26240 Federal Register / Vol. 87, No. 85 / Tuesday, May 3, 2022 / Notices 

16 15 U.S.C. 78s(b)(3)(A). 

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

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

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of 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. 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6)(iii). 

20For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

sufficient investor interest and demand 

in the Pilot Programs to warrant its 

extension. The Exchange believes that, 

for the period that the Pilot Programs 

has been in operation, it has provided 

investors with desirable products with 

which to trade. Furthermore, as stated 

above, the Exchange maintains that it 

has not experienced any adverse market 

effects or regulatory concerns with 

respect to the Pilot Programs. The 

Exchange further does not believe that 

the proposed extension of the Pilot 

Programs will impose any burden on 

intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because it 

only applies to trading on EDGX 

Options. To the extent that the 

continued trading of the Pilot Products 

may make EDGX Options a more 

attractive marketplace to market 

participants at other exchanges, such 

market participants may elect to become 

EDGX Options market participants. 

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 

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) of the Act 16 and Rule 19b– 

4(f)(6) thereunder.17

A proposed rule change filed under 

Rule 19b–4(f)(6) 18 normally does not 

become operative prior to 30 days after 

the date of the filing. However, Rule 

19b–4(f)(6)(iii) 19 permits the 

Commission to designate a shorter time 

if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange states that waiver 

of the 30-day operative delay will allow 

it to extend the Pilot Programs prior to 

their expiration on May 2, 2022, and 

maintain the status quo, thereby 

reducing market disruption. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest as it will allow the Pilot 

Programs to continue uninterrupted, 

thereby avoiding investor confusion that 

could result from a temporary 

interruption in the Pilot Programs. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposed rule change as 

operative upon filing.20

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 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeEDGX–2022–025 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–CboeEDGX–2022–025. 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–CboeEDGX–2022–025 and 

should be submitted on or before May 

24, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09398 Filed 5–2–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94802; File No. SR– 

CboeBZX–2022–029] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Extend the 

Pilot Programs in Connection With the 

Listing and Trading of P.M.-Settled 

Series on Certain Broad-Based Index 

Options 

April 27, 2022. 

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 April 20, 

2022, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’) filed with the Securities 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 85 / Tuesday, May 3, 2022 / Notices 26241 

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

4 17 CFR 240.19b–4(f)(6). 

5The Exchange is authorized to list for trading 

options that overlie the Mini-SPX Index (‘‘XSP’’) 

and the Russell 2000 Index (‘‘RUT’’). See Rule 

29.11(a). See also Securities Exchange Act Release 

Nos. 84480 (October 24, 2018), 83 FR 54635 

(October 30, 2018) (Notice of Filing of a Proposed 

Rule Change To Permit the Listing and Trading of 

P.M.-Settled Series on Certain Broad-Based Index 

Options on a Pilot Basis) (SR–CboeBZX–2018–066) 

(‘‘Notice’’); 85181 (February 22, 2019), 84 FR 6842 

(February 28, 2019) (Notice of Deemed Approval of 

a Proposed Rule Change To Permit the Listing and 

Trading of P.M.-Settled Series on Certain BroadBased Index Options on a Pilot Basis) (SR– 

CboeBZX–2018–066); 88052 (January 27, 2020), 85 

FR 5753 (January 31, 2020) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Extend the Pilot Programs in Connection With 

the Listing and Trading of P.M.-Settled Series on 

Certain Broad-Based Index Options) (SR–CboeBZX– 

2020–004); 88788 (April 30, 2020), 85 FR 27008 

(May 6, 2020) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Extend 

the Pilot Programs in Connection With the Listing 

and Trading of P.M.-Settled Series on Certain 

Broad-Based Index Options) (SR–CboeBZX–2020– 

038); and 90255 (October 22, 2020), 85 FR 68378 

(October 28, 2020) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Extend 

the Pilot Programs in Connection With the Listing 

and Trading of P.M.-Settled Series on Certain 

Broad-Based Index Options) (SR–CboeBZX–2020– 

076); 91699 (April 28, 2021), 86 FR 23767 (May 4, 

2021) (Notice of Filing and Immediate Effectiveness 

of a Proposed Rule Change To Extend the Pilot 

Programs in Connection With the Listing and 

Trading of P.M.-Settled Series on Certain BroadBased Index Options) (SR–CboeBZX–2021–031); 

and 93454 (October 28, 2021), 86 FR 60727 

(November 3, 2021) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Extend 

the Pilot Programs in Connection With the Listing 

and Trading of P.M.-Settled Series on Certain 

Broad-Based Index Options) (SR–CboeBZX–2021– 

072). 

