106654 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on December 2, 2024 (SR–CBOE–2024– 

054). On December 11, 2024, the Exchange 

withdrew that filing and submitted this proposal. 

traded product that will enhance 

competition among both market 

participants and listing venues, to the 

benefit of investors and the marketplace. 

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 within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the Exchange 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CboeBZX–2024–126 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–2024–126. 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–2024–126 and should be 

submitted on or before January 21, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–30915 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101983; File No. SR– 

CBOE–2024–055] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Update its Fees 

Schedule in Connection With the 

Exchange’s Plans To List and Trade 

Options That Overlie the Cboe Bitcoin 

U.S. ETF Index and the Cboe Mini 

Bitcoin U.S. ETF Index 

December 19, 2024. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on December 

11, 2024, Cboe Exchange, Inc. (the 

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

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III 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 

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

or ‘‘Cboe Options’’) proposes to update 

its Fees Schedule in connection with 

the Exchange’s plans to list and trade 

options that overlie the Cboe Bitcoin 

U.S. ETF Index and the Cboe Mini 

Bitcoin U.S. ETF Index. 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/ 

CBOELegalRegulatoryHome.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 its 

Fees Schedule in connection with its 

plans to list and trade options that 

overlie the Cboe Bitcoin U.S. ETF Index 

(‘‘CBTX options’’) and the Cboe Mini 

Bitcoin U.S. ETF Index (‘‘MBTX 

options’’).3 By way of background, the 

Cboe Bitcoin U.S. ETF Index is a 

modified market capitalizationweighted index that is designed to track 

the performance of a basket of spot 

Bitcoin ETFs listed on U.S. exchanges. 

CBTX options are cash-settled options 

based on the Cboe Bitcoin U.S. ETF 

Index. MBTX options are cash-settled 

options on the Cboe Mini Bitcoin U.S. 

ETF Index, which is a reduced value 

index based on 1/10th the value of the 

Cboe Bitcoin U.S. ETF Index. 

The Exchange proposes to amend its 

Fees Schedule to accommodate the 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106655 

4Underlying Symbol List A includes OEX, XEO, 

RUT, RLG, RLV, RUI, UKXM, SPX (includes 

SPXW), SPESG and VIX. See Exchange Fees 

Schedule, Footnote 34. 

5Under the proposed changes, the Customer 

Large Trade Discount Program, set forth in the 

Exchange Fees Schedule, will apply to Customer 

orders in CBTX and MBTX (included in ‘‘Other 

Index Options’’ under the program). Under the 

program, a customer large trade discount program 

in the form of a cap on customer (‘‘C’’ capacity 

code) transaction fees is in effect for the options set 

forth in the Customer Large Trade Discount table. 

For CBTX and MBTX options, regular customer 

transaction fees will only be charged for up to 5,000 

contracts per order, similar to other index options 

other than VIX, SPX/SPXW, SPESG, and XSP. 

6The FLEX Surcharge Fee will only be charged 

up to the first 2,500 contracts per trade. See 

Exchange Fees Schedule, Footnote 17. 

planned listing and trading of CBTX and 

MBTX options. 

Standard Transaction Rates and 

Surcharges 

First, the Exchange proposes to adopt 

certain standard transaction fees in 

connection with CBTX and MBTX 

options. Specifically, the proposed rule 

change adopts certain fees for CBTX and 

MBTX options in the Rate Table for All 

Products Excluding Underlying Symbol 

A,4 as follows: 

• Adopts fee code B1, appended to all 

Customer (capacity ‘‘C’’) orders in CBTX 

options and assesses a fee of $0.50 per 

contract; 5

• Adopts fee code B2, which is 

appended to all non-Customer (i.e., 

Clearing Trading Permit Holders 

(capacity ‘‘F’’), Non-Clearing Trading 

Permit Holder Affiliates (capacity ‘‘L’’), 

Market-Maker (capacity ‘‘M’’), BrokerDealers (capacity ‘‘B’’), Joint BackOffices (capacity ‘‘J’’), Non-Trading 

Permit Holder Market-Makers (capacity 

‘‘N’’), and Professionals (capacity ‘‘U’’)) 

orders in CBTX options and assesses a 

fee of $1.00 per contract; 

• Adopts fee code M1, appended to 

all Customer (capacity ‘‘C’’) orders in 

MBTX options and assesses a fee of 

$0.25 per contract; and 

• Adopts fee code M2, which is 

appended to all non-Customer (i.e., 

Clearing Trading Permit Holders 

(capacity ‘‘F’’), Non-Clearing Trading 

Permit Holder Affiliates (capacity ‘‘L’’), 

Market-Maker (capacity ‘‘M’’), BrokerDealers (capacity ‘‘B’’), Joint BackOffices (capacity ‘‘J’’), Non-Trading 

Permit Holder Market-Makers (capacity 

‘‘N’’), and Professionals (capacity ‘‘U’’)) 

orders in MBTX options and assesses a 

fee of $0.50 per contract. 

