8726 Federal Register / Vol. 90, No. 20 / Friday, January 31, 2025 / Notices 

If the Commission takes such action, the 

Commission will institute proceedings to determine 

whether the proposed rule change should be 

approved or disapproved. 

5All references to the ‘‘Exchange’’ or ‘‘MIAX 

Pearl’’ in this filing refer to MIAX Pearl Options. 

Any references to the equities trading facility of 

MIAX PEARL, LLC will specifically be referred to 

as ‘‘MIAX Pearl Equities.’’ 

6Copies 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 

SRO. 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 101413 

(October 23, 2024), 89 FR 86007 (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 

101889, 89 FR 103002 (December 18, 2024). The 

Commission designated January 27, 2025, as the 

date by which the Commission shall approve or 

disapprove, or institute proceedings to determine 

whether to approve or disapprove, the proposed 

rule change. 

6 15 U.S.C. 78s(b)(2)(B). 

7For a complete description of the Exchange’s 

proposal, see the Notice, supra note 3. 

8See Securities Exchange Act Release No. 97658 

(June 7, 2023), 88 FR 38562 (June 13, 2023) (SR– 

Phlx–2023–22) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change To Amend 

Various Options 8 Rules). SR–Phlx–2023–22 

amended FLEX Orders in 3 ways. First, the 

Exchange amended the rules to require FLEX 

Orders to be reported into Phlx’s Options Floor 

Based Management System or ‘‘FBMS,’’ thereby 

further automating the execution and reporting of 

FLEX Options. All executed FLEX contracts will be 

reported to OPRA and sent to the OCC for clearing, 

similar to all other equity, equity index and U.S. 

dollar-settled foreign currency options orders 

executed on the Exchange’s trading floor. Second, 

the Exchange removed its RFQ process including 

the BBO Improvement Interval Process, with the 

rule change. Third, the Exchange reorganized 

Options 8, Section 34 to restructure the rule to 

include additional information which describes 

current FLEX trading on Phlx. With respect to 

Cabinet Orders, SR–Phlx–2023–22 amended 

Options 8, Section 33 to require Cabinet Orders to 

be reported into FBMS. With this change, members 

and member organizations will be required to 

record all Cabinet Orders represented in the trading 

crowd into FBMS. All executed contracts will be 

reported to OPRA and sent to OCC for clearing 

similar to all other equity, equity index and U.S. 

dollar-settled foreign currency options orders 

executed on the Exchange’s trading floor. 

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 its 

Fee Schedule to establish a fee for 

market participants that choose to 

utilize the Exchange’s testing systems 

environment via a dedicated cross 

connection.5

The proposed rule change, including 

the Exchange’s statement of the purpose 

of, and statutory basis for, the proposed 

rule change, is available on the 

Exchange’s website at https://

www.miaxglobal.com/markets/usoptions/pearl-options/rule-filings and 

on the Commission’s website at https:// 

www.sec.gov/rules-regulations/selfregulatory-organization-rulemaking/ 

national-securities-exchanges?file_

number=SR-PEARL-2025-02. 

II. 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.6

Comments may be submitted 

electronically by using the 

Commission’s internet comment form 

(https://www.sec.gov/rules-regulations/ 

self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-PEARL2025-02) or by sending an email to rulecomments@sec.gov. Please include file 

number SR–PEARL–2025–02 on the 

subject line. Alternatively, paper 

comments may be sent to Secretary, 

Securities and Exchange Commission, 

100 F Street NE, Washington, DC 

20549–1090. All submissions should 

refer to file number SR–PEARL–2025– 

02. 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-regulations/ 

self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-PEARL2025-02). 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–PEARL–2025–02 and should be 

submitted on or before February 21, 

2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01992 Filed 1–30–25; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102293; File No. SR–PHLX– 

2024–51] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change To Amend FLEX Floor 

Trading 

January 27, 2025. 

I. Introduction 

On October 8, 2024, Nasdaq PHLX 

LLC filed with the Securities and 

Exchange Commission (‘‘Commission’’), 

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

Securities Exchange Act of 1934 

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

proposed rule change to: (i) amend 

Options 8, Section 34, FLEX Trading to 

clarify certain functionality; (ii) list 

p.m.-settled FLEX Index Options whose 

exercise settlement value is derived 

from closing prices on the last trading 

day prior to expiration that expire on or 

within two business days of a third 

Friday-of-the-month expiration day for a 

non-FLEX Option (‘‘FLEX PM Third 

Friday Options’’); (iii) permit FLEX 

Options on certain Exchange-Traded 

Funds (‘‘ETFs’’) to be settled by delivery 

in cash if the underlying security meets 

prescribed criteria and set forth the 

applicable position and exercise limits 

for these options; and (iv) require that 

position and exercise limits for FLEX 

Options be aggregated with non-FLEX 

options in certain circumstances. The 

proposed rule change was published for 

comment in the Federal Register on 

October 29, 2024.3 On December 12, 

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

Act,4 the Commission designated a 

longer period within which to approve 

the proposed rule change, disapprove 

the proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.5

The Commission has received no 

comment letters on the proposed rule 

change. The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act 6 to determine 

whether to approve or disapprove the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 7

