Document ID: SEC-2023-1439-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: The Nasdaq Stock Market, LLC
Posted Date: 2023-12-13T05:00Z

[Federal Register Volume 88, Number 238 (Wednesday, December 13, 2023)]
[Notices]
[Pages 86425-86429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27259]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99102; File No. SR-NASDAQ-2023-051]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Options 4A To Adopt Monthly Options Series

December 7, 2023.
    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 November 29, 2023, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Rules at Options 4A (Options 
Index Rules) to adopt Monthly Options Series.
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/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 Exchange proposes to amend Options 4A (Options Index Rules), 
identical to the rules recently approved for Cboe Exchange, Inc. 
(``Cboe''),\3\ to accommodate the listing of option series that would 
expire at the close of business on the last business day of a calendar 
month (``Monthly Options Series''). Cboe's recently approved rule 
change \4\ introduces Monthly Options Series for indexes and exchange-
traded funds (``ETFs''). This rule change proposes to adopt Monthly 
Options Series for indexes in Options 4A. Nasdaq ISE, LLC (``ISE'') 
will separately file a rule change to proposes to adopt Monthly Options 
Series for ETFs in ISE Options 4. The Exchange's Options 4 rules, which 
govern the ability to transact options on ETFs, incorporate ISE Options 
4 by reference.
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    \3\ See Securities Exchange Act Release No. 98915 (November 13, 
2023), 88 FR 80356 (November 17, 2023) (SR-Cboe-2023-049) (``Cboe 
Approval Order'').
    \4\ Id.
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    The Exchange proposes to define ``Monthly Options Series'' in 
Options 4A, Section 2(l) to mean a series in an options class that is 
approved for listing and trading on the Exchange in which the series is 
opened for trading on any business day and that expires at the close of 
business on the last business day of a calendar month. The Exchange 
proposes to re-letter the subsequent definitions in Options 4A, Section 
2.\5\
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    \5\ The Exchange also proposes to fix an incorrect cross cite to 
the definition of broad-based index in Options 4A, Section 3(b)(1).
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    Pursuant to proposed Options 4A, Section 12(i)(1)(A), the Exchange 
may list Monthly Options Series for up to five currently listed option 
classes that are index options or options on ETFs.\6\ In addition, the 
Exchange may also list Monthly Options Series on any options classes 
that are selected by other securities exchanges that employ a similar 
program under their respective rules.\7\ The Exchange may list 12 
expirations for Monthly Options Series. Monthly Options Series need not 
be for consecutive months; however, the expiration date of a 
nonconsecutive expiration may not be beyond what would be considered 
the last expiration date if the maximum number of expirations were 
listed consecutively.\8\ Other expirations in the same class are not 
counted as part of the maximum numbers of Monthly Options Series 
expirations for a class.\9\ Monthly Options Series will be P.M.-
settled.\10\
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    \6\ As provided in the proposed Options 4A, Section 12(i)(1)(A), 
the Exchange may list Monthly Options Series for up to five 
currently listed option classes that are index options or options on 
ETFs; the five Monthly Options Series include both index options and 
ETF options in the aggregate.
    \7\ See Cboe Approval Order.
    \8\ The Exchange notes this provision considers consecutive 
monthly listings. In other words, as other expirations (such as 
Quarterly Options Series) are not counted as part of the maximum, 
those expirations would not be considered when considering when the 
last expiration date would be if the maximum number were listed 
consecutively. For example, if it is January 2024 and the Exchange 
lists Quarterly Options Series in class ABC with expirations in 
March, June, September, December, and the following March, the 
Exchange could also list Monthly Options Series in class ABC with 
expirations in January, February, April, May, July, August, October, 
and November 2024 and January and February of 2025. This is because, 
if Quarterly Options Series, for example, were counted, the Exchange 
would otherwise never be able to list the maximum number of Monthly 
Options Series. This is consistent with the listing provisions for 
Quarterly Options Series, which permit calendar quarter expirations. 
The need to list series with the same expiration in the current 
calendar year and the following calendar year (whether Monthly or 
Quarterly expiration) is to allow market participants to execute 
one-year strategies pursuant to which they may roll their exposures 
in the longer-dated options (e.g., January 2025) prior to the 
expiration of the nearer-dated option (e.g., January 2024).
    \9\ See proposed Options 4A, Section 12(i)(1)(B).
    \10\ See proposed Options 4A, Section 12(i)(1)(C).
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    The strike price of each Monthly Options Series will be fixed at a 
price per share, with at least two, but no more than five, strike 
prices above and at least two, but no more than five, strike prices 
below the value of the underlying index or price of the underlying 
security at about the time that a Monthly Options Series is opened for 
trading on the Exchange. The Exchange will list strike prices for 
Monthly Options Series that are reasonably related to the current price 
of the underlying security or current index value of the underlying 
index to which such series relates at about the time such series of 
options is first opened for trading on the Exchange. The term 
``reasonably related