6Rule 29.10(a) permits transactions in P.M.- 

settled XSP options on their last trading day to be 

effected on the Exchange between the hours of 9:30 

a.m. and 4:00 p.m. Eastern time. All other 

transactions in index options are effected on the 

Exchange between the hours of 9:30 a.m. and 4:15 

p.m. Eastern time. 

7The Exchange notes that the Pilot Programs 

currently run on a bi-annual pilot basis. 

8See supra note 5. 

9See Cboe Options Rule 4.13.13, which also 

permits P.M.-settled third Friday-of-the-month SPX 

options on a pilot basis (‘‘SPXPM Pilot Program’’). 

Continued 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

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

Rule 19b–4(f)(6) thereunder.4 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 BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX Options’’) 

proposes to extend the pilot programs in 

connection with the listing and trading 

of P.M.-settled series on certain broadbased index options. 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://markets.cboe.com/us/ 

equities/regulation/rule_filings/bzx/), 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 proposed rule change extends the 

listing and trading of P.M.-settled series 

on certain broad-based index options on 

a pilot basis.5 Rule 29.11(a)(6) currently 

permits the listing and trading of XSP 

options with third-Friday-of-the-month 

expiration dates, whose exercise 

settlement value will be based on the 

closing index value on the expiration 

day (‘‘P.M.-settled’’) on a pilot basis set 

to expire on May 2, 2022 (the ‘‘XSPPM 

Pilot Program’’). Rule 29.11(j)(3) also 

permits the listing and trading of P.M.- 

settled options on broad-based indexes 

with weekly expirations (‘‘Weeklys’’) 

and end-of-month expirations (‘‘EOMs’’) 

on a pilot basis set to expire on May 2, 

2022 (the ‘‘Nonstandard Expirations 

Pilot Program’’, and together with the 

XSPPM Pilot Program, the ‘‘Pilot 

Programs’’). The Exchange proposes to 

extend the Pilot Programs through 

November 7, 2022. 

XSPPM Pilot Program 

Rule 29.11(a)(6) permits the listing 

and trading, in addition to A.M.-settled 

XSP options, of P.M.-settled XSP 

options with third-Friday-of-the-month 

expiration dates on a pilot basis. The 

Exchange believes that continuing to 

permit the trading of XSP options on a 

P.M.-settled basis will continue to 

encourage greater trading in XSP 

options. Other than settlement and 

closing time on the last trading day 

(pursuant to Rule 29.10(a)),6 contract 

terms for P.M.-settled XSP options are 

the same as the A.M.-settled XSP 

options. The contract uses a $100 

multiplier and the minimum trading 

increments, strike price intervals, and 

expirations are the same as the A.M.- 

settled XSP option series. P.M.-settled 

XSP options have European-style 

exercise. The Exchange also has 

flexibility to open for trading additional 

series in response to customer demand. 

If the Exchange were to propose 

another extension of the XSPPM Pilot 

Program or should the Exchange 

propose to make the XSPPM Pilot 

Program permanent, the Exchange 

would submit a filing proposing such 

amendments to the XSPPM Pilot 

Program. Further, any positions 

established under the XSPPM Pilot 

Program would not be impacted by the 

expiration of the XSPPM Pilot Program. 

For example, if the Exchange lists a 

P.M.-settled XSP option that expires 

after the XSPPM Pilot Program expires 

(and is not extended), then those 

positions would continue to exist. If the 

pilot were not extended, then the 

positions could continue to exist. 

However, any further trading in those 

series would be restricted to 

transactions where at least one side of 

the trade is a closing transaction. 

