Federal Register / Vol. 87, No. 68 / Friday, April 8, 2022 / Notices 20901 

50 17 CFR 240.19b–4. 

51Section 19(b)(2) of the Act, as amended by the 

Securities Acts Amendments of 1975, Public Law 

94–29 (June 4, 1975), grants to the Commission 

flexibility to determine what type of proceeding— 

either oral or notice and opportunity for written 

comments—is appropriate for consideration of a 

particular proposal by a self-regulatory 

organization. See Securities Acts Amendments of 

1975, Senate Comm. on Banking, Housing & Urban 

Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 

(1975). 

52 17 CFR 200.30–3(a)(12); 17 CFR 200.30– 

3(a)(57). 

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

2 17 CFR 240.19b–4. 

3See Rule 1.1, definition of ‘‘Unit and ETF’’. 

4See Rules 4.3.06(a)(1)-(3) and (5), which, 

respectively, include Units 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 

Continued 

regulations thereunder. Although there 

do not appear to be any issues relevant 

to approval or disapproval that would 

be facilitated by an oral presentation of 

data, views, and arguments, the 

Commission will consider, pursuant to 

Rule 19b–4 under the Act, 50 any request 

for an opportunity to make an oral 

presentation.51

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposed rule change, as modified by 

Amendment No. 2, should be approved 

or disapproved by April 29, 2022. Any 

person who wishes to file a rebuttal to 

any other person’s submission must file 

that rebuttal May 13, 2022. 

The Commission asks that 

commenters address the sufficiency of 

the Exchange’s statements in support of 

the proposal, which are set forth in 

Amendment No. 2, and any other issues 

raised by the proposed rule change 

under the Act. In this regard, the 

Commission seeks commenters’ views 

regarding whether a delay in the 

calculation of the BZX Official Opening 

Price would affect the trading of BZXlisted securities on other national 

securities exchanges or other trading 

venues or otherwise impact any 

processes that rely on the calculation of 

the BZX Official Opening Price, 

including the calculation and 

dissemination of LULD price bands. 

Comments may be submitted by any 

of the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File No. SR– 

CboeBZX–2021–086 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 No. 

SR–CboeBZX–2021–086. The file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File No. 

SR–CboeBZX–2021–086 and should be 

submitted by April 29, 2022. Rebuttal 

comments should be submitted by May 

13, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.52

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07464 Filed 4–7–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94594; File No. SR–CBOE– 

2022–009] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of a 

Proposed Rule Change To Amend Rule 

4.3.06 To Allow the Exchange To List 

and Trade Options on the Goldman 

Sachs Physical Gold ETF 

April 4, 2022. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that, on March 

25, 2022, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to amend 

Rule 4.3.06 to allow the Exchange to list 

and trade options on the Goldman Sachs 

Physical Gold ETF (‘‘AAAU’’). The text 

of the proposed rule change is provided 

in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegalRegulatory

Home.aspx), at the Exchange’s Office of 

the Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 4.3.06 to allow the Exchange to list 

and trade options on the Goldman Sachs 

Physical Gold ETF (‘‘AAAU’’ or the 

‘‘Trust’’) as a Unit deemed appropriate 

for options trading on the Exchange. 

Rule 4.3.06(a) provides that securities 

deemed appropriate for options trading 

include Units (also referred to as 

Exchange-Traded Funds (‘‘ETFs’’)) 3 that 

represent certain types of interests,4 and 


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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’’) 

5The Trust may include minimal cash. 

6The trusts may include minimal cash. 

7The Exchange notes that the year-to-date (March 

23, 2022) average daily volume (‘‘ADV’’) of AAAU 

shares is approximately 845,200 shares, the market 

capitalization of AAAU as of March 23, 2022 is 

approximately $727.3 million and the NAV of its 

shares is $19.19. 

8See Rule 4.3.01, which provides for guidelines 

established by the Board of Directors to be 

considered by the Exchange in evaluating potential 

underlying securities for Exchange option 

transactions. 