[[Page 86426]]

to the current price of the underlying security or index value of the 
underlying index'' means that the exercise price is within 30% of the 
current underlying security price or index value.\11\ Additional 
Monthly Options Series of the same class may be open for trading on the 
Exchange when the Exchange deems it necessary to maintain an orderly 
market, to meet customer demand, or when the market price of the 
underlying security moves substantially from the initial exercise price 
or prices. To the extent that any additional strike prices are listed 
by the Exchange, such additional strike prices will be within 30% above 
or below the closing price of the underlying index or security on the 
preceding day. The Exchange may also open additional strike prices of 
Monthly Options Series that are more than 30% above or below the 
current price of the underlying security, provided that demonstrated 
customer interest exists for such series, as expressed by 
institutional, corporate, or individual customers or their brokers. 
Market Makers trading for their own account will not be considered when 
determining customer interest under this provision. The opening of the 
new Monthly Options Series will not affect the series of options of the 
same class previously opened.\12\ The interval between strike prices on 
Monthly Options Series will be the same as the interval for strike 
prices for series in that same options class that expire in accordance 
with the normal monthly expiration cycle.\13\
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    \11\ See proposed Options 4A, Section 12(i)(1)(D). The Exchange 
notes this proposed provision is consistent with the initial series 
provision for the Quarterly Options Series program in Options 4A, 
Section 12(g).
    \12\ See proposed Options 4A, Section 12(i)(1)(E).
    \13\ See proposed Options 4A, Section 12(i)(1)(F) (permissible 
strike prices for index options).
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    By definition, Monthly Options Series can never expire in the same 
week as a standard expiration series (which expire on the third Friday 
of a month) in the same class expires. The same, however, is not the 
case with regards to Short Term Option Series \14\ or Quarterly Options 
Series. Therefore, to avoid any confusion in the marketplace, the 
Exchange proposes to amend Options 4A, Section 12(h)(1)(B) to provide 
the Exchange will not list a Short Term Option Series in a class on a 
date on which a Monthly Options Series or Quarterly Options Series 
expires.\15\ Similarly, proposed Options 4A, Section 12(i)(1)(B) 
provide that no Monthly Options Series may expire on a date that 
coincides with an expiration date of a Quarterly Options Series in the 
same index or ETF class. In other words, the Exchange will not list a 
Short Term Option Series on an index if a Monthly Options Series on 
that index were to expire on the same date, nor will the Exchange list 
a Monthly Options Series on an index if a Quarterly Options Series on 
that index were to expire on the same date to prevent the listing of 
series with concurrent expirations.\16\
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    \14\ The Exchange proposes non-substantive changes to clarify in 
Options 4A, Section 12(a)(3) that index options have expiration 
months and weeks, and that index options contracts may expire at 
three (3)-month intervals, in consecutive months or in consecutive 
weeks (as specified by class in Options 4A, Section 12). This is 
merely a clarification, as Options 4A, Section 12(h) currently 
permits weekly expirations.
    \15\ The Exchange also proposes to make non-substantive changes 
to Options 4A, Section 12(h)(1) and Options 4A, Section 12(h)(1)(B) 
to reference standard options series and change current references 
to ``monthly options series'' to ``standard expiration options 
series'' (i.e., series that expire on the third Friday of a month), 
to eliminate potential confusion. The current references to 
``monthly options series'' are intended to refer to those series 
that expire on the third Friday of a month, which are generally 
referred to in the industry as standard expirations.
    \16\ The Exchange notes this would not prevent the Exchange from 
listing a P.M.-settled Monthly Options Series on an index with the 
same expiration date as an A.M.-settled Short Term Option Series on 
the same index, both of which may expire on a Friday. In other 
