Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 52511 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3BX Options 4, Section 2 has an extra ‘‘as’’. BX 

Options 4, Section 3(a)(1) contains a ‘‘The’’ instead 

of ‘‘the.’’ BX Options 4, Section 3(b) uses the term 

foregoing’’ as compared to ‘‘forgoing’’ on ISE. BX 

Options 4, Section 3(h) defines the term ‘‘NMS 

stock’’ whereas ISE defines the term ‘‘NMS.’’ BX 

Options 4, Section 3(k)(1)(B) has an extra ‘‘this.’’ 

The term ‘‘such’’ within BX Options 4, Section 

4(f)(5) is lowercase. BX Options 4, Section 5(a) has 

an extra ‘‘by the Exchange.’’ BX Options 4, Section 

5(b) has a ‘‘the’’ and ISE Options 4, Section 5(b) has 

a ‘‘that.’’ Options 4, Section 5(e) has a lowercase 

‘‘rule’’ and unlike the same rule in ISE does not 

have the registered trademarks. BX Supplementary 

.01(a) to Options 4, Section 5 uses ‘‘$50’’ instead 

of ‘‘$50.00,’’ has the term ‘‘option’’ instead of 

‘‘options,’’ spells out ‘‘one hundred fifty’’ and 

incorrectly uses the term ‘‘LEAPS’’ instead of 

‘‘LEAPs.’’ BX Supplementary .01(b) to Options 4, 

Section 5 has the terms ‘‘security’’ instead of 

‘‘stock’’ and ‘‘the’’ instead of ‘‘its.’’ BX 

Supplementary .01(d) to Options 4, Section 5 uses 

the term ‘‘Strike Program’’ instead of ‘‘Strike Price 

Program;’’ uses an extra ‘‘the’’; and phrases the last 

paragraph as, ‘‘Notwithstanding the above delisting 

policy, the Exchange may grant member requests to 

add strikes and/or maintain strikes in series of 

options classes traded pursuant to the $1 Strike 

Program that are eligible for delisting.’’ The last 

paragraph of ISE Supplementary .01(d) to Options 

4, Section 5 states, ‘‘Notwithstanding the above 

delisting policy, Member requests to add strikes 

and/or maintain strikes in series of options classes 

traded pursuant to the $1 Strike Price Interval 

Program that are eligible for delisting may be 

granted.’’ These differences are non-substantive. BX 

Supplementary .02(d) to Options 4, Section 5 has 

the term ‘‘section’’ instead of ‘‘Rule.’’ BX 

Supplementary .03(e) to Options 4, Section 5 has 

rule in lowercase. BX Options 4, Section 6(a) uses 

a different phrase than ISE Options 4, Section 6(a), 

‘‘Select provisions of the OLPP’’ versus ‘‘The 

provisions set forth in this Rule.’’ This 

aforementioned difference is non-substantive. BX 

Options 4, Section 6(b)(3) uses the term ‘‘options’’ 

instead of ‘‘option.’’ BX Options 4, Section 

6(b)(ii)(1) uses the term ‘‘options’’ instead of 

‘‘option,’’ the term ‘‘Strike Program’’ instead of 

‘‘Strike Price Interval Program’’ and, ‘‘rules’’ instead 

of ‘‘Rules.’’ BX Options 4, Section 9 uses the term 

‘‘Fund Shares’’ instead of ‘‘Exchange-Traded Fund 

Shares.’’ 

4BX Options 4, Section 4(b)(5) should cite to 

‘‘Options 4, Section 3(c)’’ instead of ‘‘Options 4, 

Section 3.’’ In addition, BX Options 4, Section 

4(b)(5) has two stray commas. BX Options 4, 

Section 4(f) has an extra ‘‘in’’. BX Options 4, 

Section 4(g)(2) has an extra ‘‘of Options 4’’ and two 

stray commas. BX Options 4, Section 5(d) 

incorrectly cites to Section 3(i) instead of Section 

3(h). BX Options 4, Section 6(b) incorrectly cites to 

Section 3(i) instead of Section 3(h). BX Options 4, 

Section 6(b)(i) incorrectly cites to Supplementary 

Material .03(d) instead of Supplementary Material 

.02(d). This paragraph also uses the term ‘‘options’’ 

instead of ‘‘option.’’ Options 3, Section 6(b)(ii) 

incorrectly cites to subparagraph (a) instead of 

subparagraph (i). 