As part of the XSPPM Pilot Program, 

the Exchange submits a pilot report to 

the Commission at least two months 

prior to the expiration date of the pilot.7

This annual report contains an analysis 

of volume, open interest, and trading 

patterns. In proposing to extend the 

XSPPM Pilot Program, the Exchange 

will continue to abide by the reporting 

requirements described in the Notice.8

Additionally, the Exchange will provide 

the Commission with any additional 

data or analyses the Commission 

requests because it deems such data or 

analyses necessary to determine 

whether the XSPPM Pilot Program is 

consistent with the Exchange Act. The 

Exchange makes its annual data and 

analyses previously submitted to the 

Commission under the Pilot Program 

public on its website and will continue 

to make public any data and analyses it 

submits to the Commission under the 

Pilot Program in the future. The 

Exchange also notes that its affiliated 

options exchange, Cboe Exchange, Inc. 

(‘‘Cboe Options’’) currently has pilots 

that permit P.M.-settled third Friday-ofthe-month XSP options.9


lotter on DSK11XQN23PROD with NOTICES1
26242 Federal Register / Vol. 87, No. 85 / Tuesday, May 3, 2022 / Notices 

The Exchange notes that, prior to the proposed 

November 7, 2022 Pilot Programs expiration date, 

Cboe Options intends to submit a proposal to make 

its SPXPM Pilot Program permanent. Following the 

Commission’s review and approval of Cboe 

Options’ proposal, the Exchange intends to file a 

similar proposal to make its XSPPM Pilot Program 

permanent. 

10See supra note 7. 

11See supra note 5. 

12See Cboe Options Rule 4.13(e); and Phlx Rule 

1101A(b)(5). 

13See supra note 5. 

14 15 U.S.C. 78f(b). 

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

Nonstandard Expirations Pilot Program 

Rule 29.11(j)(1) permits the listing 

and trading, on a pilot basis, of P.M.- 

settled options on broad-based indexes 

with nonstandard expiration dates and 

is currently set to expire on May 2, 

2022. The Nonstandard Expirations 

Pilot Program permits both Weeklys and 

EOMs as discussed below. Contract 

terms for the Weekly and EOM 

expirations are similar to those of the 

A.M.-settled broad-based index options, 

except that the Weekly and EOM 

expirations are P.M.-settled. 

In particular, Rule 29.11(j)(1) permits 

the Exchange to open for trading 

Weeklys on any broad-based index 

eligible for standard options trading to 

expire on any Monday, Wednesday, or 

Friday (other than the third Friday-ofthe-month or days that coincide with an 

EOM). Weeklys are subject to all 

provisions of Rule 29.11 and are treated 

the same as options on the same 

underlying index that expire on the 

third Friday of the expiration month. 

However, under the Nonstandard 

Expirations Pilot Program, Weeklys are 

P.M.-settled, and new Weekly series 

may be added up to and including on 

the expiration date for an expiring 

Weekly. 

Rule 29.11(a)(2) permits the Exchange 

to open for trading EOMs on any broadbased index eligible for standard 

options trading to expire on the last 

trading day of the month. EOMs are 

subject to all provisions of Rule 29.11 

and treated the same as options on the 

same underlying index that expire on 

the third Friday of the expiration 

month. However, under the 

Nonstandard Expirations Pilot Program, 

EOMs are P.M.-settled, and new series 

of EOMs may be added up to and 

including on the expiration date for an 

expiring EOM. 

As stated above, this proposed rule 

change extends the Nonstandard 

Expirations Pilot Program for broadbased index options on a pilot basis, for 

a period of six months. If the Exchange 

were to propose an additional extension 

of the Nonstandard Expirations Pilot 

Program or should the Exchange 

propose to make it permanent, the 

Exchange would submit additional 

filings proposing such amendments. 

Further, any positions established under 

the Nonstandard Expirations Pilot 

Program would not be impacted by the 

expiration of the pilot. For example, if 

the Exchange lists a Weekly or EOM that 

expires after the Nonstandard 

Expirations Pilot Program expires (and 

is not extended), then those positions 

would continue to exist. However, any 

further trading in those series would be 

restricted to transactions where at least 

one side of the trade is a closing 

transaction. 

