Federal Register / Vol. 87, No. 99 / Monday, May 23, 2022 / Notices 31287 

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

9 In particular, the ICE proposal increased ICE’s 

total number of authorized shares of ICE common 

stock in order to effectuate a 5-for-1 stock split by 

way of a stock dividend. See Securities Exchange 

Act Release No. 78992 (September 29, 2016), 81 FR 

69092 (October 5, 2016) (SR–NYSE–2016–57, SR– 

NYSEArca–2016–119, and SR–NYSEMKT–2016– 

80) (hereinafter, ‘‘ICE Approval’’). 

10 15 U.S.C. 78s(b)(3)(A). 

11 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. 12 17 CFR 200.30–3(a)(12). 

Exchange to effectively carry out their 

regulatory oversight responsibilities 

under the Act. 

The Exchange also believes that the 

proposal is consistent with Section 

6(b)(5) of the Act 8 because it would not 

impact the Exchange’s governance or 

regulatory structure, which would 

continue to 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. 

The Exchange believes that the 

proposed rule change would 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, because by increasing 

Nasdaq’s authorized shares of Common 

Stock and shares of capital stock 

sufficient to allow Nasdaq to effectuate 

the Stock Dividend, the proposed rule 

change will facilitate broader ownership 

of Nasdaq. 

The Exchange also notes that the 

proposed rule change is substantially 

similar to a prior proposal by 

Intercontinental Exchange, Inc. (‘‘ICE’’), 

which is the holding company for three 

national securities exchanges, including 

the New York Stock Exchange. The ICE 

proposal amended ICE’s Certificate of 

Incorporation to effectuate a similar 

stock split as proposed by the Exchange 

herein.9 As such, the Exchange does not 

believe that its proposal raises any new 

or novel issues not already considered 

by the Commission. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Because the proposed rule change 

relates solely to the number of 

authorized shares of Common Stock and 

shares of capital stock of the Company 

and not to the operations of the 

Exchange, 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. 

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) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

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– 

MRX–2022–05 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–MRX–2022–05. 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–MRX–2022–05 and should 

be submitted on or before June 13, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10958 Filed 5–20–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94928; File No. SR–CBOE– 

2022–009] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Order Approving a 

Proposed Rule Change To Amend Rule 

4.3.06 To Allow the Exchange To List 

and Trade Options on the Goldman 

Sachs Physical Gold ETF 

May 17, 2022. 

I. Introduction 

On March 25, 2022, Cboe Exchange, 

Inc. (‘‘Exchange’’ or ‘‘Cboe’’) filed with 

the Securities and Exchange 


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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 94594 

(Apr. 4, 2022), 87 FR 20901 (Apr. 8, 2022) 

(‘‘Notice’’). 

4See Letter from Andrew Robison, dated April 

28, 2022, available at https://www.sec.gov/ 

comments/sr-cboe-2022-009/srcboe2022009.htm. 

The comments expressed by the commenter are not 

relevant to the proposed rule change. 

5The terms ‘‘Unit’’ and Exchange-Traded Fund 

(‘‘ETF’’) mean a share or other security traded on 

a national securities exchange and defined as an 

NMS stock as set forth in Cboe Rule 4.3. See Cboe 

Rule. 1.1. Capitalized terms not otherwise defined 

herein have the meanings set forth in CBOE’s rules 

or the Notice. 

6See Cboe Rules 4.3.06(a)(1)–(5). 

7See Notice, supra note 3, 87 FR at 20902. 

8See id. 

9See id. The Trust may include minimal cash. 

See id. at n. 5. 

10See Notice, supra note 3, 87 FR at 20902. 

11See id. 

12See id. The trusts may include minimal cash. 

See id. at n.6. 

13See Notice, supra note 3, 87 FR at 20902. 

14See id. 

15See id. 

16See id. 

17See id. 

18See id. The term ‘‘NMS stock’’ has the meaning 

set forth in Rule 600 of Regulation NMS. See Cboe 

Rule 1.1. 

