90104 Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 

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 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. The 

proposed fee change will not impact 

intramarket competition because it will 

apply to all similarly situated Members 

equally (i.e., all market participants that 

choose to purchase the 10 Gb physical 

port). Additionally, the Exchange does 

not believe its proposed pricing will 

impose a barrier to entry to smaller 

participants and notes that its proposed 

connectivity pricing is associated with 

relative usage of the various market 

participants. For example, market 

participants with modest capacity needs 

can continue to buy the less expensive 

1 Gb physical port (which cost is not 

changing) or may choose to obtain 

access via a third-party re-seller. While 

pricing may be increased for the larger 

capacity physical ports, such options 

provide far more capacity and are 

purchased by those that consume more 

resources from the network. 

Accordingly, the proposed connectivity 

fees do not favor certain categories of 

market participants in a manner that 

would impose a burden on competition; 

rather, the allocation reflects the 

network resources consumed by the 

various size of market participants— 

lowest bandwidth consuming members 

pay the least, and highest bandwidth 

consuming members pays the most. 

The proposed fee change also does 

not impose a burden on competition or 

on other Self-Regulatory Organizations 

that is not necessary or appropriate. As 

described above, the Exchange 

evaluated its proposed fee change using 

objective and stable metric with limited 

volatility. Utilizing Data Processing PPI 

over a specified period of time is a 

reasonable means of recouping a portion 

of the Exchange’s investment in 

maintaining and enhancing the 

connectivity service identified above. 

The Exchange believes utilizing Data 

Processing PPI, a tailored measure of 

inflation, to increase certain 

connectivity fees to recoup the 

Exchange’s investment in maintaining 

and enhancing its services and products 

would not impose a burden on 

competition. 

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– 

CboeBZX–2024–109 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–CboeBZX–2024–109. 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–CboeBZX–2024–109 and should be 

submitted on or before December 5, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26194 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101557; File No. SR– 

NYSEARCA–2024–92] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 6.4–O To 

Allow for the Interval Between Strike 

Prices of Series of Options on Shares 

of the SPDR Gold Shares To Be $1 or 

Greater and To Expand the Short Term 

Option Series Program To Permit the 

Listing of Two Monday Expirations For 

Options on Shares of the SPDR Gold 

Shares, iShares Silver Trust, and 

iShares 20+ Year Treasury Bond ETF 

November 7, 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 November 

4, 2024, NYSE Arca, Inc. (‘‘NYSE 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. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90105 

4See Securities Exchange Act Release Nos. 

100447 (June 28, 2024), 89 FR 55239 (July 3, 2024) 

(SR–ISE–2024–17) (Order Approving a Proposed 

Rule Change To Amend the Strike Interval for 

Options on Exchange-Traded Fund Shares and To 

Allow $1 Strike Price Intervals Above $200 for 

Options on SPDR Gold Shares (GLD)) (‘‘Nasdaq ISE 

GLD Approval’’); and 100837 (August 27, 2024), 89 

FR 71770 (September 3, 2024) (SR–ISE–2024–21) 

(Notice of Filing of Amendment No. 1 and Order 

Granting Accelerated Approval of a Proposed Rule 

Change, as Modified by Amendment No. 1, to 

Adopt Rules to Permit the Listing of Two Monday 

Expirations for Options on SPDR Gold Shares, 

iShares Silver Trust, and iShares 20+ Year Treasury 

Bond ETF) (‘‘Nasdaq ISE Monday Approval’’, and 

collectively, ‘‘Nasdaq ISE Approval Orders’’). 

5See Nasdaq ISE GLD Approval. 