In addition to the above transaction 

fees, the proposed rule change also 

adopts a surcharge to CBTX and MBTX 

options transactions within the Rate 

Table—All Products Excluding 

Underlying Symbol List A. Specifically, 

the proposed rule change adds CBTX 

and MBTX options to the list of options 

for which the FLEX Surcharge Fee of 

$0.10 (capped at $250 per trade) applies 

to electronic FLEX orders executed by 

all capacity codes, except for Cboe 

Compression Services (‘‘CCS’’) and 

FLEX Micro transactions.6

The Exchange also proposes to 

exclude non-Customer complex orders 

in CBTX and MBTX from the Complex 

Surcharge by amending Footnote 35 

(appended to the Complex Surcharge) to 

provide that the Complex Surcharge 

applies per contract per side surcharge 

for noncustomer complex order 

executions that remove liquidity from 

the Complex Order Book (‘‘COB’’) and 

auction responses in the Complex Order 

Auction (‘‘COA’’) and AIM in all classes 

except CBTX, MBTX, MRUT, NANOS, 

XSP, FLEX Micros, Sector Indexes and 

Underlying Symbol List A. 

Fees Programs 

The Exchange proposes to exclude 

CBTX and MBTX options from the 

Liquidity Provider Sliding Scale, which 

offers credits on Market-Maker orders 

where a Market-Maker achieves certain 

volume thresholds based on total 

national Market-Maker volume in all 

underlying symbols, excluding 

Underlying Symbol List A, MRUT, 

MXACW, MXUSA, MXWLD, NANOS, 

XSP and FLEX Micros during the 

calendar month. Specifically, the 

proposed rule change updates the 

Liquidity Provider Sliding Scale table to 

provide that volume thresholds are 

based on total national Market-Maker 

volume in all underlying symbols 

excluding Underlying Symbol List A, 

CBTX, MBTX, MRUT, MXACW, 

MXUSA, MXWLD, NANOS, XSP and 

FLEX Micros during the calendar 

month, and that it applies in all 

underlying symbols excluding 

Underlying Symbol List A, CBTX, 

MBTX, MRUT, MXACW, MXUSA, 

MXWLD, NANOS, XSP and FLEX 

Micros. The proposed rule change also 

updates Footnote 10 (appended to the 

Liquidity Provider Sliding Scale) to 

provide that the Liquidity Provider 

Sliding Scale applies to Liquidity 

Provider (Exchange Market-Maker, DPM 

and LMM) transaction fees in all 

products except (1) Underlying Symbol 

List A, CBTX, MBTX, MRUT, MXACW, 

MXUSA, MXWLD, NANOS, XSP and 

FLEX Micros, (2) volume executed in 

open outcry, and (3) volume executed 

via AIM Responses. 

The proposed rule change also 

updates Footnote 44 (appended to the 

Liquidity Provider Sliding Scale 

Adjustment Table) to exclude CBTX and 

MBTX volume from the program by 

providing (in relevant part) that the 

Make Rate under the Liquidity Provider 

Sliding Scale Adjustment Table be 

derived from a Liquidity Provider’s 

electronic volume the previous month 

in all symbols excluding Underlying 

Symbol List A, CBTX, MBTX, and XSP. 

The proposed rule change updates the 

Volume Incentive Program (‘‘VIP’’) table 

to also exclude CBTX and MBTX 

volume from the VIP, which currently 

offers a per contract credit for certain 

percentage threshold levels of monthly 

Customer volume in all underlying 

symbols, excluding Underlying Symbol 

List A, Sector Indexes, DJX, MRUT, 

MXEA, MXEF, MXACW, MXUSA, 

MXWLD, NANOS, XSP and FLEX 

Micros. The proposed rule change also 

amends Footnote 36 (appended to the 

VIP table) to reflect the proposed 

exclusion of CBTX and MBTX from the 

VIP by providing (in relevant part) that: 

the Exchange shall credit each TPH the 

per contract amount resulting from each 

public customer (‘‘C’’ capacity code) 

order transmitted by that TPH which is 

executed electronically on the Exchange 

in all underlying symbols excluding 

Underlying Symbol List A, Sector 

Indexes, DJX, CBTX, MBTX, MRUT, 

MXEA, MXEF, MXACW, MXUSA, 

MXWLD, NANOS, XSP, FLEX Micros, 

QCC trades, public customer to public 

customer electronic complex order 

executions, and executions related to 

contracts that are routed to one or more 

exchanges in connection with the 

Options Order Protection and Locked/ 

Crossed Market Plan referenced in Rule 

5.67, provided the Trading Permit 

Holder (‘‘TPH’’) meets certain 

percentage thresholds in a month as 

described in the Volume Incentive 

Program (VIP) table; the percentage 

thresholds are calculated based on the 

percentage of national customer volume 

in all underlying symbols excluding 

Underlying Symbol List A, Sector 

Indexes, CBTX, MBTX, MRUT, 

MXACW, MXEA, MXEF, MXUSA, 

MXWLD, NANOS, DJX, XSP, and FLEX 

Micros entered and executed over the 

course of the month; and in the event 

of a Cboe Options System outage or 

other interruption of electronic trading 

on Cboe Options, the Exchange will 

adjust the national customer volume in 

all underlying symbols excluding 

Underlying Symbol List A, Sector 

Indexes, CBTX, MBTX, MRUT, 

MXACW, MXEA, MXEF, MXUSA, 

MXWLD, NANOS, DJX, XSP, and FLEX 

Micros for the entire trading day. 

