Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Notices 95833 

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

2 17 CFR 240.19d–1(c)(2). 

3 17 CFR 240.19d–1(c)(1). 

4The Commission adopted amendments to 

paragraph (c) of Rule 19d–1 to allow SROs to 

submit for Commission approval plans for the 

abbreviated reporting of minor disciplinary 

infractions. See Securities Exchange Act Release 

No. 21013 (June 1, 1984), 49 FR 23828 (June 8, 

1984). Any disciplinary action taken by an SRO 

against any person for violation of a rule of the SRO 

which has been designated as a minor rule violation 

pursuant to such a plan filed with and declared 

effective by the Commission shall not be considered 

‘‘final’’ for purposes of Section 19(d)(1) of the Act 

if the sanction imposed consists of a fine not 

exceeding $2,500 and the sanctioned person has not 

sought an adjudication, including a hearing, or 

otherwise exhausted his administrative remedies. 

5 17 CFR 240.19d–1(c)(2). 

6The Exchange received its grant of registration 

on December 20, 2018, which included approving 

the rules that govern the Exchange. The Exchange 

notes that certain chapters of the Exchange’s rules 

are incorporated by reference from the rules of the 

Exchange’s affiliate Miami International Securities 

Exchange, LLC (MIAX Options). Specifically, 

Chapter X, DISCIPLINE, which contains Rule 1014, 

Imposition of Fines for Minor Rule Violations. 

7While Rule 1014 allows the Exchange to 

administer fines up to $5,000, the Exchange is only 

seeking relief from the reporting requirements of 

paragraph (c)(1) of Rule 19d–1 for fines 

administered under Rule 1014(d) that do not exceed 

$2,500. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101759; File No. 4–845] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing of 

Proposed Minor Rule Violation Plan 

November 26, 2024. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19d–1(c)(2) 

thereunder,2 notice is hereby given that 

on November 19, 2024, MIAX Emerald, 

LLC (‘‘Emerald’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed minor rule violation plan 

(‘‘MRVP’’) with sanctions not exceeding 

$2,500 which would not be subject to 

the provisions of Rule 19d–1(c)(1) of the 

Act 3 requiring that a self-regulatory 

organization (‘‘SRO’’) promptly file 

notice with the Commission of any final 

disciplinary action taken with respect to 

any person or organization.4 In 

accordance with Rule 19d–1(c)(2) under 

the Act,5 the Exchange proposes to 

designate certain specified rule 

violations as minor rule violations, and 

requests that it be relieved of the prompt 

reporting requirements regarding such 

violations, provided it gives notice of 

such violations to the Commission on a 

quarterly basis. 

The Exchange proposes to include in 

its MRVP the procedures and violations 

currently included in Exchange Rule 

1014 (‘‘Imposition of Fines for Minor 

Rule Violations’’).6 According to the 

Exchange’s proposed MRVP, under Rule 

1014, the Exchange may impose a fine 

(not to exceed $2,500) on any Member, 

or person associated with or employed 

by a Member, for any rule violation 

listed in Rule 1014(d).7 The Exchange 

shall serve the person against whom a 

fine is imposed with a written statement 

setting forth the rule or rules allegedly 

violated, the act or omission 

constituting each such violation, the 

fine imposed for each violation, and the 

date by which such determination 

becomes final or by which such 

determination must be paid or 

contested. If the person against whom 

the fine is imposed pays the fine, such 

payment shall be deemed to be a waiver 

of such person’s right to a disciplinary 

proceeding and any review of the matter 

under the Exchange rules. Any person 

against whom a fine is imposed may 

contest the Exchange’s determination by 

filing with the Exchange a written 

answer, at which point the matter shall 

become a disciplinary proceeding. 