Rule 4.3.06(a)(4), in particular, includes 

Units that represent interests in the 

SPDR Gold Trust or the iShares COMEX 

Gold Trust or the iShares Silver Trust or 

the ETFS Silver Trust or the ETFS Gold 

Trust or the ETFS Palladium Trust or 

the ETFS Platinum Trust or the Sprott 

Physical Gold Trust. The proposed rule 

change expands the ETFs under Rule 

4.3.06(a)(4) deemed appropriate for 

options trading on the Exchange to 

include AAAU. The Exchange notes that 

the proposed rule change makes a 

nonsubstantive change to Rule 

4.3.06(a)(4) by replacing superfluous 

conjunctions with commas to simplify 

the rule language, and by updating the 

‘‘ETFS Silver Trust’’, the ‘‘ETFS Gold 

Trust’’, the ‘‘ETFS Palladium Trust’’ and 

the ‘‘ETFS Platinum Trust’’ to the 

‘‘Aberdeen Standard Physical Silver 

Trust’’, the ‘‘Aberdeen Standard 

Physical Gold Trust’’, the ‘‘Aberdeen 

Standard Physical Palladium Trust’’, the 

‘‘Aberdeen Standard Physical Platinum 

Trust’’, respectively, as these ETFs were 

renamed in 2018. 

Like the SPDR Gold Trust (‘‘GLD’’), 

iShares COMEX Gold Trust (‘‘IAU’’), 

Aberdeen Standard Physical Gold Trust 

(‘‘SGOL’’), and Sprott Physical Gold 

Trust (‘‘PHYS’’), currently deemed 

appropriate for options trading pursuant 

to Rule 4.3.06(a)(4), AAAU is a goldbacked commodity ETF structured as a 

trust. Specifically, the Trust’s 

investment objective is for its shares to 

reflect the performance of the price of 

gold (less the expenses of the Trust’s 

operations), offering investors an 

opportunity to gain exposure to gold 

without the complexities of gold 

delivery. The Trust issues Goldman 

Sachs Physical Gold ETF Shares, which 

represent units of fractional undivided 

beneficial interest in the Trust, the 

assets of which consist principally of 

gold.5 AAAU is a competitively priced 

commodity ETF, the cost of which is 

comparatively lower than the industry 

average for commodity ETFs. AAAU 

provides investors with a cost-efficient 

alternative that allows a level of 

participation in the gold market through 

the securities market. Likewise, the 

GLD, IAU, SGOL and PHYS trusts also 

issue shares that represent fractional 

undivided beneficial interest in the 

respective trust, each of which holds 

physical gold and is designed to track 

gold or the performance of the price of 

gold and offer access to the gold 

market.6

The Exchange believes that offering 

options on AAAU will benefit investors 

by providing them with an additional, 

relatively lower cost investing tool to 

gain exposure to the price of gold and 

hedging vehicle to meet their 

investment needs in connection with 

gold-related products and positions. The 

Exchange understands from customers 

that investors may currently transact in 

options on AAAU in the unregulated 

over-the-counter (‘‘OTC’’) options 

market, but may prefer to trade such 

options in a listed environment to 

receive the benefits of trading listing 

options, including (1) enhanced 

efficiency in initiating and closing out 

position; (2) increased market 

transparency; and (3) heightened contraparty creditworthiness due to the role of 

OCC as issuer and guarantor of all listed 

options. The Exchange believes that 

listing AAAU options may shift 

liquidity from the OTC market onto the 

Exchange, would increase market 

transparency and enhance the process of 

price discovery conducted on the 

Exchange through increased order flow. 

As described above, the gold-backed 

commodity ETFs (GLD, IAU, SGOL and 

PHYS) on which the Exchange may 

already list and trade options are trusts 

structured in substantially the same 

manner as AAAU and essentially offer 

the same objectives and benefits to 

investors. The Exchange notes that it 

has not identified any issues with the 

continued listing and trading of the 

gold-backed commodity ETF options 

that it currently lists and trades on the 

Exchange. 

AAAU options will trade in the same 

manner as any other ETF options on the 

Exchange. The Exchange Rules that 

currently apply to the listing and 

trading of all ETF options on the 

Exchange, including, for example, Rules 

that govern listing criteria, expiration 

and exercise prices, minimum 

increments, position and exercise limits, 

margin requirements, customer accounts 

and trading halt procedures will apply 

to the listing and trading of options on 

AAAU on the Exchange in the same 

manner as they apply to other options 

on all other Units that are listed and 

traded on the Exchange, including the 

gold-backed commodity ETFs already 

deemed appropriate for options trading 

on the Exchange pursuant to Rule 

4.3.06(a)(4). 