The proposed rule change excludes 

CBTX and MBTX options from the list 

of products eligible to receive Break-Up 

Credits in orders executed in AIM, 


ddrumheller on DSK120RN23PROD with NOTICES1
106656 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

7See Exchange Rule 3.55(a). In advance of the 

LMM Incentive Program effective date, the 

Exchange will send a notice to solicit applications 

from interested TPHs for the LMM role and will, 

from among those applications, select the program 

LMMs. Factors to be considered by the Exchange in 

selecting LMMs include adequacy of capital, 

experience in trading options, presence in the 

trading crowd, adherence to Exchange rules and 

ability to meet the obligations specified in Rule 

5.55. 

SAM, FLEX AIM, and FLEX SAM, by 

amending the Break-Up Credits table to 

exclude CBTX and MBTX along with 

the products currently excluded— 

Underlying Symbol List A, Sector 

Indexes, DJX, MRUT, MXEA, MXEF, 

MXACW, MXUSA, MXWLD, NANOS, 

XSP and FLEX Micros. 

The Exchange proposes to exclude 

CBTX and MBTX options from the 

Marketing Fee Program by updating the 

Marketing Fee table to provide that the 

marketing fee will be assessed on 

transactions of Market-Makers 

(including DPMs and LMMs), resulting 

from customer orders at the per contract 

rate provided above on all classes of 

equity options, options on ETFs, options 

on ETNs and index options, except that 

the marketing fee shall not apply to 

Sector Indexes, DJX, CBTX, MBTX, 

MRUT, MXEA, MXEF, MXACW, 

MXUSA, MXWLD, XSP, NANOS, FLEX 

Micros or Underlying Symbol List A. 

The Exchange notes that, in this way, 

CBTX and MBTX options will be treated 

as most of the Exchange’s other 

exclusively listed products that are 

currently excluded from the Marketing 

Fee Program. The Exchange does believe 

that it is necessary at the point of newly 

listing and trading for CBTX and MBTX 

options to be eligible for the Marketing 

Fee Program and may determine in the 

future to submit a fee filing to add CBTX 

and MBTX to the Marketing Fee 

Program if the Exchange believes it 

would potentially generate more 

customer order flow in CBTX and 

MBTX options. 

The Exchange proposes to exclude 

CBTX and MBTX options from the Floor 

Broker Sliding Scale Rebate Program, 

which offers rebates for Firm Facilitated 

and non-Firm Facilitated orders that 

correspond to certain volume tiers and 

is designed to incentivize order flow in 

multiply listed options to the 

Exchange’s trading floor. The Exchange 

proposes to update the Floor Broker 

Sliding Scale Rebate Program to provide 

that the Floor Broker Sliding Scale 

Rebate Program applies to all products 

except Underlying Symbol List A, 

Sector Indexes, DJX, CBTX, MBTX, 

MRUT, MXEA, MXEF, MXACW, 

MXUSA, MXWLD, NANOS, XSP and 

FLEX Micros. 

The Exchange next proposes to 

exclude CBTX and MBTX options from 

eligibility for the Order Router Subsidy 

(‘‘ORS’’) and Complex Order Router 

Subsidy (‘‘CORS’’) Programs, in which 

Participating TPHs or Participating NonCboe TPHs may receive a payment from 

the Exchange for every executed 

contract routed to the Exchange through 

their system in certain classes. 

Specifically, the proposed rule change 

updates the ORS/CORS Program tables 

to provide that ORS/CORS participants 

whose total aggregate non-customer 

ORS and CORS volume is greater than 

0.25% of the total national volume 

(excluding volume in options classes 

included in Underlying Symbol List A, 

Sector Indexes, DJX, CBTX, MBTX, 

MRUT, MXEA, MXEF, MXACW, 

MXUSA, MXWLD, NANOS, XSP or 

FLEX Micros) will receive an additional 

payment for all executed contracts 

exceeding that threshold during a 

calendar month. The proposed rule 

change also updates Footnote 29 

(appended to the ORS Program table) to 

provide that Cboe Options does not 

make payments under the program with 

respect to executed contracts in options 

classes included in Underlying Symbols 

List A, Sector Indexes, DJX, CBTX, 

MBTX, MRUT, MXEA, MXEF, MXACW, 

MXUSA, MXWLD, NANOS, XSP or 

FLEX Micros or with respect to complex 

orders or spread orders; and updates 

Footnote 30 (appended to the CORS 

Program table) to provide that Cboe 

Options does not make payments under 

the program with respect to executed 

contracts in options classes included in 

Underlying Symbols List A, Sector 

Indexes, DJX, CBTX, MBTX, MRUT, 

MXEA, MXEF, MXACW, MXUSA, 

MXWLD, NANOS, XSP or FLEX Micros. 