6See proposed Rule 6.4–O, Commentary .05(d) 

(including GLD in the list of ETFs eligible for strike 

prices of $1 or greater, including when the strike 

price is greater than $200. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.4–O (Series of Options Open For 

Trading). 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 

Rule 6.4–O (Series of Options Open For 

Trading). Specifically, the Exchange 

proposes to allow for the interval 

between strike prices of series of options 

on shares of SPDR Gold Shares (‘‘GLD’’) 

to be $1 or greater, including where the 

strike price is greater than $200, and to 

expand the Short Term Option Series 

(‘‘STOS’’) Program to permit the listing 

of two Monday expirations for options 

on GLD, iShares Silver Trust (‘‘SLV’’), 

and iShares 20+ Year Treasury Bond 

ETF (‘‘TLT’’). Both proposed changes 

are competitive and based on proposals 

submitted by Nasdaq ISE, LLC (‘‘Nasdaq 

ISE’’) and approved by the 

Commission.4

Expand $1 Strike Intervals for GLD 

First, the Exchange proposes to 

amend Rule 6.4–O to allow for the 

interval between strike prices of series 

of options on GLD to be $1 or greater, 

including where the strike price is 

greater than $200, which would align 

Exchange rules with that of at least one 

of its competitors.5

Currently, Commentary .05(a) 

provides that for series of options on 

Exchange-Traded Fund Shares, ‘‘the 

interval of strike prices may be $1 or 

greater where the strike price is $200 or 

less or $5 or greater where the strike 

price is over $200.’’ 

Further, Commentary .05(d) provides 

that, notwithstanding any other 

provision of Rule 6.4–O regarding the 

interval of strike prices of series of 

options on Exchange-Traded Fund 

Shares, the interval of strike prices on 

options on SPDR® S&P 500® ETF 

(‘‘SPY’’), iShares Core S&P 500 ETF 

(‘‘IVV’’), PowerShares QQQ Trust 

(‘‘QQQ’’), iShares Russell 2000 Index 

Fund (‘‘IWM’’), and the SPDR® Dow 

Jones® Industrial Average ETF (‘‘DIA’’) 

will be $1 or greater. 

The Exchange proposes to modify the 

interval setting regime to be $1 or 

greater for GLD options, which would 

align GLD with SPY, IVV, QQQ, IWM 

and DIA.6 The Exchange believes that 

the proposed rule change would make 

GLD options easier for investors and 

traders to use and more tailored to their 

investment needs. GLD is an ExchangeTraded Fund Shares designed to closely 

track the price and performance of the 

price of gold bullion. GLD is widely 

quoted as an indicator of gold stock 

prices and is a significant indicator of 

overall economic health. Investors use 

GLD to diversify their portfolios and 

benefit from market trends. 

Additionally, GLD is a leading product 

in its asset class that trades within a 

‘‘complex’’ where, in addition to the 

underlying security, there are multiple 

instruments available for hedging such 

as, COMEX Gold Futures; Gold Daily 

Futures; iShares GOLD Trust; SPDR 

GOLD Minishares Trust; Aberdeen 

Physical Gold Trust; and GraniteShares 

Gold Shares. 

Accordingly, the Exchange believes 

that offering a wider base of GLD 

options affords traders and investors 

important hedging and trading 

opportunities, particularly in the midst 

of current price trends. The Exchange 

believes that not having the proposed $1 

strike price intervals above $200 in GLD 

significantly constricts investors’ 

hedging and trading possibilities. The 

Exchange therefore believes that by 

having smaller strike intervals in GLD, 

investors would have more efficient 

hedging and trading opportunities due 

to the lower $1 interval ascension. The 

proposed $1 interval above the $200 

strike price, will result in having at-themoney series based upon the underlying 

Exchange-Traded Fund Share moving 

less than 1%. The Exchange believes 

that the proposed strike setting regime 

is in line with the slower movements of 

broad-based indices. Given that $1 

intervals already exist below the $200 

price point and that GLD have 

consistently inclined in price toward 

the $200 level, the Exchange believes 

that continuing to maintain the current 

$200 level (above which intervals 

increase 500% to $5), may have a 

negative effect on investing, trading and 

hedging opportunities, and volume. The 

Exchange believes that the investing, 

trading, and hedging opportunities 

available with GLD options far 

outweighs any potential negative impact 

of allowing GLD options to trade in 

more finely tailored intervals above the 

$200 price point. 