19See Notice, supra note 3, 87 FR at 20902. The 

Exchange notes that the year-to-date (March 23, 

2022) average daily volume (‘‘ADV’’) of AAAU 

shares is approximately 845,200 shares, the market 

capitalization of AAAU as of March 23, 2022 is 

approximately $727.3 million and the NAV of its 

shares is $19.19. See id. at n. 7. 

20See Cboe Rule 4.3.01 (providing guidelines 

established by the Board of Directors to be 

considered by the Exchange in evaluating potential 

underlying securities for Exchange option 

transactions). 

21See Notice, supra note 3, 87 FR at 20902–03. 

22See id. See also Goldman Sachs Physical Gold 

ETF, Prospectus (January 8, 2021) available at 

https://www.gsam.com/content/gsam/us/en/ 

individual/products/etf-fund-finder/goldmansachs-physical-gold-etf.html#activeTab=overview. 

23See Notice, supra note 3, 87 FR at 20903. 

24See id. 

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 list and trade options on the 

Goldman Sachs Physical Gold ETF 

(‘‘AAAU’’ or ‘‘Trust’’). The proposed 

rule change was published for comment 

in the Federal Register on April 8, 

2022.3 The Commission received one 

comment on the proposed rule change.4

This order approves the proposed rule 

change. 

II. Description of the Proposed Rule 

Change 

Under Cboe Rule 4.3.06(a), securities 

deemed appropriate for options trading 

include Units 5 that represent certain 

types of interests.6 Cboe Rule 

4.3.06(a)(4) specifies Units that 

represent interests in the SPDR Gold 

Trust, the iShares COMEX Gold Trust, 

the iShares Silver Trust, the ETFS Silver 

Trust, the ETFS Gold Trust, the ETFS 

Palladium Trust, the ETFS Platinum 

Trust, or the Sprott Physical Gold Trust. 

The proposed rule change would add 

AAAU to the list of ETFs under Rule 

4.3.06(a)(4) that may be approved for 

options trading on the Exchange. 