5See BX Options 4, Section 3(c)(2). BX utilizes 

citations to Options 4, Section 3(b)(1) and Options 

4, Section 3(b)(2) instead of simply citing to ‘‘this 

Rules’’ as is the case with ISE Options 4, Section 

3(c)(2). Other examples include BX Options 4, 

Section 3(c)(3) which cites to Options 4, Section 

3(b)(4), BX Options 4, Section 3(c)(4)(B)(ii) which 

cites to Options 4, Section 3(b)(5)(i). 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2021–023 and 

should be submitted on or before 

October 12, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–20333 Filed 9–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92987; File No. SR–BX– 

2021–038] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Incorporate BX 

Options 4 Rules By Reference to 

Nasdaq ISE, LLC Options 4 Rules 

September 15, 2021. 

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 

September 3, 2021, Nasdaq BX, Inc. 

(‘‘BX’’ or ‘‘Exchange’’) 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 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 incorporate 

the BX Options 4 Rules by reference to 

Nasdaq ISE, LLC (‘‘ISE’’) Options 4 

Rules. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/bx/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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The BX Options 4 Listing Rules 

provide for the options that may be 

listed and traded on BX. The Exchange 

proposes to incorporate the BX Options 

4 Rules by reference to Nasdaq ISE, LLC 

(‘‘ISE’’) Options 4 Rules. 

Currently, the BX Options 4 Rules are 

very similar to the ISE Options 4 Rules. 

The differences between the BX and ISE 

Options 4 Rules are non-substantive 

technical differences.3 Other changes 

are non-substantive word choice 

differences.4 Finally, certain rules 

utilize the phrase ‘‘this Rule’’ instead of 

a citation.5 Of note, BX Options 4, 

Section 3(h) does not list reverse 

repurchase agreements in the defined 

term ‘‘Financial Instruments’’. The 

Exchange proposes to include ‘‘reverse 

repurchase agreements’’ within the list 

of securities deemed appropriate for 

options trading on BX in order that the 

Exchange may list the same products as 

ISE may list today. Also, BX Options 4, 

Section 8(a) should include the words 

‘‘and continuity.’’ BX’s continuity rules 

utilize the LEAP term. ISE has this rule 

text within its Options 4, Section 8(a). 

The Exchange proposes to incorporate 

by reference the BX Options 4 Rules to 

ISE Options 4 Rules. To that end, BX 

proposes to replace the current BX 

Options 4 Rules with the following rule 

text: 

The rules contained in Nasdaq ISE Options 

4, as such rules may be in effect from time 

to time (the ‘‘Options 4 Rules’’), are hereby 

incorporated by reference into this BX 

Options 4, and are thus BX Rules and thereby 

applicable to BX Participants and associated 

persons. BX Participants shall comply with 

the Options 4 Rules as though such rules 

were fully set forth herein. All defined terms, 

including any variations thereof, contained 

in the Options 4 Rules shall be read to refer 

to the BX related meaning of such term. 

Solely by way of example, and not in 

limitation or in exhaustion: The defined term 

‘‘Exchange’’ in the Options 4 Rules shall be 

read to refer to BX; the defined term ‘‘Rule’’ 

in the Options 4 Rules shall be read to refer 

to the BX Rule; the defined terms 

‘‘Competitive Market Maker’’ and ‘‘Market 


lotter on DSK11XQN23PROD with NOTICES1
52512 Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 

6The Exchange will separately request an 

exemption from the rule filing requirements of 

Section 19(b) of the Act for changes to BX Options 

4 Rules to the extent such rules are affected solely 

by virtue of a change to ISE Options 4 Rules. The 

Exchange’s proposed rule change will not become 

effective unless and until the Commission grants 

this exemption request. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 11 17 CFR 200.30–3(a)(12). 

Maker’’ in the Options 4 Rules shall be read 

to refer to the BX Market Maker; the defined 

term ‘‘Primary Market Maker’’ in the Options 

4 Rules shall be read to refer to the BX Lead 

Market Maker; and the defined terms 

‘‘Electronic Access Member,’’ ‘‘EAM,’’ or 

‘‘Member’’ in the Options 4 Rules shall be 

read to refer to the BX Participant. 

This rule text will account for 

differences that may exist in the usage 

of terms as between BX and ISE. The 

proposed rule text list instances in 

which cross references in the ISE 

Options 4 Rules to BX Options 4 Rules 

shall be read to refer instead to the 

Exchange Rules, and references to ISE 

terms (whether or not defined) shall be 

read to refer to the Exchange-related 

meanings of those terms. For instance, 

references to defined terms ‘‘Exchange’’ 

or ‘‘ISE’’ shall be read to refer to ISE. 

