Modified, and Notice of Filing and 

Order Granting Accelerated Approval of Proposed 

Rule Changes, as Modified, Relating to Listing and 

Trading Options on the SPDR Gold Trust). 

29See Securities Exchange Act Release No. 59055 

(December 4, 2008), 73 FR 75148 (December 10, 

2008) (SR–Amex–2008–68; SR–BSE–2008–51; SR– 

CBOE–2008–72; SR–ISE–2008–58; SR–NYSEArca– 

2008–66; and SR–Phlx–2008–58) (Notice of Filing 

and Order Granting Accelerated Approval of 

Proposed Rule Changes Relating to the Listing and 

Trading Options on Shares of the iShares COMEX 

Gold Trust and the iShares Silver Trust). 

30 Id. 

31See Securities Exchange Act Release No. 61483 

(February 3, 2010), 75 FR 6753 (February 10, 2010) 

(SR–CBOE–2010–007; SR–ISE–2009–106; SR– 

NYSEAmex–2009–86; and SR–NYSEArca–2009– 

110) (Order Granting Approval of Proposed Rule 

Changes and Notice of Filing and Order Granting 

Accelerated Approval of a Proposed Rule Change 

Relating to Listing and Trading Options on the 

ETFS Gold Trust and the ETFS Silver Trust). 

32 Id. 

options vary according to the number of 

outstanding shares and the trading 

volumes of the underlying ETF over the 

past six months, where the largest in 

capitalization and the most frequently 

traded ETFs have an option position 

and exercise limit of 250,000 contracts 

(with adjustments for splits, recapitalizations, etc.) on the same side of 

the market; and smaller capitalization 

ETFs have position and exercise limits 

of 200,000, 75,000, 50,000 or 25,000 

contracts (with adjustments for splits, 

recapitalizations, etc.) on the same side 

of the market. Further, Rule 462, which 

governs margin requirements applicable 

to the trading of all options on the 

Exchange including options on ETFs, 

will also apply to the trading of Bitcoin 

ETP options. 

* * * * * 

The Exchange notes that options on 

Bitcoin ETPs would not be available for 

trading until The Options Clearing 

Corporation (‘‘OCC’’) represents to the 

Exchange that it is fully able to clear 

and settle such options. The Exchange 

has also analyzed its capacity and 

represents that it and The Options Price 

Reporting Authority (‘‘OPRA’’) have the 

necessary systems capacity to handle 

the additional traffic associated with the 

listing of options on Bitcoin ETPs. The 

Exchange believes any additional traffic 

that would be generated from the 

trading of options on Bitcoin ETPs 

would be manageable. The Exchange 

represents that Exchange members will 

not have a capacity issue as a result of 

this proposed rule change. 

The Exchange represents that the 

same surveillance procedures applicable 

to all other options on other ETFs 

currently listed and traded on the 

Exchange will apply to options on 

Bitcoin ETPs. The Exchange’s existing 

surveillance and reporting safeguards 

are designed to deter and detect possible 

manipulative behavior which might 

arise from listing and trading options on 

ETFs, including the options on Bitcoin 

ETPs. The Exchange believes that its 

surveillance procedures are adequate to 

properly monitor the trading of options 

on Bitcoin ETPs in all trading sessions 

and to deter and detect violations of 

Exchange rules. In addition, the 

Exchange will implement any new 

surveillance procedures it deems 

necessary to effectively monitor the 

trading of options on Bitcoin ETPs. 

Also, the Exchange may obtain trading 

information via the Intermarket 

Surveillance Group (‘‘ISG’’) from other 

exchanges who are members of the ISG, 

or from other exchanges with which the 

Exchange has entered into a 

comprehensive surveillance sharing 

agreement (‘‘CSSA’’). The Exchange will 

enter into new CSSAs with other 

exchanges as necessary to effectively 

monitor the trading of options on 

Bitcoin ETPs. The Exchange represents 

that these procedures will be adequate 

to properly monitor Exchange trading of 

options on Bitcoin ETPs and to deter 

and detect violations of Exchange rules. 

Finally, quotation and last sale 

information for ETFs is available via the 

Consolidated Tape Association (‘‘CTA’’) 

high speed line. Quotation and last sale 

information for such securities is also 

available from the exchange on which 

such securities are listed. Quotation and 

last sale information for options on 

Bitcoin ETPs will be available via OPRA 

and major market data vendors. 

2. Statutory Basis 

The Exchange believes that its 

proposed rule change is consistent with 

Section 6(b) of the Act 26 in general and 

furthers the objectives of Section 6(b)(5) 

of the Act 27 in particular, in that it is 

designed to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system. 