The Exchange states that AAAU is a 

gold-backed commodity ETF structured 

as a trust, much like other Units 

currently deemed appropriate for 

options trading pursuant to Cboe Rule 

4.3.06(a)(4), such as the SPDR Gold 

Trust (‘‘GLD’’), iShares COMEX Gold 

Trust (‘‘IAU’’), Aberdeen Standard 

Physical Gold Trust (‘‘SGOL’’), and 

Sprott Physical Gold Trust (‘‘PHYS’’).7

According to the Exchange, the Trust’s 

investment objective is for its shares to 

reflect the performance of the price of 

gold (less the expenses of the Trust’s 

operations), which offers investors an 

opportunity to gain exposure to gold 

without the complexities of gold 

delivery.8 The Trust issues Goldman 

Sachs Physical Gold ETF Shares, which 

represent units of fractional undivided 

beneficial interest in the Trust, the 

assets of which consist principally of 

gold.9 The Exchange states that AAAU 

is a competitively-priced commodity 

ETF whose cost is comparatively lower 

than the industry average for 

commodity ETFs.10 The Exchange 

asserts that AAAU provides investors 

with a cost-efficient alternative that 

allows a level of participation in the 

gold market through the securities 

market.11 The GLD, IAU, SGOL and 

PHYS trusts also issue shares that 

represent fractional undivided 

beneficial interest in the respective 

trust, each of which holds physical gold 

and is designed to track gold or the 

performance of the price of gold and 

offer access to the gold market.12

AAAU options will trade in the same 

manner as any other ETF options on the 

Exchange.13 The Exchange states that 

Cboe rules that currently apply to the 

listing and trading of the 

aforementioned options on gold-backed 

commodity ETFs also will apply to the 

listing and trading of AAAU options on 

the Exchange.14 The Exchange notes 

that these include rules governing, 

among other things, listing criteria, 

expiration and exercise prices, 

minimum increments, position and 

exercise limits, margin requirements, 

customer accounts and trading halt 

procedures.15

The Exchange’s initial listing 

standards for ETFs on which options 

may be listed and traded on the 

Exchange will apply to AAAU.16 The 

Exchange represents that AAAU 

satisfies the Exchange’s initial listing 

standards as set forth in Cboe Rule 

4.3(a) and Cboe Rule 4.3.06(b).17

Pursuant to Cboe Rule 4.3(a), an 

underlying security on which options 

may be listed and traded on the 

Exchange must be duly registered and 

be an NMS stock,18 and be characterized 

by a substantial number of outstanding 

shares which are widely held and 

actively traded.19 In addition, Cboe Rule 

4.3.06(b) requires that Units must either 

(1) meet the criteria and guidelines 

under Cboe Rule 4.3.01,20 or (2) be 

available for creation or redemption 

each business day from or through the 

issuing trust, investment company, 

commodity pools or other issuer in cash 

or in kind at a price related to net asset 

value, and the issuing trust, investment 

company, commodity pools or other 

issuer is obligated to issue Units in a 

specified aggregate number even if some 

or all of the investment assets and/or 

cash required to be deposited have not 

been received by the issuing trust, 

investment company, commodity pools 

or other issuer, subject to the condition 

that the person obligated to deposit the 

investments has undertaken to deliver 

the investment assets and/or cash as 

soon as possible and such undertaking 

is secured by the delivery and 

maintenance of collateral consisting of 

cash or cash equivalents satisfactory to 

the issuer of the Units which underlie 

the option as described in the Units’ 

prospectus.21 The Exchange represents 

that, at minimum, AAAU satisfies Cboe 

Rule 4.3.06(b)(2).22

The Exchange states that AAAU also 

will be subject to the Exchange’s 

continued listing requirements, set forth 

in Cboe Rule 4.4.06, for ETFs deemed 

appropriate for options trading pursuant 

to Cboe Rule 4.3.06.23 Cboe Rule 4.4.06 

provides that Units that were initially 

approved for options trading pursuant 

to Cboe Rule 4.3.06 shall be deemed not 

to meet the requirements for continued 

approval, and the Exchange shall not 

open for trading any additional series of 

option contracts of the class covering 

such Units, if the Units cease to be an 

NMS stock or the Units are halted from 

trading in their primary market.24

Additionally, options on Units may be 

subject to the suspension of opening 

transactions in any of the following 

circumstances: (1) In the case of options 

covering Units approved for trading 

under Cboe Rule 4.3.06(b)(1), in 

accordance with the terms of paragraphs 

(a), (b), and (c) of Cboe Rule 4.4.01; (2) 

in the case of options covering Units 

approved for trading under Cboe Rule 


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25See id. 

26See id. See also Cboe Rule 4.2 (providing that 

the rights and obligations of holders and writers 

shall be as set forth in the Rules of The Options 

Clearing Corporation (‘‘OCC’’)); Cboe Equity 

Options Product Specifications (March 23, 2022) 

available at https://www.cboe.com/exchange_

traded_stock/equity_options_spec/ 

?msclkid=8079efbbaaf111ec83b46e77a2984348; 

OCC Rules, Chapter VIII (governing exercise and 

assignment) and Chapter IX (governing the 

discharge of delivery and payment obligations 

arising out of the exercise of physically-settled 

stock option contracts). 

27See Notice, supra note 3, 87 FR at 20903 n. 11; 

see also Cboe Rule 4.5(b). 

28See Notice, supra note 3, 87 FR at 20903. The 

weekly listing program is known as the Short Term 

Option Series Program and is described within 

Cboe Rule 4.5(d). See id. at n.12. 

29See Notice, supra note 3, 87 FR at 20903; see 

also Cboe Rule 4.5(e). 

30See Notice, supra note 3, 87 FR at 20903. 

31See id.; see also Cboe Rule 4.5(f). 

32See Notice, supra note 3, 87 FR at 20903. The 

Exchange notes that for options listed pursuant to 

the Short Term Option Series Program, Rule 

4.5(d)(5) specifically sets forth intervals between 

strike prices on Short Term Option Series. See id. 

at n. 15. 

33See Notice, supra note 3, 87 FR at 20903; see 

also Cboe Rule 5.4. The Exchange states that, if 

options on AAAU are eligible to participate in the 

Penny Interval Program, the minimum increment 

will be $0.01 below $3.00 and $0.50 above $3.00. 