The proposed strike setting regime 

would permit strikes to be set to more 

closely reflect the increasing value in 

the underlying and allows investors and 

traders to roll open positions from a 

lower strike to a higher strike in 

conjunction with the price movements 

of the underlying ETF. Under the 

current rule, where the next higher 

available series would be $5 away above 

a $200 strike price, the ability to roll 

such positions would be impaired. 

Accordingly, to move a position from a 

$200 strike to a $205 strike under the 

current rule, an investor would need for 

the underlying product to move 2.5% 

and would not be able to execute a roll 

up until such a large movement 

occurred. The Exchange believes that 

with the proposed rule change, the 

investor would be in a significantly 

safer position of being able to roll his 

open options position from a $200 to a 

$201 strike price, which is only a 0.5% 

move for the underlying. As a result, the 

proposed rule change will allow the 

Exchange to better respond to customer 

demand for GLD strike price more 

precisely aligned with the smaller, 

longer-term incremental increases in the 

underlying ETF. The Exchange believes 

that the proposed rule change, like the 

other strike price programs currently 

offered by the Exchange, will benefit 

investors by providing investors the 

flexibility to more closely tailor their 


ddrumheller on DSK120RN23PROD with NOTICES1
90106 Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 

7Today, the Exchange permits the listing of two 

Wednesday expirations for options on United States 

Oil Fund, LP (‘‘USO’’), United States Natural Gas 

Fund, LP (‘‘UNG’’), GLD, SLV, and TLT. See 

Securities Exchange Act Release No. 100273 (June 

4, 2024), 89 FR 48937 (June 10, 2024) (SR– 

NYSEARCA–2024–43). 

8See Nasdaq ISE Monday Approval. 

9As set forth in Table 1, the Exchange currently 

only permits Wednesday expirations for USO, UNG, 

GLD, SLV, and TLT. 

10See proposed Commentary .07(g) to Rule 6.4– 

O (updating Table 1). 

11Today, USO, UNG, GLD, SLV, and TLT may 

trade on Wednesdays. See id. They may also trade 

on Fridays, as is the case for all options series in 

the STOS Program. 

12See Commentary .07(g) to Rule 6.4–O. 

13See Commentary .07(e) to Rule 6.4–O. 

14See Commentary .07(c) to Rule 6.4–O 

15See Commentary .07(d) to Rule 6.4–O. 

investment and hedging decisions using 

GLD options. 

Moreover, by allowing series of GLD 

options to be listed in $1 intervals 

between strike prices over $200, the 

proposal will moderately augment the 

potential total number of options series 

available on the Exchange. However, the 

Exchange believes it and the Options 

Price Reporting Authority (‘‘OPRA’’) 

have the necessary systems capacity to 

handle any potential additional traffic 

associated with this proposed rule 

change. The Exchange also believes that 

market participants will not have a 

capacity issue due to the proposed rule 

change. In addition, the Exchange 

represents that it does not believe that 

this expansion will cause fragmentation 

of liquidity, but rather, believes that 

finer strike intervals will serve to 

increase liquidity available as well as 

price efficiency by providing more 

trading opportunities for all market 

participants. 

Expand STOS Program To Add Monday 

Expirations 

The Exchange proposes to expand the 

Short Term Option Daily Expirations to 

permit the listing of two Monday 

expirations of options on GLD, SLV, and 

TLT (collectively ‘‘Exchange Traded 

Products’’ or ‘‘ETPs’’),7 which would 

align Exchange rules with that of at least 

one of its competitors.8

Currently, as set forth in Rule 6.4–O, 

Commentary .07, after an option class 

has been approved for listing and 

trading on the Exchange, the Exchange 

may open for trading on any Thursday 

or Friday that is a business day (‘‘Short 

Term Option Opening Date’’) series of 

options on that class that expire at the 

close of business on each of the next 

five Fridays that are business days and 

are not Fridays on which standard 

expiration options series, Monthly 

Options Series, or Quarterly Options 

Series expire (‘‘Friday Short Term 

Option Expiration Dates’’). The 

Exchange may have no more than a total 

of five Short Term Option Expiration 

Dates. Further, if the Exchange is not 

open for business on the respective 

Thursday or Friday, the Short Term 

Option Opening Date for Short Term 

Option Weekly Expirations will be the 

first business day immediately prior to 

that respective Thursday or Friday. 

