Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices 83723 

19See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005). 

20NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. 

Cir. 2010) (quoting Securities Exchange Act Release 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca–2006–21)). 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f). 23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Exchange Rule 1.1 defines a ‘‘Unit’’ (which may 

also be referred to as an exchange-traded fund 

(‘‘ETF’’)) as a share or other security traded on a 

national securities exchange and defined as an NMS 

stock as set forth in Rule 4.3. 

4See Securities Exchange Act Release No. 100862 

(Aug. 28, 2024), 89 FR 72146. 

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

investors and listed companies.’’ 19 The 

fact that this market is competitive has 

also long been recognized by the courts. 

In NetCoalition v. Securities and 

Exchange Commission, the D.C. Circuit 

stated as follows: ‘‘[n]o one disputes 

that competition for order flow is 

‘fierce.’ . . . As the SEC explained, ‘[i]n 

the U.S. national market system, buyers 

and sellers of securities, and the brokerdealers that act as their order-routing 

agents, have a wide range of choices of 

where to route orders for execution’; 

[and] ‘no exchange can afford to take its 

market share percentages for granted’ 

because ‘no exchange possesses a 

monopoly, regulatory or otherwise, in 

the execution of order flow from broker 

dealers’. . . .’’ 20 Accordingly, the 

Exchange does not believe its proposed 

change imposes any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

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 

The foregoing rule change has become 

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

of the Act 21 and paragraph (f) of Rule 

19b–4 22 thereunder. 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeEDGX–2024–061 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–CboeEDGX–2024–061. 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–CboeEDGX–2024–061 and should be 

submitted on or before November 7, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–23904 Filed 10–16–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101321; File No. SR– 

CBOE–2024–036] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Designation 

of a Longer Period for Commission 

Action on a Proposed Rule Change To 

Amend Exchange Rule 4.3 To List and 

Trade Options on Units That Represent 

Interests in Ethereum ExchangeTraded Products 

October 11, 2024. 

On August 19, 2024, Cboe Exchange, 

Inc. (‘‘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 

amend Exchange Rule 4.3 regarding the 

criteria for underlying securities. 

Specifically, the Exchange proposes to 

amend Exchange Rule 4.3, 

Interpretation and Policy .06(a)(4) to 

allow the Exchange to list and trade 

options on Units 3 that represent 

interests in the following exchangetraded products: the Fidelity Ethereum 

Fund, the 21Shares Core Ethereum ETF, 

the Invesco Galaxy Ethereum ETF, the 

Franklin Ethereum ETF, the VanEck 

Ethereum Trust, the Grayscale Ethereum 

Trust, the Grayscale Mini Ethereum 

Trust, the Bitwise Ethereum ETF, and 

the iShares Ethereum Trust ETF, 

designating them as Units deemed 

appropriate for options trading on the 

Exchange. The proposed rule change 

was published for comment in the 

Federal Register on September 4, 2024.4

The Commission received no comment 

letters regarding the proposed rule 

change. 

Section 19(b)(2) of the Act 5 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 


ddrumheller on DSK120RN23PROD with NOTICES1
83724 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices 

6 Id. 

7 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. 80a–1 et seq. 

4See Securities Exchange Act Release No. 100473 

(July 9, 2024), 89 FR 57491 (‘‘Notice’’). Comments 

on the proposed rule change are available at: 

https://www.sec.gov/comments/sr-cboebzx-2024- 

055/srcboebzx2024055.htm. 

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

6See Securities Exchange Act Release No. 

100867, 89 FR 71944 (Sept. 4, 2024). The 

Commission designated October 13, 2024, as the 

date by which the Commission shall approve or 

disapprove, or institute proceedings to determine 

whether to disapprove, the proposed rule change, 

as modified by Amendment No. 1. 

7 15 U.S.C. 78s(b)(2)(B). 

8See BZX Rules 14.8(e) and (i). The Exchange 

states that the only products currently listed on the 

Exchange that are registered under the 1940 Act are 

those that fall within the definition of Derivative 

Securities (as defined below), and that there are 

currently no CEFs listed on the Exchange. See 

Notice, supra note 4, at 57493 n.15. 

9The term ‘‘Company’’ means the issuer of a 

security listed or applying to list on the Exchange. 

See BZX Rule 14.1(a)(3). 

10The term ‘‘Shareholder’’ means a record or 

beneficial owner of a security listed or applying to 

list. See BZX Rule 14.1(a)(28). 