The Exchange proposes to delete in 

their entirety the BX Options 4 Rules 

and incorporate by reference the ISE 

Options 4 Rules.6 Today, the rules of 

Nasdaq GEMX, LLC and Nasdaq MRX, 

LLC are incorporated by reference to the 

rules of ISE. The Exchange will also 

separately file to incorporate the 

Options 4 Rules of The Nasdaq Options 

Market LLC and Nasdaq Phlx LLC to the 

ISE Options 4 Rules, respectively, to 

ISE. The Exchange believes that 

harmonizing the Options 4 Rules across 

its 6 Nasdaq Affiliated Options 

Exchanges will assist the Exchange in 

listing options across its affiliated 

markets. Also, incorporating by 

reference the ISE Options 4 Rules into 

the Exchange’s rulebook will organize 

those listing rules in a more logical 

order, thereby eliminating unnecessary 

complexity in the listing process and 

otherwise streamlining the Exchange’s 

existing listing rules and their 

associated procedures. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,8

in particular, in that it is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest. The Exchange believes 

that its proposal to delete its existing 

listing rules and incorporate by 

reference the ISE Options 4 Rules will 

promote a free and open market, and 

will benefit investors, the public, and 

the markets, because the new rules will 

be clearer, better organized, and 

simpler. Also, the proposal is just and 

equitable because it will render the 

Exchange’s listing rules easier for 

Participants to read and 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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not expect that its 

proposed changes to incorporate BX’s 

Options 4 Rules to ISE’s Options 4 Rules 

will have any competitive impact on 

BX’s listing rules, to the contrary, the 

Exchange hopes that by clarifying, 

reorganizing, and streamlining its listing 

rules, the Exchange’s listing process will 

be clear. The proposed changes will 

apply equally to all market participants. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 9 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.10

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 shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BX–2021–038 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–BX–2021–038. 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–BX–2021–038 and should 

be submitted on or before October 12, 

2021. 


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Federal Register / Vol. 86, No. 180 / Tuesday, September 21, 2021 / Notices 52513 

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

2 17 CFR 240.19b–4. 

3Phlx capitalizes the ‘‘of’’ and ‘‘and’’ in title to 

Options 4, Section 2, while ISE does not capitalize 

those words. Phlx Options 4, Section 3(c)(2)(A)(ii) 

uses a ‘‘that’’ instead of a ‘‘than’’ like ISE. Phlx 

Options 4, Section 3(c)(3) has an extra phrase ‘‘of 

this Rule’’ as does Phlx Options 4, Section 

3(c)(4)(B)(ii). Also, Phlx Options 4, Section 

3(c)(4)(B)(ii) cites to ‘‘Options 4, Section 3(b)(5)(i)’’ 

instead of ‘‘Options 4, Section 3(b)(5)(l)’’ like ISE. 

Phlx defines a ‘‘market information sharing 

agreement’’ within Options 4, Section 3(g)(2), 

whereas ISE defines the same term within Options 

4, Section 3(i). ISE Options 4, Section 4(b)(5) has 

a reference to ‘‘paragraph (b)’’ where Phlx does not 

have the reference to (b) it only states of this 

paragraph. Options 4, Section 4(g) lacks an ‘‘if’’ 

similar to ISE. Phlx Options 4, Section 4(f)(1) lacks 

an ‘‘of’’ similar to ISE. ISE Options 4, Section 5(a), 

unlike Phlx, has an extra ‘‘as’’, specific reference to 

‘‘Options 4, Section 6(b)’’ and use of the phrase ‘‘to 

this Section 5’’ in two places. ISE Options 4, 

Section 5(d) has an extra ‘‘the.’’ Phlx Options 4, 

Section 5 at Supplementary Material .03 is missing 

a reference to ‘‘and QQQ’’ which should appear as 

it does in the remainder of the rule filing. Phlx 

Options 4, Section 5 at Supplementary Material .04 

has the term ‘‘P.M. settled’’ where ISE does not and 

capitalizes some terms that ISE does not capitalize. 

The word ‘‘approximate’’ appears in Phlx Options 

4, Section 5 at Supplementary Material .04(c) and 

not in ISE. Phlx Options 4, Section 5 at 

Supplementary Material .04(d) references Options 

1, Section 1(b)(13) when it should reference 

Options 4, Section 3(h) similar to ISE. Options 4, 

Section 3(f)(1) should have an ‘‘and’’ and an ‘‘a’’ 

similar to ISE instead of an ‘‘or.’’ Phlx Options 4, 

Section 5 at Supplementary Material .06 uses the 

term ‘‘Strike Price Program’’ instead of ‘‘Strike 

Program’’ like ISE. Phlx Options 4, Section 8 uses 

the term ‘‘intervals’’ instead of the singular 

‘‘interval’’ like ISE and references Options 2, 

Section 4(c)(1)(A) instead of Options 2, Section 

4(b)(4)(i)(A) like ISE. Phlx Options 4, Section 9 uses 

the term ‘‘Exchange-Traded Fund Shares’’ and ISE 

uses the term ‘‘Fund Shares.’’ Options 4, Section 10 

references different exchange names and terms for 

members and market makers. 