See Notice, supra note 3, 87 FR at 20903 n. 20. 

34See Notice, supra note 3, 87 FR at 20903. 

35See id. 

36See id. 

37See Notice, supra note 3, 87 FR at 20903 n. 21. 

38See Notice, supra note 3, 87 FR at 20903. 

39See id. 

40See Notice, supra note 3, 87 FR at 20903–04. 

41The purpose of the ISG is to provide a 

framework for the sharing of information and the 

coordination of regulatory efforts among exchanges 

trading securities and related products to address 

potential intermarket manipulations and trading 

abuses. See https://isgportal.org/. 

42See Notice, supra note 3, 87 FR at 20904. 

43See id. 

44See id. 

45See Notice, supra note 3, 87 FR at 20902. The 

Exchange states that these ETFs were renamed in 

2018. See id. 

46See id. 

47 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

4.3.06(b)(2), following the initial twelvemonth period beginning upon the 

commencement of trading in the Units 

on a national securities exchange and 

are defined [sic] as an NMS stock, there 

are fewer than 50 record and/or 

beneficial holders of such Units for 30 

or more consecutive trading days; (3) 

the value of the index or portfolio of 

securities, non-U.S. currency, or 

portfolio of commodities including 

commodity futures contracts, options on 

commodity futures contracts, swaps, 

forward contracts and/or options on 

physical commodities and/or Financial 

Instruments and Money Market 

Instruments on which the Units are 

based is no longer calculated or 

available; or (4) such other event occurs 

or condition exists that in the opinion 

of the Exchange makes further dealing 

in such options on the Exchange 

inadvisable.25

AAAU options will be physicallysettled contracts with American-style 

exercise.26 The Exchange states that, 

consistent with Cboe Rule 4.5, which 

governs the opening of options series on 

a specific underlying security (including 

ETFs), the Exchange will open at least 

one expiration month for options on 

AAAU 27 and may also list series of 

options on AAAU for trading on a 

weekly 28 or quarterly 29 basis.30 The 

Exchange states that it may also list 

long-term equity option series 

(‘‘LEAPS’’) that expire from 12 to 180 

months from the time they are listed.31

The Exchange states that, pursuant to 

Rule 4.5.07, which governs strike prices 

of series of options on Units, the 

interval between strike prices for series 

of options on AAAU will be $1 or 

greater where the strike price is $200 or 

less and $5.00 or greater where the 

strike price is greater than $200.32 The 

Exchange states that, pursuant to Cboe 

Rule 5.4, where the price of a series of 

AAAU options is less than $3.00 the 

minimum increment will be $0.05, and 

where the price is $3.00 or higher, the 

minimum increment will be $0.10.33

The Exchange states that any and all 

new series of AAAU options that the 

Exchange lists will be consistent and 

comply with the expirations, strike 

prices and minimum increments set 

forth in Cboe Rules 4.5 and 5.4, as 

applicable.34

The Exchange states that position and 

exercise limits for options on ETFs, 

including options on AAAU, are 

determined pursuant to Cboe Rules 8.30 

and 8.32, respectively.35 The Exchange 

states that position and exercise limits 

for ETF options vary according to the 

number of outstanding shares and the 

trading volumes of the underlying ETF 

over the past six months, where the 

largest in capitalization and the most 

frequently traded ETFs have an option 

position and exercise limit of 250,000 

contracts (with adjustments for splits, 

re-capitalizations, etc.) on the same side 

of the market, and smaller capitalization 

ETFs have position and exercise limits 

of 200,000, 75,000, 50,000 or 25,000 

contracts (with adjustments for splits, 

re-capitalizations, etc.) on the same side 

of the market.36 The Exchange states 

that, given AAAU volume over the 

previous six months, the Exchange 

anticipates that upon initial listing, 