The Exchange’s initial listing 

standards for ETFs on which options 

may be listed and traded on the 

Exchange will apply to AAAU. The 

Exchange notes that AAAU satisfies the 

initial listing standards as set forth in 

Rule 4.3(a) and Rule 4.3.06(b). Pursuant 

to Rule 4.3(a), a security (which 

includes an ETF) on which options may 

be listed and traded on the Exchange 

must be duly registered and be an NMS 

stock, and characterized by a substantial 

number of outstanding shares which are 

widely held and actively traded.7 Rule 

4.3.06(b) requires that Units must meet 

either (1) the criteria and guidelines 

under Rule 4.3.01,8 or (2) they must be 

available for creation or redemption 

each business day from or through the 

issuer in cash or in kind at a price 

related to net asset value, and the issuer 

must be obligated to issue Units in a 

specified aggregate number even if some 

or all of the investment assets required 

to be deposited have not been received 

by the issuer, subject to the condition 

that the person obligated to deposit the 

investments has undertaken to deliver 

the investment assets as soon as 

possible and such undertaking is 


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9See Goldman Sachs Physical Gold ETF, 

Prospectus (January 8, 2021) available at https://

www.gsam.com/content/gsam/us/en/individual/ 

products/etf-fund-finder/goldman-sachs-physicalgold-etf.html#activeTab=overview. 

10See Rule 4.2, which provides that the rights 

and obligations of holders and writers shall be as 

set forth in the Rules of the Clearing Corporation; 

and see Cboe Equity Options Product Specifications 

(March 23, 2022) available at https://

www.cboe.com/exchange_traded_stock/equity_

options_spec/ 

?msclkid=8079efbbaaf111ec83b46e77a2984348; 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. 

11See Rule 4.5(b). The monthly expirations are 

subject to certain listing criteria for underlying 

securities described within Rule 4.3. Monthly 

listings expire the third Friday of the month. The 

term ‘‘expiration date’’ when used in respect of a 

series of binary options other than event options 

means the last day on which the options may be 

automatically exercised. In the case of a series of 

event options (other than credit default options or 

credit default basket options) that are be 

automatically exercised prior to their expiration 

date upon receipt by the Corporation of an event 

confirmation, the expiration date is the date 

specified by the listing Exchange; provided, 

however, that when an event confirmation is 

deemed to have been received by the Corporation 

with respect to such series of options, the 

expiration date will be accelerated to the date on 

which such event confirmation is deemed to have 

been received by the Corporation or such later date 

as the Corporation may specify. In the case of a 

series of credit default options or credit default 

basket options, the expiration date is the fourth 

business day after the last trading day for such 

series as such trading day is specified by the 

Exchange on which the series of options is listed; 

provided, however, that when an event 

confirmation is deemed to have been received by 

the Corporation with respect to a series of credit 

default options or single payout credit default 

basket options prior to the last trading day for such 

series, the expiration date for options of that series 

will be accelerated to the second business day 

following the day on which such event 

confirmation is deemed to have been received by 

the Corporation. ‘‘Expiration date’’ means, in 

respect of a series of range options expiring prior 

to February 1, 2015, the Saturday immediately 

following the third Friday of the expiration month 

of such series, and, in respect of a series of range 

options expiring on or after February 1, 2015 means 

the third Friday of the expiration month of such 

series, or if such Friday is a day on which the 

Exchange on which such series is listed is not open 

for business, the preceding day on which such 

Exchange is open for business. See The Options 

Clearing Corporation (‘‘OCC’’) By-Laws at Section 1. 

12The weekly listing program is known as the 

Short Term Option Series Program and is described 

within Rule 4.5(d). 

13See Rule 4.5(e). 

14See Rule 4.5(f). 

15The Exchange notes that for options listed 

pursuant to the Short Term Option Series Program, 

Rule 4.5(d)(5) specifically sets forth intervals 

between strike prices on Short Term Option Series. 

16See Rule 4.5.01(a). 

17See Rule 4.5.01(b). 

18See Rule 4.5.04. 

19The $5 Strike Program is described within Rule 

4.5.01(f). 

20 If options on AAAU are eligible to participate 

in the Penny Interval Program, the minimum 

increment will be $0.01 below $3.00 and $0.50 

above $3.00. See also Rule 5.4(d), which governs 

the requirements for the Penny Interval Program. 

21 Given AAAU volume over the previous six 

months, the Exchange anticipates that, upon initial 

listing, AAAU options will fall into the position 

limit bucket of 75,000 contracts. 

secured by the delivery and 

maintenance of collateral consisting of 

cash or cash equivalents satisfactory to 

the issuer, as provided in the respective 

prospectus. The Exchange represents 

that, at minimum, AAAU satisfies Rule 

4.3.06(b)(2).9

AAAU will also be subject to the 

Exchange’s continued listing standards 

set forth in Rule 4.4.06 for ETFs deemed 

appropriate for options trading pursuant 

to Rule 4.3.06. Specifically, Rule 4.4.06 

provides that Units that were initially 

approved for options trading pursuant 

to Rule 4.3.06 shall be deemed not to 

meet the requirements for continued 

approval, and the Exchange shall not 

open for trading any additional series of 

option contracts of the class covering 

that such Units, if the Units cease to be 

an NMS stock or the Units are halted 

from trading in their primary market. 