Similarly, if the Exchange is not open 

for business on a Friday, the Short Term 

Option Expiration Date for Short Term 

Option Weekly Expirations will be the 

first business day immediately prior to 

that Friday. 

Additionally, the Exchange may open 

for trading series of options on the 

symbols provided in Table 1 of 

Commentary .07(g) to Rule 6.4–O 

(‘‘Table 1’’) that 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 (‘‘Short 

Term Option Daily Expirations’’).9 For 

those symbols listed in Table 1, the 

Exchange may have no more than a total 

of two Short Term Option Daily 

Expirations beyond the current week for 

each of Monday, Tuesday, Wednesday, 

and Thursday expirations, as applicable, 

at one time. 

At this time, the Exchange proposes to 

expand the Short Term Option Daily 

Expirations to permit the listing and 

trading of options on GLD, SLV, and 

TLT expiring on Mondays. The 

Exchange proposes to permit two Short 

Term Option Expiration Dates beyond 

the current week for each Monday 

expiration at one time, and would 

update Table 1 for each of those 

symbols accordingly.10

The proposed Monday GLD, SLV, and 

TLT expirations will be similar to the 

current Monday SPY, QQQ, and IWM 

Short Term Option Daily Expirations set 

forth in Rule 6.4–O, such that the 

Exchange may open for trading on any 

Friday or Monday that is a business day 

(beyond the current week) series of 

options on GLD, SLV, and TLT to expire 

on any Monday of the month that is a 

business day and is not a Monday on 

which standard expiration options 

series, Monthly Options Series, or 

Quarterly Options Series expire, 

provided that Monday expirations that 

are listed on a Friday must be listed at 

least one business week and one 

business day prior to the expiration 

(‘‘Monday GLD Expirations,’’ ‘‘Monday 

SLV Expirations,’’ and ‘‘Monday TLT 

Expirations’’) (collectively, ‘‘Monday 

ETP Expirations’’).11 In the event Short 

Term Option Daily Expirations expire 

on a Monday and that Monday is the 

same day that a standard expiration 

options series, Monthly Options Series, 

or Quarterly Options Series expires, the 

Exchange would skip that week’s listing 

and instead list the following week; the 

two weeks would therefore not be 

consecutive. Today, Monday expirations 

in SPY, QQQ, and IWM similarly skip 

the weekly listing in the event the 

weekly listing expires on the same day 

in the same class as a standard 

expiration options series, Monthly 

Options Series, or Quarterly Options 

Series. 

The interval between strike prices for 

the proposed Monday ETP Expirations 

will be the same as those currently 

applicable in the STOS Program.12

Specifically, the Monday ETP 

Expirations will have a strike interval of 

(i) $0.50 or greater for strike prices 

below $100, and $1 or greater for strike 

prices between $100 and $150 for all 

option classes that participate in the 

STOS Program, (ii) $0.50 for option 

classes that trade in one dollar 

increments and are in the STOS 

Program, or (iii) $2.50 or greater for 

strike prices above $150.13 As is the case 

with other equity options series listed 

pursuant to the STOS Program, the 

Monday ETP Expirations series will be 

P.M.-settled. 

Pursuant to Commentary .07(g) to 

Rule 6.4–O, with respect to the STOS 

Program, if a Monday is not a business 

day, the series will expire on the first 

business day immediately following that 

Monday. 