AAAU options will fall into the position 

limit bucket of 75,000 contracts.37 The 

Exchange further notes that Cboe Rule 

10.3, which governs margin 

requirements applicable to the trading 

of all options on the Exchange, 

including options on ETFs, will also 

apply to the trading of AAAU options.38

The Exchange represents that the 

same surveillance procedures applicable 

to all other options on other Units 

currently listed and traded on the 

Exchange will apply to options on 

AAAU, and that it has the necessary 

systems capacity to support the new 

option series.39 The Exchange states it 

believes that its existing surveillance 

and reporting safeguards are designed to 

deter and detect possible manipulative 

behavior which might potentially arise 

from listing and trading ETF options, 

including AAAU options, as 

proposed.40 Also, the Exchange states it 

may obtain information from the CME 

Group New York Mercantile Exchange, 

Inc. (‘‘NYMEX’’) (a member of the 

Intermarket Surveillance Group 

(‘‘ISG’’)) 41 related to any financial 

instrument that is based, in whole or in 

part, upon an interest in or performance 

of gold.42

The Exchange represents that it has 

also analyzed its capacity and believes 

the Exchange and OPRA have the 

necessary systems capacity to handle 

the additional traffic associated with the 

listing of new series that may result 

from the introduction of options on 

AAAU, up to the number of expirations 

currently permissible under its rules.43

The Exchange believes that because the 

proposal is limited to one class, any 

additional traffic that may be generated 

from the introduction of AAAU options 

will be manageable.44 The Exchange 

also proposes to amend Cboe Rule 

4.3.06(a)(4) to update the names of the 

‘‘ETFS Silver Trust,’’ the ‘‘ETFS Gold 

Trust,’’ the ‘‘ETFS Palladium Trust’’ and 

the ‘‘ETFS Platinum Trust’’ to the 

‘‘Aberdeen Standard Physical Silver 

Trust,’’ the ‘‘Aberdeen Standard 

Physical Gold Trust,’’ the ‘‘Aberdeen 

Standard Physical Palladium Trust,’’ 

and the ‘‘Aberdeen Standard Physical 

Platinum Trust,’’ respectively,45 and 

make a non-substantive change to the 

rule to replace superfluous commas 

with conjunctions.46

III. Discussion and Commission 

Findings 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 47 and, in 

particular, the requirements of Section 6 


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48 15 U.S.C. 78f. 

49 15 U.S.C. 78f(b)(5). 

50See e.g., Securities Exchange Act Release No. 

59055 (Dec. 4, 2008), 73 FR 75148 (Dec. 10, 2008) 

(approving proposals to list and trade options on 

IAU and the iShares Silver Trust); Securities 

Exchange Act Release No. 57894 (May 30, 2008), 73 

FR 32061 (Jun. 5, 2008) (approving proposals to list 

and trade options on GLD); and Securities Exchange 

Act Release No. 61483 (Feb. 3, 2010), 75 FR 6753 

(Feb. 10, 2010) (approving proposals to list and 

trade options on the ETFS Gold Trust and ETFS 

Silver Trust). 

51See Notice, supra note 3, at 20904. 

52 15 U.S.C. 78f(b)(1). 

53See FINRA Rule 5310. 

54See Cboe Rule 9.9 and Rule 9.15. 

55See Cboe Rule 9.3. 

56See Chapter 5 of Cboe’s Rules. 

57 17 CFR 242.600. 

58See Cboe Rule 4.3(a); see also supra note 19. 

59See Cboe Rule 4.3.06(b)(1). See also Cboe Rule 

4.3.01 (providing guidelines established by the 

Board of Directors to be considered by the Exchange 

in evaluating potential underlying securities for 

Exchange option transactions). 

60See Cboe Rule 4.3.06(b)(2). The Exchange 

represents that, at minimum, the AAAU satisfies 

this initial listing criteria. See Notice, supra note 3, 

87 FR at 20903. 

61See Cboe Rule 4.4.06. 

62See Notice, supra note 3, 87 FR at 20903. 

63See id. 

64 15 U.S.C. 78s(b)(2). 

65 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

of the Act.48 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,49 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in 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. 