As part of the Nonstandard 

Expirations Pilot Program, the Exchange 

submits a pilot report to the 

Commission at least two months prior to 

the expiration date of the pilot.10 This 

annual report contains an analysis of 

volume, open interest, and trading 

patterns. In proposing to extend the 

Nonstandard Expirations Pilot Program, 

the Exchange will continue to abide by 

the reporting requirements described in 

the Notice.11 Additionally, the 

Exchange will provide the Commission 

with any additional data or analyses the 

Commission requests because it deems 

such data or analyses necessary to 

determine whether the Nonstandard 

Expirations Pilot Program is consistent 

with the Exchange Act. The Exchange is 

in the process of making public on its 

website data and analyses previously 

submitted to the Commission under the 

Pilot Program, and will make public any 

data and analyses it submits to the 

Commission under the Pilot Program in 

the future. The Exchange notes that 

other exchanges, including its affiliated 

exchange, Cboe Options, currently have 

pilots that have weekly and end-ofmonth expirations.12

Additional Information 

The Exchange believes there is 

sufficient investor interest and demand 

in the XSPPM and Nonstandard 

Expirations Pilot Programs to warrant 

their extension. The Exchange believes 

that the Programs have provided 

investors with additional means of 

managing their risk exposures and 

carrying out their investment objectives. 

The proposed extensions will continue 

to offer investors the benefit of added 

transparency, price discovery, and 

stability, as well as the continued 

expanded trading opportunities in 

connection with different expiration 

times. The Exchange proposes the 

extension of the Pilot Programs in order 

to continue to give the Commission 

more time to consider the impact of the 

Pilot Programs. To this point, the 

Exchange believes that the Pilot 

Programs have been well-received by its 

Members and the investing public, and 

the Exchange would like to continue to 

provide investors with the ability to 

trade P.M.-settled XSP options and 

contracts with nonstandard expirations. 

All terms regarding the trading of the 

Pilot Products shall continue to operate 

as described in the XSPPM and 

Nonstandard Expirations Notice.13 The 

Exchange merely proposes herein to 

extend the terms of the Pilot Programs 

to November 7, 2022. 

Furthermore, the Exchange has not 

experienced any adverse market effects 

with respect to the Programs. The 

Exchange will continue to monitor for 

any such disruptions or the 

development of any factors that would 

cause such disruptions. The Exchange 

represents it continues to have an 

adequate surveillance program in place 

for index options and that the proposed 

extension will not have an adverse 

impact on capacity. 

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.14 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 15 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. 

In particular, the Exchange believes 

that the proposed extension of the Pilot 

Programs will continue to provide 

greater opportunities for investors. The 

Exchange believes that the Pilot 

Programs have been successful to date. 

The proposed rule change allows for an 

extension of the Program for the benefit 

of market participants. The Exchange 

believes that there is demand for the 

expirations offered under the Program 

and believes that P.M.-settled XSP, 

Weekly Expirations and EOMs will 

continue to provide the investing public 

and other market participants with the 

opportunities to trade desirable 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 85 / Tuesday, May 3, 2022 / Notices 26243 

16 15 U.S.C. 78s(b)(3)(A). 

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

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

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of 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. 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6)(iii). 

20For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

products and to better manage their risk 

exposure. The proposed extension will 

also provide the Commission further 

opportunity to observe such trading of 

the Pilot Products. Further, the 

Exchange has not encountered any 

problems with the Programs; it has not 

experienced any adverse effects or 

meaningful regulatory or capacity 

concerns from the operation of the Pilot 

Programs. Also, the Exchange believes 

that such trading pursuant to the 

XSPPM Pilot Program has not, and will 

not, adversely impact fair and orderly 

markets on Expiration Fridays for the 

underlying stocks comprising the S&P 

500 index. 

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. Specifically, 

the Exchange believes that, by extending 

the expiration of the Pilot Programs, the 

proposed rule change will allow for 

further analysis of the Program and a 

determination of how the Program shall 

be structured in the future. In doing so, 

the proposed rule change will also serve 

to promote regulatory clarity and 

consistency, thereby reducing burdens 

on the marketplace and facilitating 

investor protection. 