Currently, for each option class 

eligible for participation in the STOS 

Program, the Exchange is limited to 

opening thirty (30) series for each 

expiration date for the specific class.14

The thirty (30) series restriction does 

not include series that are open by other 

securities exchanges under their 

respective weekly rules; the Exchange 

may list these additional series that are 

listed by other options exchanges.15

With the proposed changes, this thirty 

(30) series restriction would apply to 

Monday GLD, SLV, and TLT Short Term 

Option Daily Expirations as well. In 

addition, the Exchange will be able to 

list series that are listed by other 

exchanges, assuming that they file 

similar rules with the Commission to 

list Monday ETP Expirations. 

With this proposal, Monday ETP 

Expirations would be treated similarly 

to existing Monday SPY, QQQ, and 

IWM Expirations. With respect to 

standard expiration options series, Short 

Term Option Daily Expirations will be 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90107 

16See Commentary .07(g) to Rule 6.4–O. 

17The currently Exchange permits the listing of 

two Wednesday expirations for options on GLD, 

SLV, and TLT. See id. 

18 15 U.S.C. 78f(b) 

19 15 U.S.C. 78f(b)(5). 

20 15 U.S.C. 78f(b)(1). 21See Nasdaq ISE GLD Approval. 

permitted to expire in the same week in 

which Monthly Option Series on the 

same class expire. Not listing Short 

Term Option Daily Expirations for one 

week every month because there was a 

monthly on that same class on the 

Friday of that week would create 

investor confusion. 

Further, as with Monday SPY, QQQ, 

and IWM Expirations, the Exchange 

would not permit Monday ETP 

Expirations to expire on a business day 

in which standard expiration options 

series, Monthly Options Series, or 

Quarterly Options Series expire.16

Therefore, all Short Term Option Daily 

Expirations would expire at the close of 

business on each of the next two 

Mondays, Tuesdays, Wednesdays, and 

Thursdays, respectively, that are 

business days beyond the current week 

and are not business days in which 

standard expiration option series, 

Monthly Options Series, or Quarterly 

Options Series expire. The Exchange 

believes that it is reasonable to not 

permit two expirations on the same day 

in which a standard expiration option 

series, Monthly Options Series, a 

Quarterly Options Series would expire 

because those options would be 

duplicative of each other. 

The Exchange does not believe that 

any market disruptions will be 

encountered with the introduction of 

Monday ETP Expirations. The Exchange 

currently trades P.M.-settled Short Term 

Option Series that expire on Monday for 

SPY, QQQ, and IWM and has not 

experienced any market disruptions nor 

issues with capacity. In addition, the 

Exchange has not experienced any 

market disruptions or issues with 

capacity in expanding the five ETPs to 

the Wednesday expirations.17 Today, 

the Exchange has surveillance programs 

in place to support and properly 

monitor trading in Short Term Option 

Series that expire Monday for SPY, 

QQQ, and IWM. Further, the Exchange 

has the necessary capacity and 

surveillance programs in place to 

support and properly monitor trading in 

the proposed Monday ETP Expirations. 

Because the Exchange proposes to 

limit the number of Monday Expirations 

for options on GLD, SLV, and TLT to 

two expirations beyond the current 

week, the Exchange believes that the 

addition of these Monday ETP 

Expirations should encourage MarketMakers to continue to deploy capital 

more efficiently and improve displayed 

market quality. Similar to SPY, QQQ 

and IWM Monday Expirations, the 

introduction of Monday ETP 

Expirations will, among other things, 

expand hedging tools available to 

market participants and allow for a 

reduced premium cost of buying 

portfolio protection. The Exchange 

believes that Monday ETP Expirations 

will allow market participants to hedge 

their portfolios with options on 

commodities (gold and silver) as well as 

treasury securities, and tailor their 

investment and hedging needs more 

effectively. 

2. Statutory Basis 

The Exchange believes that its 

proposed rule change is consistent with 

the Act and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.18 Specifically, 

the Exchange believes that its proposed 

rule change is consistent with Section 

6(b)(5) 19 requirements in that 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 

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. 