Additionally, options on Units may be 

subject to the suspension of opening 

transactions in any of the following 

circumstances: (1) In the case of options 

covering Units approved for trading 

under Rule 4.3.06(b)(1), in accordance 

with the terms of paragraphs (a), (b), and 

(c) of Rule 4.4.01; (2) in the case of 

options covering Units approved for 

trading under Rule 4.3.06(b)(2), 

following the initial twelve-month 

period beginning upon the 

commencement of trading in the Units 

on a national securities exchange and 

are defined as an NMS stock, there are 

fewer than 50 record and/or beneficial 

holders of such Units for 30 or more 

consecutive trading days; (3) the value 

of the index or portfolio of securities, 

non-U.S. currency, or portfolio of 

commodities including commodity 

futures contracts, options on commodity 

futures contracts, swaps, forward 

contracts and/or options on physical 

commodities and/or Financial 

Instruments and Money Market 

Instruments on which the Units are 

based is no longer calculated or 

available; or (4) such other event shall 

occur or condition exist that in the 

opinion of the Exchange makes further 

dealing in such options on the Exchange 

inadvisable. 

AAAU options are physically settled 

contracts with American-style 

exercise.10 Consistent with current Rule 

4.5, 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 AAAU 11 and may also 

list series of options on AAAU for 

trading on a weekly 12 or quarterly 13

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

that expire from 12 to 180 months from 

the time they are listed.14

Pursuant to Rule 4.5.07, which 

governs strike prices of series of options 

on Units, the interval between strike 

prices for series of options on AAAU 

will be $1 or greater where the strike 

price is $200 or less and $5.00 or greater 

where the strike price is greater than 

$200.15

Additionally, the Exchange may list 

series of options pursuant to the $1 

Strike Price Interval Program,16 the 

$0.50 Strike Program,17 the $2.50 Strike 

Price Program,18 and the $5 Strike 

Program.19 Rule 5.4 governs the 

minimum increment for bids and offers 

for both equity and index options. 

Pursuant to Rule 5.4, where the price of 

a series of AAAU options 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 

$0.10.20 Any and all new series of 

AAAU options that the Exchange lists 

will be consistent and comply with the 

expirations, strike prices and minimum 

increments set forth in Rules 4.5 and 

5.4, as applicable. 

Position and exercise limits for 

options on ETFs, including options on 

AAAU, are determined pursuant to Rule 

8.30 and Rule 8.32, respectively. 

Position and exercise limits for ETF 

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, 

re-capitalizations, etc.) on the same side 

of the market.21 The Exchange further 

notes that Rule 10.3, 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 AAAU options. 

The Exchange represents that the 

same surveillance procedures applicable 

to all other options on other Units 

currently listed and traded on the 

Exchange will apply to options on 

AAAU, and that it has the necessary 

systems capacity to support the new 

option series. The Exchange believes 

that its existing surveillance and 

reporting safeguards are designed to 


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22 15 U.S.C. 78f(b). 

23 15 U.S.C. 78f(b)(5). 

24 Id. 

deter and detect possible manipulative 

behavior which might potentially arise 

from listing and trading ETF options, 

including AAAU options, as proposed. 

Also, the Exchange may obtain 

information from the CME Group New 

York Mercantile Exchange, Inc. 

(‘‘NYMEX’’) (a member of the 

Intermarket Surveillance Group) related 

to any financial instrument that is 

based, in whole or in part, upon an 

interest in or performance of gold. 