Specifically, the Exchange does not 

believe the continuation of the Pilot 

Program will impose any unnecessary or 

inappropriate burden on intramarket 

competition because it will continue to 

apply equally to all BZX Options market 

participants, and the Pilot Products will 

continue to be available to all BZX 

Options market participants. The 

Exchange believes there is sufficient 

investor interest and demand in the 

Pilot Programs to warrant its extension. 

The Exchange believes that, for the 

period that the Pilot Programs has been 

in operation, it has provided investors 

with desirable products with which to 

trade. Furthermore, as stated above, the 

Exchange maintains that it has not 

experienced any adverse market effects 

or regulatory concerns with respect to 

the Pilot Programs. The Exchange 

further does not believe that the 

proposed extension of the Pilot 

Programs will impose any burden on 

intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act because it 

only applies to trading on BZX Options. 

To the extent that the continued trading 

of the Pilot Products may make BZX 

Options a more attractive marketplace to 

market participants at other exchanges, 

such market participants may elect to 

become BZX Options market 

participants. 

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 

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) of the Act 16 and Rule 19b– 

4(f)(6) thereunder.17

A proposed rule change filed under 

Rule 19b–4(f)(6) 18 normally does not 

become operative prior to 30 days after 

the date of the filing. However, Rule 

19b–4(f)(6)(iii) 19 permits the 

Commission to designate a shorter time 

if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange states that waiver 

of the 30-day operative delay will allow 

it to extend the Pilot Programs prior to 

their expiration on May 2, 2022, and 

maintain the status quo, thereby 

reducing market disruption. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest as it will allow the Pilot 

Programs to continue uninterrupted, 

thereby avoiding investor confusion that 

could result from a temporary 

interruption in the Pilot Programs. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposed rule change as 

operative upon filing.20

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 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeBZX–2022–029 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–2022–029. 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 


lotter on DSK11XQN23PROD with NOTICES1
26244 Federal Register / Vol. 87, No. 85 / Tuesday, May 3, 2022 / Notices 

21 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 68888 

(February 8, 2013), 78 FR 10668 (February 14, 2013) 

(SR–CBOE–2012–120) (the ‘‘SPXPM Approval 

Order’’). Pursuant to Securities Exchange Act 

Release No. 80060 (February 17, 2017), 82 FR 11673 

(February 24, 2017) (SR–CBOE–2016–091), the 

Exchange moved third-Friday P.M.-settled options 

into the S&P 500 Index options class, and as a 

result, the trading symbol for P.M.-settled S&P 500 

Index options that have standard third Friday-ofthe-month expirations changed from ‘‘SPXPM’’ to 

‘‘SPXW.’’ This change went into effect on May 1, 

2017, pursuant to Cboe Options Regulatory Circular 

RG17–054. 

6See Securities Exchange Act Release No. 70087 

(July 31, 2013), 78 FR 47809 (August 6, 2013) (SR– 

CBOE–2013–055) (the ‘‘P.M.-settled XSP Approval 

Order’’). 

7See Securities Exchange Act Release No. 91067 

(February 5, 2021), 86 FR 9108 (SR–2020–CBOE– 

116) (the ‘‘P.M.-settled MRUT Approval Order’’). 

8For more information on the Pilot Products or 

the Pilot Program, see the SPXPM Approval Order, 

the P.M.-settled XSP Approval Order, and the P.M.- 

settled MRUT Approval Order. 