Expand $1 Strike Intervals for GLD 

The Exchange believes the proposal to 

expand $1 strike intervals for GLD to 

include where the strike price is greater 

than $200 is consistent with Section 

6(b)(5) of the Act and will promote just 

and equitable principles of trade 

because it will allow investors to use 

GLD options more easily, regardless of 

the strike price. 

The proposal will allow investors to 

better trade and hedge positions in GLD 

options where the strike price is greater 

than $200, thus ensuring that investors 

in both options are not at a disadvantage 

simply because of the strike price. The 

Exchange believes the proposed rule 

change is consistent with Section 6(b)(1) 

of the Act, which provides that the 

Exchange be organized and have the 

capacity to be able to carry out the 

purposes of the Act and the rules and 

regulations thereunder, and the rules of 

the Exchange.20 The proposal allows the 

Exchange to respond to customer 

demand to allow GLD options to trade 

in $1 intervals above a $200 strike price. 

The Exchange does not believe that the 

proposed rule would create additional 

capacity issues or affect market 

functionality. As noted above, ETF 

options trade in wider $5 intervals 

above a $200 strike price, whereby 

options at or below a $200 strike price 

trade in $1 intervals. This creates a 

situation where contracts on the same 

option class effectively may not be able 

to execute certain strategies such as, for 

example, rolling to a higher strike price, 

simply because of the $200 strike price 

above which options intervals increase 

by 500%. This proposal remedies the 

situation by establishing an exception to 

the current ETF interval regime for GLD 

options to allow such options to trade 

in $1 or greater intervals at all strike 

prices. 

The Exchange believes that the 

proposed rule change, like other strike 

price programs currently offered by the 

Exchange, will benefit investors by 

giving them increased flexibility to more 

closely tailor their investment and 

hedging decisions. By way of example, 

GLD is a leading product in its asset 

class and it trades within a ‘‘complex’’ 

where, in addition to the underlying 

security, there are multiple instruments 

available for hedging such as, COMEX 

Gold Futures; Gold Daily Futures; 

iShares GOLD Trust; SPDR GOLD 

Minishares Trust; Aberdeen Physical 

Gold Trust; and GraniteShares Gold 

Shares. 

With regard to the impact of this 

proposal on system capacity, the 

Exchange believes it and OPRA have the 

necessary systems capacity to handle 

any potential additional traffic 

associated with this proposed rule 

change. The Exchange believes that its 

TPHs will not have a capacity issue as 

a result of this proposal. Further, the 

Exchange does not believe the proposal 

does not unfairly discriminate among 

market participants, as all market 

participants will be treated in the same 

manner under this proposal. 

Finally, the Exchange notes the 

proposed rule change is substantively 

identical to an approved Nasdaq ISE 

rule.21

Expand STOS Program To Add Monday 

Expirations 

Similar to Monday expirations in 

SPY, QQQ, and IWM, the proposal to 

permit Monday ETP Expirations, subject 

to the proposed limitation of two 

expirations beyond the current week, 

would protect investors and the public 

interest by providing the investing 

public and other market participants 


ddrumheller on DSK120RN23PROD with NOTICES1
90108 Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 

22See Commentary .07(g) to Rule 6.4–O, Table 1. 

23See Nasdaq ISE Monday Approval. 

more choice and flexibility to closely 

tailor their investment and hedging 

decisions in these options and allow for 

a reduced premium cost of buying 

portfolio protection, thus allowing them 

to better manage their risk exposure. 

The Exchange believes that there is 

general demand for alternative 

expirations in these symbols. 

The Exchange represents that it has an 

adequate surveillance program in place 

to detect manipulative trading in the 

proposed option expirations, in the 

same way that it monitors trading in the 

current Short Term Option Series for 

Monday SPY, QQQ and IWM 

expirations. The Exchange also 

represents that it has the necessary 

system capacity to support the new 

expirations. Finally, the Exchange does 

not believe that any market disruptions 

will be encountered with the 

introduction of these option expirations. 