4Options 4, Section 3(f)(4) states, ‘‘the SEC has 

otherwise authorized the listing’’ whereas ISE states 

‘‘the SEC has otherwise authorized the listing.’’ 

Unlike ISE, Phlx does not have the phrase ‘‘In the 

case of options covering Fund Shares approved 

pursuant to’’ at the beginning of Options 4, Section 

4(g)(2). ISE Options 4, Section 5(b) uses ‘‘shall’’ and 

Phlx uses ‘‘will.’’ Phlx Options 4, Section 5 at 

Supplementary .01 has an extra phrase, ‘‘(a) The 

interval of strike prices of series of options on 

individual stocks may be:’’ and a period after Strike 

Price Interval Program. Phlx Options 4, Section 5 

at Supplementary .01(b) uses the term ‘‘security’’ 

instead of ‘‘stock’’ and numbers the subsections 

differently. Phlx has the sentence, ‘‘A security shall 

remain in the $1 Strike Price Interval Program until 

otherwise designated by the Exchange’’ and ISE 

does not have the same sentence, although ISE has 

the same ability to determine what listings are in 

the $1 Strike Price Interval Program. Also, ISE uses 

the phrase ‘‘Strike Price Interval Program’’ in that 

paragraph and Phlx uses ‘‘Strike Program.’’ 

5See Phlx Options 4, Section 3(c)(2). 

6See Securities Exchange Act Release No. 92226 

(June 22, 2021) (SR–ISE–2021–14). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–20326 Filed 9–20–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92990; File No. SR–Phlx– 

2021–53] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Incorporate the Phlx 

Options 4 Rules By Reference to 

Nasdaq ISE, LLC Options 4 Rules 

September 15, 2021. 

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 

September 3, 2021, Nasdaq PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) 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 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 incorporate 

the Phlx Options 4 Rules by reference to 

Nasdaq ISE, LLC (‘‘ISE’’) Options 4 

Rules. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Phlx Options 4 Listing Rules 

provide for the options that may be 

listed and traded on Phlx. The Exchange 

proposes to incorporate the Phlx 

Options 4 Rules by reference to Nasdaq 

ISE, LLC (‘‘ISE’’) Options 4 Rules. 

Options 4, Section 3, Criteria for 

Underlying Securities 

Currently, the Phlx Options 4 Rules 

are very similar to the ISE Options 4 

Rules, except for Options 4, Section 

3(h). The differences between the Phlx 

and ISE Options 4 Rules are nonsubstantive technical differences.3 Other 

changes are non-substantive word 

choice differences.4 Finally, certain 

rules utilize the phrase ‘‘this Rule’’ 

instead of a citation.5

Also, ISE recently amended its 

Options 4, Section 3(h) 6 to make certain 

amendments which Phlx proposes to 

adopt in order that its rules may be 

identical. 

First, Phlx would remove rule text 

within Options 4, Section 3(h) at the 

end of the paragraph which provides, 

‘‘all of the following conditions are 

met.’’ Paragraph (h) would simply end 

with ‘‘provided that:’’ and direct market 

participants to subparagraphs (1) and 

(2). 

Second, the Exchange proposes to 

capitalize ‘‘the’’ at the beginning of 

Options 4, Section 3(h)(1) and remove ‘‘; 

and’’ at the end of the paragraph and 

instead at a period so that 

subparagraphs (1) and (2) are not linked, 

but rather read independently. Today, 

Options 4, Section 3(h)(1) applies to all 

Exchange-Traded Fund Shares. 

Third, the Exchange proposes to 

clarify that Options 4, Section 3(h)(2) 

applies to only international or global 

Exchange-Traded Fund Shares. 

Specifically, the Exchange proposes to 

provide within Options 4, Section 

3(h)(2) that, ‘‘Exchange-Traded Fund 

Shares based on international or global 

indexes, or portfolios that include nonU.S. securities, shall meet the following 

criteria.’’ Proposed Options 4, Sections 

3(h) generally concerns securities 

deemed appropriate for options trading. 

The proposed rule text adds language 

stating that subparagraph (h)(2) of 

Options 4, Section 3 applies to the 

extent the Exchange-Traded Fund Share 

is based on international or global 

indexes, or portfolios that include nonU.S. securities. This language is 

intended to serve as a guidepost and 

clarify that (1) subparagraph (h)(2) does 

not apply to an Exchange-Traded Fund 

Shares based on a U.S. domestic index 

or portfolio, and (2) subparagraph (h)(2) 

includes Exchange-Traded Fund Shares 

that track a portfolio and do not track 

an index. 


lotter on DSK11XQN23PROD with NOTICES1