words, the Exchange may list a P.M-settled Monthly Options Series on 
an index concurrent with an A.M.-settled Short Term Option Series on 
that index and both of which expire on a Friday. The Exchange 
believes this concurrent listing would provide investors with yet 
another hedging mechanism and is reasonable given these series would 
not be identical (unlike if they were both P.M-settled).
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    With respect to Monthly Options Series added pursuant to proposed 
Options 4A, Section 12(i)(1)(A) through (F), the Exchange will, on a 
monthly basis, review series that are outside a range of five strikes 
above and five strikes below the current price of the underlying index 
or security, and delist series with no open interest in both the put 
and the call series having a: (i) strike higher than the highest strike 
price with open interest in the put and/or call series for a given 
expiration month; and (ii) strike lower than the lowest strike price 
with open interest in the put and/or call series for a given expiration 
month pursuant to Options 4A, Section 12(i)(1)(G)(i). Notwithstanding 
this delisting policy, customer requests to add strikes and/or maintain 
strikes in Monthly Options Series in series eligible for delisting will 
be granted. In connection with this delisting policy, if the Exchange 
identifies series for delisting, the Exchange will notify other options 
exchanges with similar delisting policies regarding eligible series for 
delisting and will work with such other exchanges to develop a uniform 
list of series to be delisted, so as to ensure uniform series delisting 
of multiply listed Monthly Options Series.\17\
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    \17\ See Options 4A, Section 12(i)(1)(G)(iii).
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    The Exchange believes that Monthly Options Series will provide 
investors with another flexible and valuable tool to manage risk 
exposure, minimize capital outlays, and be more responsive to the 
timing of events affecting the securities that underlie option 
contracts. The Exchange believes limiting Monthly Options Series to 
five classes will ensure the addition of these new series will have a 
negligible impact on the Exchange's and the Options Price Reporting 
Authority's (``OPRA's'') quoting capacity. The Exchange represents it 
has the necessary systems capacity to support new options series that 
will result from the introduction of Monthly Options Series.
    The Exchange notes that Options 4A, Section 6 (Position Limits for 
Broad-Based Index Options) and Options 4A, Section 7 (Position Limits 
for Industry and Micro-Narrow Based Index Options) will apply to 
Monthly Options Series. In Options 4A, Section 6(c) and Options 4A, 
Section 7(c), Monthly Options Series will be aggregated with positions 
in options contracts on the same underlying security or index.\18\ This 
is consistent with how position (and exercise) limits are currently 
imposed on series with other expirations (Short Term Option Series and 
Quarterly Options Series). To that end, the Exchange proposes to make 
this clear by adding a sentence to Options 4A, Sections 6(c) and 7(c) 
that provides: ``Positions in Short Term Options Series, Monthly 
Options Series and Quarterly Options Series shall be aggregated with 
positions in options contracts of the same index.'' \19\ Therefore, 
positions in options within class of index, regardless of their 
expirations, would continue to be subject to existing position (and 
exercise) limits. The Exchange believes this will address potential 
manipulative schemes and adverse market impacts surrounding the use of 
options.
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    \18\ Pursuant to Options 4A, Section 10, exercise limits for 
index option contracts shall be equivalent to the position limits 
prescribed for options contracts with the nearest expiration date in 
Options 4A, Section 6 or Section 7.
    \19\ This additional rule text will further clarify the current 
rule text for the existing Short Term Option Series and Quarterly 
Options Series programs in Options 4A, Section 12.
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    The Exchange also represents its current surveillance programs will 
apply to Monthly Options Series and will properly monitor trading in 
the proposed Monthly Options Series. The Exchange currently lists 
Quarterly Options Series in certain index and ETF