As discussed above, the Exchange 

believes that its proposal is a modest 

expansion of weekly expiration dates for 

GLD, SLV, and TLT given that it will be 

limited to two Monday expirations 

beyond the current week. 

The Exchange believes that the 

proposal is consistent with the Act as 

the proposal would overall add a small 

number of Monday ETP Expirations by 

limiting the addition of two Wednesday 

expirations beyond the current week. 

The addition of Monday ETP 

Expirations would remove impediments 

to and perfect the mechanism of a free 

and open market by encouraging Market 

Makers to continue to deploy capital 

more efficiently and improve market 

quality. The Exchange believes that the 

proposal will allow market participants 

to expand hedging tools and tailor their 

investment and hedging needs more 

effectively in GLD, SLV, and TLT as 

these funds are most likely to be utilized 

by market participants to hedge the 

underlying asset classes. The ETPs 

currently trade within ‘‘complexes’’ 

where, in addition to the underlying 

security, there are multiple instruments 

available for hedging. Given the multiasset class nature of these products and 

available hedges in highly correlated 

instruments, the Exchange believes that 

its proposal to add Monday expirations 

on these products will provide market 

participants with additional useful 

hedging tools for the underlying asset 

classes. 

Similar to Monday SPY, QQQ, and 

IWM expirations, the introduction of 

Monday ETP Expirations is consistent 

with the Act as it will, among other 

things, expand hedging tools available 

to market participants and allow for a 

reduced premium cost of buying 

portfolio protection. The Exchange 

believes that Monday ETP Expirations 

will allow market participants to 

purchase options on GLD, SLV, and TLT 

based on their timing as needed and 

allow them to tailor their investment 

and hedging needs more effectively, 

thus allowing them to better manage 

their risk exposure. Today, the 

Exchange lists Monday SPY, QQQ, and 

IWM Expirations.22 In particular, the 

Exchange believes the STOS Program 

has been successful to date and that 

Monday ETP Expirations should simply 

expand the ability of investors to hedge 

risk against market movements 

stemming from economic releases or 

market events that occur throughout the 

month in the same way that the STOS 

Program has expanded the landscape of 

hedging. 

There are no material differences in 

the treatment of Monday SPY, QQQ, 

and IWM expirations compared to the 

proposed Monday ETP Expirations. 

Given the similarities between Monday 

SPY, QQQ, and IWM expirations and 

the proposed Monday ETP Expirations, 

the Exchange believes that applying the 

provisions in Commentary .10(g) to Rule 

6.4–O, that currently apply to Monday 

SPY, QQQ, and IWM expirations is 

justified. For example, the Exchange 

believes that allowing Monday ETP 

Expirations and monthly ETP 

expirations in the same week will 

benefit investors and minimize investor 

confusion by providing Monday ETP 

Expirations in a continuous and 

uniform manner. 

Finally, the Exchange notes the 

proposed rule change is substantively 

identical to an approved Nasdaq ISE 

rule.23

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule changes will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Expand $1 Strike Intervals for GLD 

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. Rather, the 

Exchange believes that the proposed 

rule change will result in additional 

investment options and opportunities to 

achieve the investment and trading 

objectives of market participants seeking 

efficient trading and hedging vehicles, 

to the benefit of investors, market 

participants, and the marketplace in 

general. Specifically, the Exchange 

believes that GLD options investors and 

traders will significantly benefit from 

the availability of finer strike price 

intervals above a $200 price point. In 

addition, the interval setting regime the 

Exchange proposes to apply to GLD 

options is currently applied to SPY, 

IVV, QQQ, IWM and DIA options, 

which are similarly popular and widely 

traded ETF products and track indexes 

at similarly high price levels. Thus, the 

proposed strike setting regime for GLD 

options will allow options on this 

actively traded ETF with index levels at 

corresponding price levels to trade 

pursuant to the same strike setting 

regime. This will permit investors to 

employ similar investment and hedging 

strategies for each of these options. 