The Exchange proposes that, as set 

forth in Exchange Rule 1014(d), 

violations of the following rules would 

be appropriate for disposition under the 

MRVP: Rule 307 (Position Limits); Rule 

803 (Focus Reports); Rule 804 (Requests 

for Trade Data); Rule 520 (Order Entry); 

Rule 603 (Quotation Parameters); Rule 

605 (Execution of Orders in Appointed 

Options); Rule 314 (Mandatory Systems 

Testing); Rule 700 (Exercise of Option 

Contracts); Rule 309 (Exercise Limits); 

Rule 310 (Reports Related to Position 

Limits); Rule 403 (Trading in Restricted 

Classes); Rule 604 (Market Maker 

Quotations); Rule 1904 (Failure to 

Timely File Amendments to Form U4, 

Form U5, and Form BD); and Rules 

1701–1713 (Failure to Comply with the 

Consolidated Audit Trail Compliance 

Rule Under Chapter XVII). The 

Exchange states that it is specifically 

excluding Rule 1014(d)(4), Conduct and 

Decorum Policies, from this filing. 

Upon the Commission’s declaration of 

effectiveness of the MRVP, the Exchange 

will provide to the Commission a 

quarterly report for any actions taken on 

minor rule violations under the MRVP. 

The quarterly report will include: the 

disposition date, the name of the firm/ 

individual, the Exchange’s internal 

enforcement number, the review period, 

the nature of the violation type, the 

number of the rule that was violated, the 

number of instances the violation 

occurred, and the sanction imposed. 

Based on compliance with the above, 

the Exchange requests that the rule 

violations designated in Rule 1014(d) be 

designated as minor rule violations 

subject to a minor rule violation 

reporting plan and that the Exchange be 

relieved of the current reporting 

requirements regarding such violations. 

In addition, going forward, to the extent 

that there are any changes to the rules 

applicable to the Exchange’s MRVP, the 

Exchange requests that the Commission 

deem such changes to be modifications 

to the Exchange’s MRVP. 

I. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed MRVP 

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 No. 4–845 

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. 

4–845. 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 MRVP that 

are filed with the Commission, and all 

written communications relating to the 

proposed MRVP 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 proposed 

MRVP 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 


lotter on DSK11XQN23PROD with NOTICES1
95834 Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Notices 

8 15 U.S.C. 78s(d)(1); 17 CFR 240.19d–1(c)(2). 

9 17 CFR 200.30–3(a)(44). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 99306 

(January 10, 2024), 89 FR 3008, 3009 (January 17, 

2024) (SR–NYSEArca-2021–90; SR–NYSEArca– 

2023–44; SR–NYSEArca–2023–58; SR- NASDAQ– 

2023–016; SR–NASDAQ–2023–019; SR–CboeBZX– 

2023–028; SR–CboeBZX–2023–038; SR–CboeBZX– 

2023–040; SR–CboeBZX–2023–042; SRCboeBZX– 

2023–044; and SR–CboeBZX–2023–072) (Order 

Granting Accelerated Approval of Proposed Rule 

Changes, as Modified by Amendments Thereto, to 

List and Trade Bitcoin-Based Commodity-Based 

Trust Shares and Trust Units) (‘‘Bitcoin ETP 

Approval Order’’). 

4See proposed Rule 5020(h). 

5See Securities Exchange Act Release No. 101387 

(October 18, 2024), 89 FR 84948 (October 24, 2024) 

(Notice of Filing of Amendment Nos. 2 and 3 and 

Order Granting Accelerated Approval of a Proposed 

Rule Change, as Modified by Amendment Nos. 2 

and 3, to Permit the Listing and Trading of Options 

on Bitcoin Exchange-Traded Funds) (SR–CBOE– 

2024–035, as amended) (‘‘CBOE Approval Order’’). 