The Exchange also proposes to amend 

Footnote 6, which states that in the 

event of an Exchange System outage or 

other interruption of electronic trading 

on the Exchange that lasts longer than 

60 minutes, the Exchange will adjust the 

national volume in all underlying 

symbols excluding Underlying Symbol 

List A, Sector Indexes, MRUT, MXEA, 

MXEF, MXACW, MXUSA, MXWLD, 

NANOS, DJX, XSP and FLEX Micros for 

the entire trading day. The Exchange 

proposes to add CBTX and MBTX 

options to the list of options. 

The Exchange also proposes to 

exclude Firm (i.e., Clearing Trading 

Permit Holders (capacity ‘‘F’’) and NonClearing Trading Permit Holder 

Affiliates (capacity ‘‘L’’)) transactions in 

CBTX and MBTX from the Clearing TPH 

Fee Cap. Specifically, it amends 

footnote 22 (appended to the Clearing 

TPH Fee Cap table) to provide that all 

non-facilitation business executed in 

AIM or open outcry, or as a QCC or 

FLEX transaction, transaction fees for 

Clearing TPH Proprietary and/or their 

Non-TPH Affiliates in all products 

except CBTX, MBTX, MRUT, NANOS, 

XSP, FLEX Micros, Sector Indexes and 

Underlying Symbol List A, in the 

aggregate, are capped at $65,000 per 

month per Clearing TPH. The proposed 

rule change additionally updates 

Footnote 11 (which is also appended to 

the Clearing TPH Fee Cap table) to 

provide that the Clearing TPH Fee Cap 

in all products except CBTX, MBTX, 

MRUT, NANOS, XSP, FLEX Micros, 

Underlying Symbol List A and Sector 

Indexes (the ‘‘Fee Cap’’), the Cboe 

Options Proprietary Products Sliding 

Scale for Clearing TPH Proprietary 

Orders, and the Clearing TPH 

Proprietary VIX Sliding Scale apply to 

(i) Clearing TPH proprietary orders (‘‘F’’ 

capacity code), and (ii) orders of NonTPH Affiliates of a Clearing TPH. 

LMM Incentive Programs 

Finally, the Exchange proposes to 

adopt financial programs in connection 

with CBTX and MBTX options for 

LMMs appointed to the programs 

(collectively, the ‘‘LMM Incentive 

Programs’’).7 Each LMM Incentive 

Program provides a rebate to TPHs with 

LMM appointments to the respective 

incentive program that meet certain 

quoting standards in the applicable 

series in a month. The Exchange notes 

that meeting or exceeding the quoting 

standards (as proposed; described in 

further detail below) in each of the 

LMM Incentive Program products to 

receive the applicable rebate (as 

proposed; described in further detail 

below) is optional for an LMM 

appointed to a program. Rather, an 

LMM appointed to an incentive program 

is eligible to receive the corresponding 

rebate if it satisfies the applicable 

quoting standards, which the Exchange 

believes encourages the LMM to provide 

liquidity in the applicable class and 

trading session. The Exchange may 

consider other exceptions to the 

programs’ quoting standards based on 

demonstrated legal or regulatory 

requirements or other mitigating 

circumstances. In calculating whether 

an LMM appointed to an incentive 

program meets the applicable program’s 

quoting standards each month, the 

Exchange excludes from the calculation 

in that month the business day in which 

the LMM missed meeting or exceeding 

the quoting standards in the highest 

number of the applicable series. 

The Exchange notes that it currently 

offers several LMM Incentive Programs 

for other proprietary Exchange products. 

The proposed heightened quoting 

standards are similar to the detail and 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106657 

8See Exchange Fees Schedule, ‘‘MRUT LMM 

Incentive Program’’, ‘‘MSCI LMM Incentive 

Program’’, ‘‘MXACW LMM Incentive Program’’, 

‘‘MXUSA LMM Incentive Program’’, ‘‘MXWLD 

LMM Incentive Program’’, ‘‘NANOS LMM Incentive 

Program’’, ‘‘GTH VIX/VIXW LMM Incentive 

Program’’, ‘‘GTH1 SPX/SPXW LMM Incentive 

Program’’, ‘‘GTH2 SPX/SPXW LMM Incentive 

Program’’, ‘‘RTH XSP LMM Incentive Program’’, 

‘‘GTH1 XSP LMM Incentive Program’’, ‘‘GTH2 XSP 

LMM Incentive Program’’, and ‘‘RTH SPESG LMM 

Incentive Program’’. 

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

10 15 U.S.C. 78f(b)(5). 

format (corresponding premiums, quote 

widths, and sizes) of the quoting 

standards currently in place for LMM 

Incentive Programs for other proprietary 

Exchange products,8 and, similar to the 

LMM Incentive Programs with respect 

to other propriety [sic] Exchange 

products, the heightened quoting 

requirements offered by each of the 

proposed LMM Incentive Programs are 

designed to incentivize LMMs 

appointed to the LMM Incentive 

Programs to provide liquidity in CBTX 

and MBTX options during the trading 

day upon their listing and trading on the 

Exchange and thereafter, which, in turn, 

would provide greater trading 

opportunities, added market 

transparency and enhanced price 

discovery for all market participants in 

CBTX and MBTX options. 