[[Page 86427]]

classes, which expire at the close of business at the end of four 
calendar months (i.e., the end of each calendar quarter), and has not 
experienced any market disruptions nor issues with capacity. The 
Exchange's surveillance programs currently in place to support and 
properly monitor trading in these Quarterly Options Series, as well as 
Short Term Option Series and standard expiration series, will apply to 
the proposed Monthly Options Series. The Exchange believes its 
surveillances continue to be designed to deter and detect violations of 
its Rules, including position and exercise limits and possible 
manipulative behavior, and these surveillances will apply to Monthly 
Options Series that the Exchange determines to list for trading. 
Ultimately, the Exchange does not believe the proposed rule change 
raises any unique regulatory concerns because existing safeguards--such 
as position and exercise limits (and the aggregation of options 
overlying the same index) and reporting requirements--would continue to 
apply.
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.\20\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \21\ 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. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \22\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(5).
    \22\ Id.
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    In particular, the Exchange believes the introduction of Monthly 
Options Series will remove impediments to and perfect the mechanism of 
a free and open market and a national market system by expanding 
hedging tools available to market participants. The Exchange believes 
the proposed monthly expirations will allow market participants to 
transact in the index options listed pursuant to the proposed rule 
change based on their timing as needed and allow them to tailor their 
investment and hedging needs more effectively. Further, the Exchange 
believes the availability of Monthly Options Series would protect 
investors and the public interest by providing investors with more 
flexibility to closely tailor their investment and hedging decisions in 
these options, thus allowing them to better manage their risk exposure.
    The Exchange believes the Quarterly Options Series Program has been 
successful to date and the proposed Monthly Options Series program 
simply expands the ability of investors to hedge risk against market 
movements stemming from economic releases or market events that occur 
at months' ends in the same way the Quarterly Options Series Program 
has expanded the landscape of hedging for quarter-end news. Monthly 
Options Series will also complement Short Term Option Series, which 
allow investors to hedge risk against events that occur throughout a 
month. The Exchange believes the availability of additional expirations 
should create greater trading and hedging opportunities for investors, 
as well as provide investors with the ability to tailor their 
investment objectives more effectively.
    The Exchange notes that the proposed terms of Monthly Options 
Series, including the limitation to five index and ETF option classes, 
are substantively the same as the current terms of Quarterly Options 
Series.\23\ Quarterly Options Series expire on the last business day of 
a calendar quarter, which is the last business day of every third 
month. The proposed Monthly Options Series would fill the gaps between 
Quarterly Options Series expirations by permitting series to expire on 
the last business day of every month, rather than every third month. 
The proposed Monthly Options Series may be listed in accordance with 
the same terms as Quarterly Options Series, including permissible 
strikes. As is the case with Quarterly Options Series, no Short Term 
Option Series may expire on the same day as a Monthly Options Series. 
Similarly, as proposed, no Monthly Options Series may expire on the 
same day as a Quarterly Options Series. The Exchange believes 
preventing listing series with concurrent expirations in a class will 
eliminate potential investors confusion and thus protect investors and 
the public interest. Given that the Quarterly Options Series the 
Exchange currently lists are essentially Monthly Options Series that 
can expire at the end of only certain calendar months, the Exchange 
believes it is reasonable to list Monthly Options Series in accordance 
with the same terms, as it will promote just and equitable principles 
of trade. The Exchange believes limiting Monthly Options Series to five 
classes will ensure the addition of these new series will have a 
negligible impact on the Exchange's and OPRA's quoting capacity. The 
Exchange represents it has the necessary systems capacity to support 
new options series that will result from the introduction of Monthly 
Options Series.
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    \23\ Compare proposed Options 4A, Section 12(i) to Options 4A, 
Section 12(g).
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    The Exchange further believes the proposed rule change regarding 
the treatment of Monthly Options Series with respect to determining 
compliance with position and exercise limits is designed to prevent 
fraudulent and manipulative acts and practices and promote just and 
equitable principles of trade. Monthly Options Series will be 
aggregated with options overlying the same index for purposes of 
compliance with position (and exercise) limits, which is consistent 
with how position (and exercise) limits are currently imposed on series 
with other expirations (Short Term Option Series, and Quarterly Options 
Series).\24\ Therefore, options positions within index option classes 
for which Monthly Options Series are listed, regardless of their 
expirations, would continue to be subject to existing position (and 
exercise) limits. The Exchange believes this will address potential 
manipulative schemes and adverse market impacts surrounding the use of 
options. The Exchange also represents its current surveillance programs 
will apply to Monthly Options Series and will properly monitor trading 
in the proposed Monthly Options Series. The Exchange currently trades 
Quarterly Options Series in certain index classes, which expire at the 
close of business at the end of four calendar months (i.e., the end of 
each calendar quarter), and has not experienced any market disruptions 
nor issues with capacity. The

[[Page 86428]]