6See Rule 5020(h), which permits options trading 

on ETFs that are traded on a national securities 

exchange and are defined as an ‘‘NMS stock’’ in 

Rule 600 of Regulation NMS and that (i) represent 

interests in registered investment companies (or 

series thereof) organized as open-end management 

investment companies, unit investment trusts or 

similar entities that hold portfolios of securities 

and/or financial instruments, including, but not 

limited to, stock index futures contracts, options on 

futures, options on securities and indices, equity 

caps, collars and floors, swap agreements, forward 

contracts, repurchase agreements and reverse 

repurchase 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 broadbased 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); or (ii) represent interests in a trust 

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 or 

currencies and pays the beneficial owner interest 

and other distributions on the deposited non-U.S. 

currency or currencies, if any, declared and paid by 

the trust (‘‘Currency Trust Shares’’); or (iii) 

represent 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 

ETFs’’) or (iv) represent interests in the SPDR® Gold 

Trust, the iShares COMEX Gold Trust, the iShares 

Silver Trust, the abrdn Gold ETF Trust, the abrdn 

Silver ETF Trust, the abrdn Palladium ETF Trust, 

the abrdn Platinum ETF Trust, the Sprott Physical 

Gold Trust, the iShares Bitcoin Trust, the Grayscale 

Bitcoin Trust, the Grayscale Bitcoin Mini Trust or 

the Bitwise Bitcoin ETF; provided that all of the 

conditions in Rules 5020(h)(1) and (2) are met. 

to File No. 4–845 and should be 

submitted on or before December 24, 

2024. 

II. Date of Effectiveness of Proposed 

Minor Rule Violation Plan and Timing 

for Commission Action 

Pursuant to Section 19(d)(1) of the Act 

and Rule 19d–1(c)(2) thereunder,8 after 

December 24, 2024, the Commission 

may, by order, declare the Exchange’s 

proposed MRVP effective if the plan is 

consistent with the public interest, the 

protection of investors, or otherwise in 

furtherance of the purposes of the Act. 

The Commission in its order may 

restrict the categories of violations to be 

designated as minor rule violations and 

may impose any other terms or 

conditions to the proposed MRVP, File 

No. 4–845, and to the period of its 

effectiveness, which the Commission 

deems necessary or appropriate in the 

public interest, for the protection of 

investors or otherwise in furtherance of 

the purposes of the Act. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–28255 Filed 12–2–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101773; File No. SR–BOX– 

2024–29] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rules 3120 

(Position Limits) and 5020 (Criteria for 

Underlying Securities) To Permit 

Options Trading on Bitcoin Funds 

November 27, 2024. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on November 

25, 2024, BOX Exchange LLC 

(‘‘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 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 amend 

proposes to amend Rules 3120 (Position 

Limits), 5020 (Criteria for Underlying 

Securities), and 5055 (FLEX Equity 

Options). The text of the proposed rule 

change is available from the principal 

office of the Exchange, at the 

Commission’s Public Reference Room 

and also on the Exchange’s internet 

website at https://rules.

boxexchange.com/rulefilings. 

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 

Rules 3120 (Position Limits) and 5020 

(Criteria for Underlying Securities) to 

permit options trading on the Fidelity 

Wise Origin Bitcoin Fund (the ‘‘Fidelity 

Fund’’) and the ARK 21Shares Bitcoin 

ETF (the ‘‘ARK 21 Fund’’ and, with the 

Fidelity Fund, the ‘‘Bitcoin Funds’’).3

Additionally, the Exchange proposes to 

amend Rule 5055 (FLEX Equity 

Options). Specifically, the Exchange 

proposes to amend Rule 5020(h) to 

allow the Exchange to list and trade 

options on the Bitcoin Funds.4 This is 

a competitive filing that is based on a 

proposal recently submitted by Cboe 

Exchange, Inc. (‘‘CBOE’’) and approved 

by the Commission.5

As discussed herein and as provided 

in the CBOE Approval Order, the 

Exchange believes options on the 

Bitcoin Funds would permit hedging, 

and allow for more liquidity, better 

price efficiency, and less volatility with 

respect to the underlying Funds. 

Further, permitting the listing of such 

options would enhance the 

transparency and efficiency of markets 

in these and correlated products. Rule 

5020(h) provides that, subject to certain 

other criteria set forth in the Rule, 

securities deemed appropriate for 

options trading include ExchangeTraded Fund Shares (or ETFs), that 

represent certain types of interests 6 and 

exchange-traded products (‘‘ETPs’’) 


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