The Exchange has also analyzed its 

capacity and represents that it believes 

the Exchange and OPRA have the 

necessary systems capacity to handle 

the additional traffic associated with the 

listing of new series that may result 

from the introduction of options on 

AAAU up to the number of expirations 

currently permissible under the 

Exchange Rules. Because the proposal is 

limited to one class, the Exchange 

believes any additional traffic that may 

be generated from the introduction of 

AAAU options will be manageable. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.22 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 23 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 24 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

that the proposal to list and trade 

options on AAAU 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 AAAU will provide 

investors with greater opportunity to 

realize the benefits of utilizing options 

on a commodity-based ETF, including 

cost efficiencies and increased hedging 

strategies. The Exchange believes that 

offering options on a competitively 

priced gold-backed commodity ETF will 

benefit investors by providing them 

with an additional, relatively lower cost 

risk management tool allowing them to 

more easily manage their positions and 

associated risk in their portfolios in 

connection with exposure to the price of 

gold and with gold-related products and 

positions. Additionally, the Exchange’s 

offering of AAAU options will provide 

investors with the ability to transact in 

such options in a listed market 

environment as opposed to in the 

unregulated OTC options market; 

shifting liquidity from the OTC market 

onto the Exchange, thus increasing 

market transparency and enhancing the 

process of price discovery conducted on 

the Exchange through increased order 

flow to the benefit of all investors. The 

Exchange also notes that it already lists 

options on other gold-based ETFs, 

which, as described above, are trusts 

structured in substantially the same 

manner as AAAU and essentially offer 

the same objectives and benefits to 

investors, and for which the Exchange 

has not identified any issues with the 

continued listing and trading of the 

gold-backed ETF options it currently 

lists for trading. 

The Exchange also believes the 

proposed rule change will remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, because 

it is consistent with current Exchange 

Rules, previously filed with the 

Commission. Options on AAAU must 

satisfy the initial listing standards and 

continued listing standards currently in 

the Exchange Rules, applicable to 

options on all Units, including other 

gold-backed commodity ETFs already 

deemed appropriate for options trading 

on the Exchange. AAAU options will 

trade in the same manner as any other 

ETF [sic]—the same Exchange Rules 

that currently govern the listing and 

trading of all ETF options, including 

permissible expirations, strike prices 

and minimum increments, and 

applicable position and exercise limits 

and margin requirements, will govern 

the listing and trading of options on 

AAAU in the same manner. 

The Exchange represents that it has 

the necessary systems capacity to 

support the new ETF option series. The 

Exchange believes that its existing 

surveillance and reporting safeguards 

are designed to deter and detect possible 

manipulative behavior which might 

arise from listing and trading ETF 

options, including AAAU options. 

Finally, the Exchange believes that 

the proposed nonsubstantive rule 

change to simplify the rule language and 

update the names of certain ETFs in 

Rule 4.3.06(a)(4) will protect investors 

and the public interest by adding clarity 

to the Rule and making the Rule more 

accurate, thereby mitigating any 

potential investor confusion and making 

the Rule easier to understand. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

as AAAU satisfies initial listing 

standards set forth in the Exchange 

Rules and options on AAAU will be 

equally available to all market 

participants who wish to trade such 

options. The Exchange Rules currently 

applicable to the listing and trading of 

options on Units on the Exchange will 

apply in the same manner to the listing 

and trading of all options traded on 

AAAU. Also, and as stated above, the 

Exchange already lists options on other 

gold-based ETFs. 

The Exchange does not believe that 

the proposal to list and trade options on 

AAAU 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 the advent of AAAU options 

trading on the Exchange may make the 

Exchange a more attractive marketplace 

to market participants at other 

exchanges, 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 AAAU. Additionally, 

the Exchange notes that listing and 

trading AAAU options on the Exchange 

will subject such options to transparent 

exchange-based rules as well as price 

discovery and liquidity, as opposed to 

alternatively trading such options in the 

OTC market. 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 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 68 / Friday, April 8, 2022 / Notices 20905 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 AAAU 

options 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 gold prices and goldrelated products and positions on a 

listed options exchange. 

The Exchange does not believe that 

the proposed nonsubstantive rule 

change will impose any burden on 

intramarket or intermarket competition 

as the proposed rule change is not 

intended as a competitive change, but 

merely adds clarity to and provides for 

more accuracy within the Exchange 

Rules. The proposed rule change makes 

no substantive changes to the Exchange 

Rules, and thus will have no impact on 

trading on the Exchange. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or 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 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2022–009 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–CBOE–2022–009. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CBOE–2022–009 and 

should be submitted on or before April 

29, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07465 Filed 4–7–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94592; File No. SR– 

NASDAQ–2022–027] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Modify Certain Pricing Limitations for 

Companies Listing in Connection With 

a Direct Listing With a Capital Raise 

April 4, 2022. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on March 21, 

2022, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify 

certain pricing limitations for 

companies listing in connection with a 

Direct Listing with a Capital Raise in 

which the company will sell shares 

itself in the opening auction on the first 

day of trading on Nasdaq. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 


jspears on DSK121TN23PROD with NOTICES1