The Exchange first proposes to adopt 

a MBTX/MBTXW LMM Incentive 

Program (‘‘MBTX LMM Incentive 

Program’’). As proposed, the MBTX 

LMM Incentive Program provides that if 

an LMM appointed to the MBTX LMM 

Incentive Program provides continuous 

electronic quotes during Regular 

Trading Hours (‘‘RTH’’) that meet or 

exceed the proposed heightened quoting 

standards (below) in at least 85% of 

MBTX series 85% of the time in a given 

month, the LMM will receive (i) a 

payment for that month in the amount 

of $10,000 (or pro-rated amount if an 

appointment begins after the first 

trading day of the month or ends prior 

to the last trading day of the month) for 

that month and (ii) a credit of $0.25/ 

contract applied to all MBTX contracts 

executed in Market-Maker capacity 

during RTH. 

6 days or 

less 

7 days to 

14 days 

15 days to 

60 days 

61 to 

120 days 

121 to 270 days 

Width Size Width Size Width Size Width Size Width Size 

$0.00–$5.00 ............. $0.15 20 $0.20 15 $0.25 10 $0.30 5 $0.80 5 

$5.01–$15.00 ........... 0.50 20 0.35 15 0.40 10 0.50 5 1.00 5 

$15.01–$20.00 ......... 1.00 5 1.50 5 0.50 10 0.50 5 2.00 3 

$20.01–$50.00 ......... 1.20 5 3.00 5 4.00 5 1.00 5 5.00 3 

$50.01–$100.00 ....... 5.00 1 8.00 1 8.00 1 8.00 1 8.00 3 

$100.01–$200.00 ..... 8.00 1 10.00 1 12.00 1 12.00 1 14.00 1 

Greater than $200.00 10.00 1 12.00 1 14.00 1 14.00 1 16.00 1 

The Exchange next proposes to adopt 

a CBTX/CBTXW LMM Incentive 

Program (‘‘CBTX LMM Incentive 

Program’’). As proposed, the CBTX 

LMM Incentive Program provides that if 

an LMM appointed to the CBTX LMM 

Incentive Program provides continuous 

electronic quotes during RTH that meet 

or exceed the proposed heightened 

quoting standards (below) in at least 

85% of CBTX series 85% of the time in 

a given month, the LMM will receive (i) 

a payment for that month in the amount 

of $10,000 (or pro-rated amount if an 

appointment begins after the first 

trading day of the month or ends prior 

to the last trading day of the month) and 

(ii) a credit of $0.50/contract applied to 

all CBTX contracts executed in MarketMaker capacity during RTH. 

6 days or 

less 

7 days to 

14 days 

15 days to 

60 days 

61 to 

120 days 

121 to 270 days 

Width Size Width Size Width Size Width Size Width Size 

$0.00–$5.00 ............. $0.40 10 $0.60 10 $1.00 10 $1.00 5 $2.00 5 

$5.01–$15.00 ........... 0.80 10 1.50 10 1.50 10 1.50 5 3.00 5 

$15.01–$20.00 ......... 2.00 5 3.00 5 3.50 5 3.50 5 5.00 5 

$20.01–$50.00 ......... 4.00 5 5.00 5 5.00 5 5.00 5 8.00 3 

$50.01–$100.00 ....... 6.00 5 8.00 5 8.00 5 8.00 5 12.00 3 

$100.01–$200.00 ..... 12.00 1 12.00 1 12.00 1 12.00 3 12.00 1 

Greater than $200.00 16.00 1 16.00 1 16.00 1 16.00 1 18.00 1 

The heightened quoting requirements 

offered by the CBTX and MBTX LMM 

Incentive Programs are designed to 

incentivize LMMs appointed to the 

LMM Incentive Programs to provide 

significant liquidity in CBTX and MBTX 

options during the trading day upon 

their listing and trading on the 

Exchange, which, in turn, would 

provide greater trading opportunities, 

added market transparency and 

enhanced price discovery for all market 

participants in CBTX and MBTX 

options. 

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.9 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 10 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. 


ddrumheller on DSK120RN23PROD with NOTICES1
106658 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

11 Id. 

12 15 U.S.C. 78f(b)(4). 

13See CME Fees Schedule, Bitcoin Futures & 

Options, Micro Bitcoin Futures & Options. 

14See Exchange Fees Schedule, Liquidity 

Provider Sliding Scale, Volume Incentive Program, 

Break-Up Credits, Marketing Fee, Floor Broker 

Sliding Scale Rebate Program, Order Router 

Subsidy Program and Complex Order Router 

Subsidy Program. 

15See Exchange Fees Schedule, ‘‘MRUT LMM 

Incentive Program’’, ‘‘MSCI LMM Incentive 

Program’’, ‘‘MXACW LMM Incentive Program’’, 

‘‘MXUSA LMM Incentive Program’’, ‘‘MXWLD 

LMM Incentive Program’’, ‘‘NANOS LMM Incentive 

Program’’, ‘‘GTH VIX/VIXW LMM Incentive 

Program’’, ‘‘GTH1 SPX/SPXW LMM Incentive 

Program’’, ‘‘GTH2 SPX/SPXW LMM Incentive 

Program’’, ‘‘RTH XSP LMM Incentive Program’’, 

‘‘GTH1 XSP LMM Incentive Program’’, ‘‘GTH2 XSP 

LMM Incentive Program’’, and ‘‘RTH SPESG LMM 

Incentive Program’’. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 11 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange also believes the 

proposed rule change is consistent with 

Section 6(b)(4) of the Act,12 which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

TPHs and other persons using its 

facilities. 