In 2023, the Exchange filed a rule 

change to amend the manner in which 

FLEX Options are transacted on Phlx’s 

Trading Floor.8 Prior to the 

implementation of SR–Phlx–2023–22, 

the Exchange filed a rule change to 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 90, No. 20 / Friday, January 31, 2025 / Notices 8727 

9See Securities Exchange Act Release No. 100321 

(June 12, 2024), 89 FR 51580 (June 18, 2024) (SR– 

Phlx–2024–24) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Delay 

Implementation of Certain Exchange Options 8 

Rules and Amend Options 8, Section 34(b)). Phlx 

further delayed the implementation so that it could 

implement SR–Phlx–2023–22 while also 

completing an OCC industry rule change prior. 

10See Notice, supra note 3 at 86008. 

11See id. 

12See Securities Exchange Act Release No. 99222 

(December 21, 2023), 88 FR 89771 (December 28, 

2023) (SR–CBOE–2023–018) (‘‘FLEX Settlement 

Pilot Approval’’). In support of making the pilot a 

permanent program, Cboe cited to its own review 

of pilot data during the course of the pilot program 

and a study by the Commission’s Division of 

Economic and Risk Analysis (‘‘DERA’’) staff. See 

FLEX Settlement Pilot Approval, notes 18 and 35. 

13See Notice, supra note 3 at 86008–86009. 

14See Notice, supra note 3 at 86009–86011. 

15See id. at 86009. 

16 15 U.S.C. 78s(b)(2)(B). 

17 Id. 

18 15 U.S.C. 78f(b)(5). 

19Rule 700(b)(3), Commission Rules of Practice, 

17 CFR 201.700(b)(3). 

20 Id. 

21 Id. 

22 15 U.S.C. 78s(b)(2)(B). 

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

24 17 CFR 240.19b–4. 

25Section 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). 

amend FLEX Options rules and further 

delay SR–Phlx–2023–22.9 The Exchange 

proposes to further amend the rules 

proposed in SR–Phlx–2023–22 and SR– 

Phlx–2024–24, and proposes to 

implement the changes in this proposal, 

as well as SR–Phlx–2023–22 and SR– 

Phlx–2024–24, at the same time. 

Specifically, the Exchange proposes 

to: (i) amend Options 8, Section 34, 

FLEX Trading to clarify certain 

functionality; (ii) permit the listing of 

FLEX PM Third Friday Options; (iii) 

permit FLEX Options on certain ETFs to 

be settled by delivery in cash if the 

underlying security meets prescribed 

criteria and set forth the applicable 

position and exercise limits for these 

options; and (iv) require that position 

and exercise limits for FLEX Options be 

aggregated with non-FLEX options in 

certain circumstances. 

The following proposed changes are 

described in more detail in the Notice. 

The Exchange proposes to amend 

Options 8, Section 34, related to FLEX 

Options, to provide greater detail to 

FLEX Options rules, including sections 

relating to characteristics, exclusions, 

and exercise price.10 The Exchange also 

proposes to amend language related to 

the settlement style of FLEX Options to 

align the Exchange’s rule text with those 

of Cboe Exchange, Inc. (‘‘Cboe’’).11 The 

Exchange also proposes to allow the 

listing of FLEX PM Third Friday 

Options. The Exchange notes that Cboe 

received approval of its pilot program 

that permitted the listing of FLEX PM 

Third Friday Options.12 The Exchange 

also proposes corresponding changes to 

describe the index values of P.M.-settled 

and A.M.-settled FLEX Index Options.13

The Exchange also proposes to 

introduce FLEX Equity Options that are 

cash-settled, along with corresponding 

changes to describe FLEX Options that 

are settled with physical delivery.14

Finally, the Exchange proposes to 

require that position and exercise limits 

for FLEX Options be aggregated with 

non-FLEX options in certain 

circumstances, as well as provide 

further detail to exercise limits.15

III. Proceedings To Determine Whether 

To Approve or Disapprove SR–Phlx– 

2024–51 and Grounds for Disapproval 

Under Consideration 

The Commission is instituting 

proceedings pursuant to Section 

19(b)(2)(B) of the Act 16 to determine 

whether the proposed rule change 

should be approved or disapproved. 

Institution of such proceedings is 

appropriate at this time in view of the 

legal and policy issues raised by the 

proposed rule change. Institution of 

proceedings does not indicate that the 

Commission has reached any 

conclusions with respect to any of the 

issues involved. Rather, as described 

below, the Commission seeks and 

encourages interested persons to 

provide additional comment on the 

proposed rule change to inform the 

Commission’s analysis of whether to 

approve or disapprove the proposed 

rule change. 