11Specifically, BZX Rule 14.10(e)(1)(F)(i) 

exempts from this annual shareholder meeting 

requirement issuers whose only securities listed on 

the Exchange are nonvoting preferred securities, 

debt securities or Derivative Securities. BZX Rule 

14.10(e)(1)(F)(ii) defines ‘‘Derivative Securities’’ as 

Commodity Futures Trust Shares (Rule 14.11(e)(7)), 

Commodity Index Trust Shares (Rule 14.11(e)(6)), 

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

Commodity-Linked Securities (Rule 14.11(d)(K)(ii)), 

Currency Trust Shares (Rule 14.11(e)(5)), Equity 

Gold Shares (Rule 14.11(e)(2)), Equity Index-Linked 

Securities (Rule 14.11(d)(K)(i)), ETF Shares (Rule 

14.11(l)), Fixed Income Index-Linked Securities 

(Rule 14.11(d)(K)(iii)), Futures-Linked Securities 

(Rule 14.11(d)(K)(iv)), Index Fund Shares (Rule 

14.11(c)), Index-Linked Exchangeable Notes (Rule 

14.11(e)(1)), Managed Fund Shares (Rule 14.11(i)), 

Managed Portfolio Shares (Rule 14.11(k)), Managed 

Trust Securities (Rule 14.11(e)(10)), Multifactor 

Index-Linked Securities (Rule 14.11(d)(K)(v)), 

Partnership Units (Rule 14.11(e)(8)), Portfolio 

Depository Receipts (Rule 14.11(b)), SEEDS (Rule 

14.11(e)(12)), Tracking Fund Shares (Rule 

14.11(m)), Trust Certificates (Rule 14.11(e)(3)), and 

Trust Issued Receipts (Rule 14.11(f)). 

12Business development companies, which the 

Exchange states are a type of closed-end 

management investment company defined in 

Section 2(a)(48) of the 1940 Act that are not 

registered under the 1940 Act, will still be required 

to comply with all of the provisions of BZX Rule 

14.10. See Interpretations and Policies .13 to BZX 

Rule 14.10. 

13 15 U.S.C. 78s(b)(2)(B). 

14 Id. 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is October 19, 

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. 

Accordingly, the Commission, pursuant 

to Section 19(b)(2) of the Act,6

designates December 3, 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–CBOE–2024–036). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–23982 Filed 10–16–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101322; File No. SR– 

CboeBZX–2024–055] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Exempt ClosedEnd Management Investment 

Companies Registered Under the 

Investment Company Act of 1940 From 

the Annual Meeting of Shareholders 

Requirement Set Forth in Exchange 

Rule 14.10(f) 

October 11, 2024. 

I. Introduction 

On June 25, 2024, 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 (‘‘Exchange 

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

proposed rule change to exempt closedend management investment companies 

registered under the Investment 

Company Act of 1940 (‘‘1940 Act’’) 3

from the annual meeting of shareholders 

requirement set forth in Exchange Rule 

14.10(f). On July 2, 2024, the Exchange 

filed Amendment No. 1 to the proposed 

rule change, which replaced and 

superseded the proposed rule change in 

its entirety. The proposed rule change, 

as modified by Amendment No. 1, was 

published for comment in the Federal 

Register on July 15, 2024.4 On August 

28, 2024, pursuant to Section 19(b)(2) of 

the Exchange Act,5 the Commission 

designated a longer period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to disapprove the proposed 

rule change, as modified by Amendment 

No. 1.6 The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Exchange Act 7 to 

determine whether to approve or 

disapprove the proposed rule change, as 

modified by Amendment No. 1. 

II. Description of the Proposed Rule 

Change, as Modified by Amendment 

No. 1 

BZX Rule 14.8 (General Listing 

Requirements—Tier I) sets forth listing 

requirements for closed-end 

management investment companies 

registered under the 1940 Act 

(‘‘CEFs’’).8 BZX Rule 14.10(f) generally 

requires that each Company 9 listing 

common stock or voting preferred stock, 

and their equivalents, shall hold an 

annual meeting of Shareholders 10 no 

later than one year after the end of the 

Company’s fiscal year-end. BZX Rule 

14.10(e) sets forth certain exemptions 

from certain corporate governance 

requirements, including certain 

exemptions to the annual shareholder 

meeting requirement in BZX Rule 

14.10(f).11 Any CEF that would be listed 

on the Exchange would be required to 

comply with the annual shareholder 

meeting requirement set forth in BZX 

Rule 14.10(f) and would not be subject 

to an exemption. The Exchange 

proposes to amend BZX Rule 

14.10(e)(1)(E) to exempt CEFs from the 

BZX Rule 14.10(f) requirement to hold 

annual shareholder meetings. The 

Exchange also proposes to amend 

Interpretations and Policies .13 

(Management Investment Companies) 

and .15 (Meetings of Shareholders or 

Partners) to BZX Rule 14.10 to specify 

that CEFs are exempt from the annual 

shareholder meeting requirement set 

forth in BZX Rule 14.10(f).12

III. Proceedings To Determine Whether 

To Approve or Disapprove SR– 

CboeBZX–2024–055 and Grounds for 

Disapproval Under Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Exchange Act 13 to 

determine whether the proposed rule 

change, as modified by Amendment No. 

1, should be approved or disapproved. 

Institution of proceedings is appropriate 

at this time in view of the legal and 

policy issues raised by the proposed 

rule change. Institution of proceedings 

does not indicate that the Commission 

has reached any conclusions with 

respect to any of the issues involved. 

Pursuant to Section 19(b)(2)(B) of the 

Exchange Act,14 the Commission is 

providing notice of the grounds for 

disapproval under consideration. The 

Commission is instituting proceedings 

to allow for additional analysis of the 


ddrumheller on DSK120RN23PROD with NOTICES1