Standard Transaction Rates and 

Surcharges 

The Exchange believes that the 

proposed amendments to the Fees 

Schedule in connection with standard 

transaction rates and surcharges for 

CBTX and MBTX options transactions 

are reasonable, equitable and not 

unfairly discriminatory. The Exchange 

believes that the proposed standard 

transaction rates for Customer and nonCustomer orders in CBTX and MBTX 

options are reasonable. Specifically, the 

proposed fees are in line with or less 

than fees for transactions in similar 

industry products, 13 when taking into 

account adjustments for notional size 

differences, based on the spot value of 

the underlying index of CBTX and 

MBTX options as compared to the spot 

value of other similar industry products 

and considering the difference in 

multipliers among the various products. 

Additionally, the Exchange believes it 

is reasonable to charge different fee 

amounts to different user types in the 

manner proposed because the proposed 

fees are consistent with the price 

differentiation that exists today for other 

index products. Moreover, the Exchange 

believes that it is reasonable to assess 

lower fees for MBTX options orders (as 

compared to CBTX options orders), 

because of the relation between MBTX 

options and CBTX options, wherein 

MBTX options overlie an index with 1/ 

10th the value of the index that 

underlies CBTX options. 

The Exchange believes it is reasonable 

to apply the FLEX Surcharge Fee to 

CBTX and MBTX options, as the FLEX 

Surcharge Fee assists the Exchange in 

recouping the cost of developing and 

maintaining the FLEX system. 

Moreover, the Exchange believes it is 

reasonable to exclude CBTX and MBTX 

options from the Complex Surcharge 

because the proposed surcharge 

exclusions will provide consistency 

between the fees assessed for orders in 

other proprietary products, including 

MRUT, NANOS, XSP, FLEX Micros, 

Sector Indexes and Underlying Symbol 

List A. 

The Exchange believes the proposed 

standard transaction rates and exclusion 

from certain surcharges are equitable 

and not unfairly discriminatory because 

they will apply automatically and 

uniformly to all capacities as applicable 

(i.e., Customer and non-Customer), in 

CBTX and MBTX options. The 

Exchange also believes that it is 

equitable and not unfairly 

discriminatory to assess lower fees to 

Customers as compared to other market 

participants because Customer order 

flow enhances liquidity on the 

Exchange for the benefit of all market 

participants. Specifically, Customer 

liquidity benefits all market participants 

by providing more trading 

opportunities, which attracts MarketMakers. An increase in the activity of 

these market participants in turn 

facilitates tighter spreads, which may 

cause an additional corresponding 

increase in order flow from other market 

participants. The fees offered to 

Customers are intended to attract more 

Customer trading volume to the 

Exchange. Moreover, the options 

industry has a long history of providing 

preferential pricing to Customers, and 

the Exchange’s current Fees Schedule 

currently does so in many places, as do 

the fees structures of many other 

exchanges. Finally, all fee amounts 

listed as applying to Customers will be 

applied equally to all Customers 

(meaning that all Customers will be 

assessed the same amount). 

Fees Programs 

The Exchange believes that the 

proposed updates to the Fees Schedule 

in connection with the application of 

certain fees programs to transactions in 

CBTX and MBTX options are 

reasonable, equitable and not unfairly 

discriminatory. The Exchange believes 

it is reasonable to exclude CBTX and 

MBTX options from the Liquidity 

Provider Sliding Scale, the VIP, BreakUp Credits applicable to Customer 

Agency Orders in AIM and SAM, the 

Marketing Fee, the Floor Broker Sliding 

Scale Rebate Program, and the ORS/ 

CORS program because other 

proprietary index products are also 

excepted from these programs.14

Moreover, the Exchange notes that the 

proposed rule change does not alter any 

of the existing programs, but instead, 

merely proposes not to include 

transactions in CBTX and MBTX 

options in those programs. 

The Exchange believes that excluding 

CBTX and MBTX options transactions 

from certain fees programs is equitable 

and not unfairly discriminatory because 

the programs will equally not apply to, 

or exclude in the same manner, all 

market participants’ orders in CBTX and 

MBTX options. The Exchange notes that 

the proposed rule change does not alter 

any of the existing program rates or 

volume calculations, but instead, merely 

proposes to include (or not to) include 

transactions in CBTX and MBTX 

options in those programs and volume 

calculations in the same way that 

transactions in proprietary index 

products are (or are not) currently 

included. 