9See Securities Exchange Act Release Nos. 71424 

(January 28, 2014), 79 FR 6249 (February 3, 2014) 

(SR–CBOE–2014–004); 73338 (October 10, 2014), 79 

FR 62502 (October 17, 2014) (SR–CBOE–2014–076); 

77573 (April 8, 2016), 81 FR 22148 (April 14, 2016) 

(SR–CBOE–2016–036); 80386 (April 6, 2017), 82 FR 

17704 (April 12, 2017) (SR–CBOE–2017–025); 

83166 (May 3, 2018), 83 FR 21324 (May 9, 2018) 

(SR–CBOE–2018–036); 84535 (November 5, 2018), 

83 FR 56129 (November 9, 2018) (SR–CBOE–2018– 

069); 85688 (April 18, 2019), 84 FR 17214 (April 24, 

2019) (SR–CBOE–2019–023); 87464 (November 5, 

2019), 84 FR 61099 (November 12, 2019) (SR– 

CBOE–2019–107); 88674 (April 16, 2020), 85 FR 

22479 (April 22, 2020) (SR–CBOE–2020–036); 

90263 (October 23, 2020), 85 FR 68611 (October 29, 

2020) (SR–CBOE–2020–100); 91698 (April 28, 

2021), 86 FR 23761 (May 4, 2021) (SR–CBOE–2021– 

027); and 93455 (October 28, 2021), 86 FR 60660 

(November 3, 2021) (SR–CBOE–2021–062). 

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–CboeBZX–2022–029 and 

should be submitted on or before May 

24, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–09399 Filed 5–2–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94799; File No. SR–CBOE– 

2022–019] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Operation 

of its SPXPM Pilot Program 

April 27, 2022. 

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 April 20, 

2022, Cboe Exchange, Inc. (‘‘Exchange’’ 

or ‘‘Cboe Options’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

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

Rule 19b–4(f)(6) thereunder.4 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 extend 

the operation of its SPXPM pilot 

program. The text of the proposed rule 

change is provided below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Rules of Cboe Exchange, Inc. 

* * * * * 

Rule 4.13. Series of Index Options 

* * * * * 

Interpretations and Policies 

.01–.12 No change. 

.13 In addition to A.M.-settled S&P 

500 Stock Index (‘‘SPX’’) options 

approved for trading on the Exchange 

pursuant to Rule 4.13, the Exchange 

may also list options on SPX whose 

exercise settlement value is derived 

from closing prices on the last trading 

day prior to expiration (P.M.-settled 

third Friday-of-the-month SPX options 

series). The Exchange may also list 

options on the Mini-SPX Index (‘‘XSP’’) 

and Mini-RUT Index (‘‘MRUT’’) whose 

exercise settlement value is derived 

from closing prices on the last trading 

day prior to expiration (‘‘P.M.-settled’’). 

P.M.-settled third Friday-of-the-month 

SPX options series and P.M.-settled XSP 

and MRUT options will be listed for 

trading for a pilot period ending [May 

2]November 7, 2022. 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

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

AboutCBOE/CBOELegalRegulatory

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

the Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On February 8, 2013, the Securities 

and Exchange Commission (the 

‘‘Commission’’) approved a rule change 

that established a Pilot Program that 

allows the Exchange to list options on 

the S&P 500 Index whose exercise 

settlement value is derived from closing 

prices on the last trading day prior to 

expiration (‘‘SPXPM’’).5 On July 31, 

2013, the Commission approved a rule 

change that amended the Pilot Program 

to allow the Exchange to list options on 

the Mini-SPX Index (‘‘XSP’’) whose 

exercise settlement value is derived 

from closing prices on the last trading 

day prior to expiration (‘‘P.M.-settled 

XSP’’).6 On February 5, 2021, the 

Commission approved a rule change 

that amended the Pilot Program to allow 

the Exchange to list options on the Mini 

Russell 2000 Index (‘‘MRUT’’ or ‘‘MiniRUT’’) whose exercise settlement value 

is derived from closing prices on the last 

trading day prior to expiration (‘‘P.M.- 

settled MRUT’’) 7 (together, SPXPM, 

P.M.-settled XSP, and P.M.-settled 

MRUT to be referred to herein as the 

‘‘Pilot Products’’).8 The Exchange has 

extended the pilot period numerous 

times, which, pursuant to Rule 4.13.13, 

is currently set to expire on the earlier 

of May 2, 2022 or the date on which the 

pilot program is approved on a 

permanent basis.9 The Exchange hereby 

proposes to further extend the end date 


lotter on DSK11XQN23PROD with NOTICES1