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

Act,17 the Commission is providing 

notice of the grounds for disapproval 

under consideration. As described 

above, the Exchange has proposed to 

adopt rules that will govern the listing 

and trading of FLEX Options. The 

Commission is instituting proceedings 

to allow for additional analysis of, and 

input from commenters with respect to, 

the proposed rule change’s consistency 

with the Act, and in particular, Section 

6(b)(5) of the Act, which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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.18

Under the Commission’s Rules of 

Practice, the ‘‘burden to demonstrate 

that a proposed rule change is 

consistent with the Exchange Act and 

the rules and regulations issued 

thereunder . . . is on the self-regulatory 

organization [‘SRO’] that proposed the 

rule change.’’ 19 The description of a 

proposed rule change, its purpose and 

operation, its effect, and a legal analysis 

of its consistency with applicable 

requirements must all be sufficiently 

detailed and specific to support an 

affirmative Commission finding,20 and 

any failure of an SRO to provide this 

information may result in the 

Commission not having a sufficient 

basis to make an affirmative finding that 

a proposed rule change is consistent 

with the Exchange Act and the 

applicable rules and regulations.21

For these reasons, the Commission 

believes it is appropriate to institute 

proceedings pursuant to Section 

19(b)(2)(B) of the Exchange Act 22 to 

determine whether the proposal should 

be approved or disapproved. 

IV. Procedure: Request for Written 

Comments 

The Commission requests that 

interested persons provide written 

submissions of their data, views, and 

arguments with respect to the issues 

identified above, as well as any other 

concerns they may have with the 

proposal. In particular, the Commission 

invites the written views of interested 

persons concerning whether the 

proposed rule change is consistent with 

Section 6(b)(5) of the Act 23 or any other 

provision of the Act, or the rules and 

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,24 any request 

for an opportunity to make an oral 

presentation.25

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposed rule change should be 

approved or disapproved by February 

21, 2025. Any person who wishes to file 

a rebuttal to any other person’s 

submission must file that rebuttal by 

March 7, 2025. The Commission asks 

that commenters address the sufficiency 

of the Exchange’s statements in support 

of the proposal, in addition to any other 


ddrumheller on DSK120RN23PROD with NOTICES1
8728 Federal Register / Vol. 90, No. 20 / Friday, January 31, 2025 / Notices 

26 17 CFR 200.30–3(a)(57). 

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)(1). 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. 

5Copies 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 

SRO. 

comments they may wish to submit 

about the proposed rule change. 

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– 

Phlx–2024–51 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–Phlx–2024–51. 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–Phlx–2024–51 and should be 

submitted on or before February 21, 

2025. Rebuttal comments should be 

submitted by March 7, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01995 Filed 1–30–25; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102284; File No. SR–OCC– 

2025–001] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Update 

The Options Clearing Corporation’s 

Risk Policies 

January 27, 2025. 

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 January 

17, 2025, The Options Clearing 

Corporation (‘‘Clearing Agency’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Item I below, which Items has been 

substantially prepared primarily by the 

Clearing Agency. The Clearing Agency 

has designated this proposal for 

immediate effectiveness pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(1) thereunder.4 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 Clearing Agency proposes to 

revise its Risk Management Framework, 

Corporate Risk Management Policy, and 

Default Management Policy 

(collectively, the ‘‘Clearing Agency 

Policies’’). The proposed changes are 

designed to update the Clearing Agency 

Policies to better align the descriptions 

therein with the Clearing Agency’s 

current practices and make other nonsubstantive, clarifying, conforming and 

administrative changes. These changes 

are designed to enhance the clarity of 

OCC’s internal governance arrangements 

and are not expected to have any impact 

on OCC’s Clearing Members or other 

market participants. 

The proposed rule change, including 

the Clearing Agency’s statement of the 

purpose of, and statutory basis for, the 

proposed rule change, is available on 

the Clearing Agency’s website at https:// 

www.theocc.com and on the 

Commission’s website at https://

www.sec.gov/rules-regulations/selfregulatory-organization-rulemaking/ 

%20OCC?file_number=SR-OCC-2025- 

001. 

II. 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.5

Comments may be submitted 

electronically by using the 

Commission’s internet comment form 

(https://www.sec.gov/rules-regulations/ 

self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-OCC-2025- 

001) or by sending an email to rulecomments@sec.gov. Please include file 

number SR–OCC–2025–001 on the 

subject line. Alternatively, paper 

comments may be sent to Secretary, 

Securities and Exchange Commission, 

100 F Street NE, Washington, DC 

20549–1090. All submissions should 

refer to file number SR–OCC–2025–001. 

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-regulations/ 

self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-OCC-2025- 

001). 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 


ddrumheller on DSK120RN23PROD with NOTICES1