LMM Incentive Programs 

The Exchange believes the proposed 

LMM Incentive Programs are 

reasonable, equitable and not unfairly 

discriminatory. Particularly, the 

proposed CBTX and MBTX LMM 

Incentive Programs are reasonable 

financial incentive programs because 

the proposed heightened quoting 

standards and rebate amount for 

meeting the heightened quoting 

standards in each CBTX and MBTX 

series, as applicable, are reasonably 

designed to incentivize LMMs 

appointed to the Programs to meet the 

proposed heightened quoting standards 

during RTH for CBTX and MBTX, as 

applicable, thereby providing liquid and 

active markets, which facilitates tighter 

spreads, increased trading 

opportunities, and overall enhanced 

market quality to the benefit of all 

market participants, particularly in 

newly listed and traded products on the 

Exchange during the trading day. 

The Exchange believes that the 

proposed heightened quoting standards 

are reasonable because they are similar 

to the detail and format (corresponding 

premiums, quote widths, and sizes) of 

the quoting standards currently in place 

for LMM Incentive Programs for other 

proprietary Exchange products.15 The 

Exchange believes the proposed 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106659 

16See, for example, Securities Exchange Act 

Release No. 96510 (December 15, 2022), 87 FR 

78150 (December 21, 2022) (SR–CBOE–2022–061), 

wherein the Exchange adopted an additional per 

contract credit for Market-Maker XSP orders 

executed in RTH, as part of its GTH1 XSP LMM 

Incentive Program. 

17 Id. 

heightened quoting standards for the 

CBTX and MBTX LMM Incentive 

Programs reasonably reflect what the 

Exchange believes will be typical 

market characteristics in CBTX and 

MBTX options, given their relative spot 

value, notional value and general 

anticipated retail base. 

Further, the Exchange believes the 

proposed percentage of the series (85% 

of each series) in which an LMM must 

meet the proposed heightened quoting 

requirements is reasonable given the 

new market ecosystem for CBTX and 

MBTX options. Because the CBTX/ 

MBTX market is still new and not yet 

as robust as that of other products, such 

as SPX/SPXW, it may pose more 

difficulty for LMMs in CBTX and MBTX 

options to offset risk and hedge, thus 

more difficulty in achieving the 

heightened quoting requirement. 

Therefore, the Exchange believes the 

proposed percentage of the series is 

reasonably commensurate with the 

potentially higher risk, and challenge in 

achieving the heightened quoting 

requirements, LMMs would have to take 

on in the new CBTX/MBTX market. The 

Exchange notes that the percentage of 

the series in place under the LMM 

Programs for MXACW and MXUSA 

options (90% of series and 85% of 

series, respectively), which are 

comparable in terms of potentially 

higher risk and challenge in achieving 

heightened quoting requirements, are 

tailored in a similar manner. 

The Exchange further believes that the 

proposed rebate amounts received for 

CBTX ($10,000) and MBTX ($10,000) 

options are reasonable because they are 

comparable to the rebates offered by 

other LMM Incentive Programs offered 

by the Exchange. For example, the LMM 

Programs for MXACW and MXUSA 

options, which are comparable in terms 

of potentially higher risk and challenge 

in achieving heightened quoting 

requirements, each currently offer 

$10,000 per class, per month to 

appointed LMMs for MXACW and 

MXUSA options if the heightened 

quoting standards are met in a given 

month. The Exchange believes that the 

proposed rebate amounts are reasonably 

designed to continue to incentivize an 

LMM appointed to the respective 

program to meet the applicable quoting 

standards for CBTX and MBTX options, 

thereby providing liquid and active 

markets, which facilitates tighter 

spreads, increased trading 

opportunities, and overall enhanced 

market quality to the benefit of all 

market participants. 

Similarly, the Exchange believes that 

the additional per contract credits for 

Market-Maker CBTX and MBTX options 

orders executed in RTH offered by the 

LMM Incentive Programs are reasonable 

and equitable as LMM Incentive 

Programs for other products have, in the 

past, offered similar additional per 

contract credits.16 All appointed LMMs 

are eligible for the additional per 

contract credits, which is designed to 

incentivize LMMs in these newly listed 

products to provide liquid and active 

markets in these products to encourage 

their growth. 

Finally, the Exchange believes it is 

equitable and not unfairly 

discriminatory to offer the financial 

incentive to LMMs appointed to the 

LMM Incentive Programs, because it 

will benefit all market participants 

trading in CBTX and MBTX during RTH 

by encouraging the appointed LMMs to 

satisfy the heightened quoting 

standards, which incentivizes 

continuous increased liquidity and 

thereby may provide more trading 

opportunities and tighter spreads. 

Indeed, the Exchange notes that these 

LMMs serve a crucial role in providing 

quotes and the opportunity for market 

participants to trade CBTX and MBTX, 

which can lead to increased volume, 

providing for robust markets. The 

Exchange ultimately proposes to offer 

the CBTX and MBTX LMM Incentive 

Programs to sufficiently incentivize the 

appointed LMMs to provide key 

liquidity and active markets in the 

newly listed and traded CBTX and 

MBTX options during the trading day to 

encourage liquidity, thereby protecting 

investors and the public interest. The 

Exchange also notes that an LMM 

appointed to the LMM Incentive 

Programs may undertake added costs 

each month to satisfy heightened 

quoting standards (e.g., having to 

purchase additional logical 

connectivity). The Exchange believes 

the proposed programs are equitable 

and not unfairly discriminatory because 

similar programs currently exist for 

LMMs appointed to programs in other 

proprietary products,17 and the 

proposed programs will equally apply to 

any TPH that is appointed as an LMM 

to the each of the LMM Incentive 

Programs, as applicable. Additionally, if 

an appointed LMM does not satisfy the 

heightened quoting standards in CBTX 

and MBTX (as applicable) for any given 

month, then it simply will not receive 

the offered payment for that month. 