The Commission believes that the 

proposal to list and trade options on 

AAAU on the Exchange will provide 

investors with the ability to transact in 

AAAU options in a listed market 

environment, which could provide 

investors with heightened contra-party 

creditworthiness due to the role of OCC 

as issuer and guarantor of all listed 

options, as well as increased 

transparency and enhanced price 

discovery. Moreover, the Exchange 

already lists options on other gold-based 

ETFs, which, as described above, are 

trusts structured in substantially the 

same manner as AAAU,50 and the 

Exchange represents that it has not 

identified any issues with the continued 

listing and trading of the gold-backed 

ETF options that it currently lists for 

trading.51

As a national securities exchange, 

Cboe is required under Section 6(b)(1) of 

the Act 52 to enforce compliance by its 

members, and persons associated with 

its members, with the provisions of the 

Act, Commission rules and regulations 

thereunder, and its own rules. In 

addition, brokers that trade AAAU 

options also will be subject to best 

execution obligations and FINRA 

rules.53 Applicable exchange rules also 

require that customers receive 

appropriate disclosure before trading 

AAAU Options.54 Further, brokers 

opening accounts and recommending 

options transactions must comply with 

relevant customer suitability 

standards.55

Options on AAAU will trade as 

options under the trading rules of the 

Exchange.56 AAAU options must also 

satisfy Exchange initial listing and 

continued listing standards applicable 

to options on all Units, including the 

gold-backed commodity ETFs already 

approved for options trading on the 

Exchange. A security on which options 

may be listed and traded on the 

Exchange must be duly registered and 

be an ‘‘NMS stock’’ as defined under 

Rule 600 of Regulation NMS 57 and be 

characterized by a substantial number of 

outstanding shares which are widely 

held and actively traded.58

Additionally, Units must meet either (1) 

the criteria and guidelines under Cboe 

Rule 4.3.01,59 or (2) they must be 

available for creation or redemption 

each business day from or through the 

issuer in cash or in kind at a price 

related to net asset value, and the issuer 

must be obligated to issue Units in a 

specified aggregate number even if some 

or all of the investment assets required 

to be deposited have not been received 

by the issuer, subject to the condition 

that the person obligated to deposit the 

investments has undertaken to deliver 

the investment assets as soon as 

possible and such undertaking is 

secured by the delivery and 

maintenance of collateral consisting of 

cash or cash equivalents satisfactory to 

the issuer, as provided in the respective 

prospectus.60

Series of AAAU options also will be 

subject to the Exchange’s continued 

listing requirements, including 

standards applicable to the underlying 

Trust. If the Units cease to be an NMS 

stock or the Units are halted from 

trading in their primary market, the 

Exchange will deem Units that were 

initially approved for options trading 

pursuant to Cboe Rule 4.3.06 not to 

meet the requirements for continued 

approval, and the Exchange shall not 

open for trading any additional series of 

option contracts of the class covering 

such Units.61

The Exchange represents that its 

existing surveillance and reporting 

safeguards are designed to deter and 

detect possible manipulative behavior 

which might arise from listing and 

trading ETF options, including AAAU 

options.62 The Exchange also represents 

that it has the necessary systems 

capacity to support the new ETF option 

series.63 Additionally, the Commission 

notes that AAAU options will trade in 

the same manner as any other options 

on ETFs, and the same Exchange rules 

that currently govern the listing and 

trading of ETF options, including 

permissible expirations, strike prices 

and minimum increments, and 

applicable position and exercise limits 

and margin requirements, will govern 

the listing and trading of options on 

AAAU. 

Finally, the Commission believes that 

the Exchange’s proposals to make 

grammatical edits to the rule text and 

update the names of certain ETFs in 

Cboe Rule 4.3.06(a)(4) are helpful 

technical changes that add clarity and 

accuracy to the rule text. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,64 that the 

proposed rule change (SR–CBOE–2022– 

009) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.65

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10967 Filed 5–20–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94935; File No. SR–GEMX– 

2022–07] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Nasdaq 

Amended and Restated Certificate of 

Incorporation 

May 17, 2022. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on May 6, 2022, Nasdaq GEMX, LLC 

(‘‘GEMX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 


lotter on DSK11XQN23PROD with NOTICES1