The Exchange does not believe the 

proposal will impose any burden on 

intermarket competition, as nothing 

prevents other options exchanges from 

proposing similar rules to make a finer 

strike price intervals above a $200 price 

point available for GLD options. The 

Exchange notes that the proposed rule 

change is not a novel proposal, as the 

Commission recently approved a 

substantively identical proposal of 

another exchange.6 Further, the 

Exchange does not believe the proposal 

will impose any burden on intramarket 

competition, as all market participants 

will be treated in the same manner 

under this proposal. 

Expand STOS Program To Add Monday 

Expirations 

While the proposal will expand the 

Short Term Options Expirations to 

allow Monday ETP Expirations to be 

listed on the Exchange, the Exchange 

believes that this limited expansion for 

Monday expirations for options on GLD, 

SLV, and TLT will not impose an undue 

burden on competition; rather, it will 

meet customer demand. The Exchange 

believes that market participants will 

continue to be able to expand hedging 

tools and tailor their investment and 

hedging needs more effectively in GLD, 

SLV, and TLT. 

Similar to Monday SPY, QQQ, and 

IWM expirations, the introduction of 

Monday ETP 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 allow for a reduced 

premium cost of buying portfolio 

protection. The Exchange believes that 

Monday ETP Expirations will allow 

market participants to purchase options 

on GLD, SLV, and TLT based on their 

timing as needed and allow them to 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 / Notices 90109 

24See Nasdaq ISE Monday Approval. 

25 15 U.S.C. 78s(b)(3)(A). 

26 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

27 17 CFR 240.19b–4(f)(6)(iii). 

28For 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). 

29 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 99711 

(March 11, 2024), 89 FR 18991 (March 15, 2024) 

(SR–FICC–2024–003). FICC also filed the proposals 

contained in the proposed rule change as advance 

notice SR–FICC–2024–801 with the Commission 

pursuant to Section 806(e)(1) of the Dodd-Frank 

Wall Street Reform and Consumer Protection Act 

Continued 

tailor their investment and hedging 

needs more effectively. 

The Exchange does not believe the 

proposal will impose any burden on 

inter-market competition, as nothing 

prevents the other options exchanges 

from proposing similar rules to list and 

trade Monday ETP Expirations. As 

noted above, the Commission recently 

approved a substantively identical 

proposal of another exchange.24 Further, 

the Exchange does not believe the 

proposal will impose any burden on 

intramarket 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 solicited 

or received with respect to 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: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 25 and Rule 19b– 

4(f)(6) thereunder.26

A proposed rule change filed 

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

Act normally does not become operative 

for 30 days after the date of its filing. 

However, Rule 19b–4(f)(6)(iii) 27 permits 

the Commission to designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has requested 

that the Commission waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. According to the Exchange, 

waiver of the operative delay will 

ensure fair competition among the 

exchanges by allowing the Exchange to 

implement its proposal without delay, 

thus creating competition among Short 

Term Option Series throughout the 

industry, which will ultimately benefit 

investors. The proposed rule change 

raises no novel legal or regulatory 

issues. Thus, the Commission believes 

that waiver of the 30-day operative 

delay is consistent with the protection 

of investors and the public interest. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposed rule change 

operative upon filing.28

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 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

NYSEARCA–2024–92 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–2024–92. 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–2024–92 and should be 

submitted on or before December 5, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–26417 Filed 11–13–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101569; File No. SR–FICC– 

2024–003] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Order 

Approving a Proposed Rule Change, 

as Modified by Partial Amendment No. 

1, To Adopt a Minimum Margin Amount 

at GSD 

November 8, 2024. 

On February 27, 2024, Fixed Income 

Clearing Corporation (‘‘FICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule change SR–FICC–2024–003 

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

Securities Exchange Act of 1934 

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

The proposed rule change was 

published for comment in the Federal 

Register on March 15, 2024.3 On March 


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