Exchange's surveillance programs currently in place to support and 
properly monitor trading in these Quarterly Options Series, as well as 
Short Term Option Series and standard expiration series, will apply to 
the proposed Monthly Options Series. The Exchange believes its 
surveillances continue to be designed to deter and detect violations of 
its Rules, including position and exercise limits and possible 
manipulative behavior, and these surveillances will apply to Monthly 
Options Series that the Exchange determines to list for trading. 
Ultimately, the Exchange does not believe the proposed rule change 
raises any unique regulatory concerns because existing safeguards--such 
as position and exercise limits (and the aggregation of options 
overlying the same index) and reporting requirements--would continue to 
apply.
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    \24\ See Cboe Approval Order; see also Options 4A, Section 6 
regarding position limits for broad-based index options and Options 
4A, Section 7, Position Limits for Industry and Micro-Narrow Based 
Index Options. Pursuant to Options 4A, Section 10, exercise limits 
for index option contracts shall be equivalent to the position 
limits prescribed for options contracts with the nearest expiration 
date in Options 4A, Section 6 or Section 7.
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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 believe 
the proposed rule change to list Monthly Options Series will impose any 
burden on intramarket competition that is not necessary or appropriate 
in furtherance of the purposes of the Act, as any Monthly Options 
Series the Exchange lists for trading will be available in the same 
manner for all market participants who wish to trade such options. The 
Exchange notes the proposed terms of Monthly Options Series, including 
the limitation to five index and ETF option classes, are substantively 
the same as the current terms of Quarterly Options Series.\25\ 
Quarterly Options Series expire on the last business day of a calendar 
quarter, which is the last business day of every third month, making 
the concept of Monthly Options Series in a limited number of index 
options not novel. The proposed Monthly Options Series will fill the 
gaps between Quarterly Options Series expirations by permitting series 
to expire on the last business day of every month, rather than every 
third month. The proposed Monthly Options Series may be listed in 
accordance with the same terms as Quarterly Options Series, including 
permissible strikes.\26\ Monthly Options Series will trade on the 
Exchange in the same manner as other options in the same class.
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    \25\ See supra note 23.
    \26\ See supra note 11.
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    The Exchange does not believe the proposed rule change to list 
Monthly Options Series will impose any burden on intermarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act, as nothing prevents other options exchanges from 
proposing similar rules.\27\ As discussed above, the proposed rule 
change would permit listing of Monthly Options Series in five index and 
ETF options, as well as any other classes that other exchanges may list 
under similar programs. To the extent that the availability of Monthly 
Options Series makes the Exchange a more attractive marketplace to 
market participants at other exchanges, market participants are free to 
elect to become market participants on the Exchange.
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    \27\ See Cboe Approval Order.
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    The Exchange believes that the proposed rule change may relieve any 
burden on, or otherwise promote, competition. Similar to Short Term 
Option Series and Quarterly Options Series, the Exchange believes the 
introduction of Monthly Options Series will not impose an undue burden 
on competition. The Exchange believes that it will, among other things, 
expand hedging tools available to market participants. The Exchange 
believes Monthly Options Series will allow market participants to 
purchase options based on their timing as needed and allow them to 
tailor their investment and hedging needs more effectively.
    The Exchange does not believe the proposed rule change regarding 
aggregation of positions for purposes of determining compliance with 
position (and exercise) limits will impose any burden on intramarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act, because it will apply in the same manner to all 
market participants. The Exchange proposes to apply position (and 
exercise) limits to Monthly Options Series in the same manner it 
applies position limits to series with other expirations (Short Term 
Option Series and Quarterly Options Series). Therefore, positions in 
options in a class of index options, regardless of their expirations, 
would continue to be subject to existing position (and exercise) 
limits. Additionally, the Exchange does not believe this proposed rule 
change will impose any burden on intermarket competition that is not 
necessary or appropriate in furtherance of the purposes of the Act, 
because it will address potential manipulative schemes and adverse 
market impacts surrounding the use of options.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \28\ and Rule 19b-4(f)(6) thereunder.\29\ 
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 \30\ and subparagraph (f)(6) of 
Rule 19b-4 thereunder.\31\
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    \28\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \29\ 17 CFR 240.19b-4(f)(6).
    \30\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \31\ 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \32\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \33\ 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 requested that the Commission waive the 30-day operative delay so 
that the Exchange may list Monthly Options Series immediately, which 
the Exchange believes will benefit investors by promoting competition 
in Monthly Options Series. The Exchange notes that its proposal is 
substantively identical to the proposal submitted by Cboe for its 
Monthly Options Series program.\34\ The Commission believes that the 
proposed rule change presents no novel issues and that waiver of the 
30-day operative delay is consistent with the protection of investors 
and the public interest. Accordingly, the Commission hereby waives the 
operative delay and

[[Page 86429]]

designates the proposed rule change operative upon filing.\35\
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    \32\ 17 CFR 240.19b-4(f)(6).
    \33\ 17 CFR 240.19b-4(f)(6)(iii).
    \34\ See Cboe Approval Order, supra note 3.
    \35\ For 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).
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    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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-NASDAQ-2023-051 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-NASDAQ-2023-051. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-NASDAQ-2023-051 and should 
be submitted on or before January 3, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\36\
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    \36\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-27259 Filed 12-12-23; 8:45 am]
BILLING CODE 8011-01-P