In particular, the Exchange believes 

that the proposal to list and trade 

options on Bitcoin ETPs will remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, protect investors because 

offering options on Bitcoin ETPs will 

provide investors with a greater 

opportunity to realize the benefits of 

utilizing options on an ETF based on 

spot bitcoin, including cost efficiencies 

and increased hedging strategies. The 

Exchange believes that offering options 

on a competitively priced ETF based on 

spot bitcoin will benefit investors by 

providing them with an additional, 

relatively lower cost risk management 

tool allowing them to manage, more 

easily, their positions, and associated 

risks, in their portfolios in connection 

with exposure to spot bitcoin. Today, 

the Exchange lists options on other 

commodity ETFs structured as a trust, 

which essentially offer analogous 

objectives and benefits to investors, and 

for which the Exchange has not 

identified any issues with the continued 

listing and trading of options on those 

ETFs. 

The Exchange also believes the 

proposal to permit options on Bitcoin 

ETPs will remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, because options on Bitcoin 

ETPs will comply with current 

Exchange rules as discussed herein. 

Specifically, options on Bitcoin ETPs 

must satisfy the initial listing standards 

and continued listing standards 

currently in the Exchange rules, 

applicable to options on all ETFs, 

including options on other commodity 

ETFs already deemed appropriate for 

options trading on the Exchange 

pursuant to Rule 915, Commentary .10. 

Further, Exchange rules that currently 

govern the listing and trading of options 

on ETFs, including permissible 

expirations, strike prices, minimum 

increments, position and exercise limits, 

and margin requirements, will govern 

the listing and trading of options on 

Bitcoin ETPs. 

The Exchange represents that it has 

the necessary systems capacity to 

support any additional traffic that may 

be generated by the trading of options 

on Bitcoin ETPs. In addition, the 

Exchange represents that its existing 

surveillance procedures are adequate to 

properly monitor the trading of options 

on Bitcoin ETPs in all trading sessions 

and to deter and detect violations of 

Exchange rules. The Exchange further 

represents that it will implement new 

surveillance procedures, as necessary, to 

effectively monitor the trading of 

options on Bitcoin ETPs. Finally, the 

Commission has previously approved 

the listing and trading of options on 

other commodity ETFs structured as a 

trust, such as SPDR Gold Trust,28 the 

iShares COMEX Gold Trust,29 the 

iShares Silver Trust,30 the ETFS Gold 

Trust,31 and the ETFS Silver Trust.32


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 89, No. 41 / Thursday, February 29, 2024 / Notices 14915 

33 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. 

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. 

Intramarket Competition: 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 

as options on Bitcoin ETPs will be 

subject to initial listing standards and 

continued listing standards the same as 

other options on ETFs listed on the 

Exchange. Further, options on Bitcoin 

ETPs will be subject to Exchange rules 

that currently govern the listing and 

trading of options on ETFs, including 

permissible expirations, strike prices, 

minimum increments, position and 

exercise limits, and margin 

requirements. Moreover, options on 

Bitcoin ETPs will be equally available to 

all market participants who wish to 

trade such options. Finally, and as 

stated above, the Exchange already lists 

options on other commodity ETFs 

structured as a trust. 

Intermarket Competition: The 

Exchange does not believe the proposal 

will impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. To the extent that 

permitting options on Bitcoin ETPs to 

trade on the Exchange may make the 

Exchange a more attractive marketplace 

to market participants, such market 

participants are free to elect to become 

market participants on the Exchange. 

Additionally, other options exchanges 

are free to amend their listing rules, as 

applicable, to permit them to list and 

trade options on Bitcoin ETPs. The 

Exchange believes that the proposed 

rule change may relieve any burden on, 

or otherwise promote, competition as it 

is designed to increase competition for 

order flow on the Exchange in a manner 

that is beneficial to investors by 

providing them with a lower-cost option 

to hedge their investment portfolios. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily direct 

order flow to competing venues that 

offer similar products. Ultimately, the 

Exchange believes that offering options 

on Bitcoin ETPs for trading on the 

Exchange will promote competition by 

providing investors with an additional, 

relatively low-cost means to hedge their 

portfolios and meet their investment 

needs in connection with spot bitcoin 

prices and bitcoin related products and 

positions. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) by order approve or disapprove 

the 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– 

NYSEAMER–2024–10 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–NYSEAMER–2024–10. 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–NYSEAMER–2024–10 and should 

be submitted on or before March 21, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–04169 Filed 2–28–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99591; File No. SR–NYSE– 

2024–08] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Content of the NYSE Best Quote & 

Trades Data Feed 

February 23, 2024. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on February 

14, 2024, New York Stock Exchange 

LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘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. 


khammond on DSKJM1Z7X2PROD with NOTICES