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 

because the proposed CBTX and MBTX 

transaction fees for the separate types of 

market participants will be assessed 

automatically and uniformly to all such 

market participants, i.e., all qualifying 

Customer orders in CBTX and MBTX 

options will be assessed the same 

amount and all qualifying non-Customer 

orders in CBTX and MBTX will be 

assessed the same amount. As discussed 

above, while different fees are assessed 

to different market participants in some 

circumstances, these different market 

participants have different obligations 

and different circumstances as 

discussed above. For example, 

preferential pricing to Customers is a 

long-standing options industry practice 

which serves to enhance Customer order 

flow, thereby attracting Market-Makers 

to facilitate tighter spreads and trading 

opportunities to the benefit of all market 

participants. Additionally, the proposed 

surcharge will be assessed uniformly to 

all market participants to whom the 

FLEX Surcharge applies. 

Further, the proposed rule change 

will uniformly exclude all transactions 

in CBTX and MBTX options from 

certain programs and surcharge (i.e., 

Liquidity Provider Sliding Scale, the 

VIP, Break-Up Credits applicable to 

Customer Agency Orders in AIM and 

SAM, the Marketing Fee, the Floor 

Broker Sliding Scale Rebate Program, 

the ORS/CORS program, and the 

Complex Surcharge), as it currently does 

for many of the Exchange’s other 

proprietary products. Overall, the 

proposed rule change is designed to 

increase incentive for customer order 

flow providers to submit customer order 

flow in a newly listed and traded 

product, which, as indicated above, 

contributes to a more robust market 

ecosystem to the benefit of all market 

participants. 

The Exchange also does not believe 

that the proposed LMM Incentive 

Programs for CBTX and MBTX options 

would impose any burden on 

intramarket competition because it 

applies to all LMMs appointed to each 

of the LMM Incentive Programs in a 


ddrumheller on DSK120RN23PROD with NOTICES1
106660 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

18 15 U.S.C. 78s(b)(3)(A). 

19 17 CFR 240.19b–4(f). 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See CFTC Staff Advisory Relating to the 

Clearing of Options on Spot Commodity Exchange 

Traded Funds (ETFs), Letter No. 24–16 (Nov. 15, 

2024), available at https://www.cftc.gov/csl/24-16/ 

download. 

uniform manner, in the same way 

similar programs apply to appointed 

LMMs in other proprietary products 

today. To the extent appointed LMMs 

receive a benefit that other market 

participants do not, these LMMs in their 

role as Market-Makers on the Exchange 

have different obligations and are held 

to different standards. For example, 

Market-Makers play a crucial role in 

providing active and liquid markets in 

their appointed products, especially in 

the newly developing CBTX and MBTX 

market, thereby providing a robust 

market which benefits all market 

participants. Such Market-Makers also 

have obligations and regulatory 

requirements that other participants do 

not have. The Exchange also notes that 

an LMM appointed to an incentive 

program may undertake added costs 

each month to satisfy heightened 

quoting standards (e.g., having to 

purchase additional logical 

connectivity). The Exchange also notes 

that the LMM Incentive Programs, like 

the other LMM Incentive Programs, is 

designed to attract additional order flow 

to the Exchange, wherein greater 

liquidity benefits all market participants 

by providing more trading 

opportunities, tighter spreads, and 

added market transparency and price 

discovery, and signals to other market 

participants to direct their order flow to 

those markets, thereby contributing to 

robust levels of liquidity. 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed rule changes 

apply only to products exclusively 

listed 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 

The foregoing rule change has become 

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

of the Act 18 and paragraph (f) of Rule 

19b–4 19 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– 

CBOE–2024–055 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–2024–055. 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–CBOE–2024–055 and should be 

submitted on or before January 21, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–30902 Filed 12–27–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102018; File No. SR–OCC– 

2024–018] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Update 

The Options Clearing Corporation’s 

By-Laws 

December 20, 2024. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on December 19, 2024, the 

Options Clearing Corporation (‘‘OCC’’) 

filed with the Securities and Exchange 

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

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared primarily by OCC. 

OCC filed the proposed rule change 

pursuant to Section 19(b)(3)(A) 3 of the 

Act and Rule 19b–4(f)(6) 4 thereunder. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change would 

amend the definition of ‘‘Fund Share’’ 

in Article I of OCC’s By-Laws (including 

the Interpretation and Policy), 

consistent with the staff advisory 

(‘‘Advisory’’) recently issued by the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) regarding the 

clearing of options on spot commodity 

exchange traded funds (‘‘ETFs’’) 5

(hereinafter ‘‘Proposed Rule Change’’). 

The proposed changes to OCC’s ByLaws are included [sic] in Exhibit 5 of 


ddrumheller on DSK120RN23PROD with NOTICES1