Document ID: SEC-2022-1538-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange LLC
Posted Date: 2022-11-25T05:00Z

[Federal Register Volume 87, Number 226 (Friday, November 25, 2022)]
[Notices]
[Pages 72572-72577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25666]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96355; File No. SR-BOX-2022-29]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend IM-5050-
6 (Short Term Option Series Program)

November 18, 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 November 16, 2022, BOX Exchange LLC (the ``Exchange'') 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 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 IM-5050-6 (Short Term Option Series 
Program). The text of the proposed rule change is available from the 
principal office of the Exchange, at the Commission's Public Reference 
Room and also on the Exchange's internet website at https://rules.boxexchange.com/rulefilings.

[[Page 72573]]

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 self-regulatory organization 
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 self-regulatory organization 
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 IM-5050-6 (Short Term Option Series 
Program). Specifically, the Exchange proposes to amend the Short Term 
Option Series Rules to: (1) limit the number of Short Term Option 
Expiration Dates for options on SPDR S&P 500 ETF Trust (SPY), the 
INVESCO QQQ Trust SM, Series 1 (QQQ), and iShares Russell 2000 ETF 
(IWM) from five to two expirations for Monday and Wednesday 
expirations; and (2) expand the Short Term Option Series program to 
permit the listing and trading of options series with Tuesday and 
Thursday expirations for options on SPY and QQQ listed pursuant to the 
Short Term Option Series Program, subject to the same proposed 
limitation of two expirations. The Exchange also proposes to amend Rule 
100(a)(66) which defines a Short Term Option Series. This is a 
competitive filing that is based on a proposal recently submitted by 
Nasdaq ISE, LLC (``Nasdaq ISE'') and approved by the Commission.\3\
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    \3\ See Securities Exchange Act Release No. 96281 (November 9, 
2022) (Order Approving SR-ISE-2022-18).
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Curtail Short Term Option Expiration Dates
    Currently, after an option class has been approved for listing and 
trading on the Exchange, the Exchange may open for trading on any 
Thursday or Friday that is a business day (``Short Term Option Opening 
Date'') series of options on that class that expire at the close of 
business on each of the next five Fridays that are business days and 
are not Fridays in which monthly options series or Quarterly Options 
Series expire (``Short Term Option Expiration Dates''). The Exchange 
may have no more than a total of five Short Term Option Expiration 
Dates not including any Monday or Wednesday SPY, QQQ, and IWM 
Expirations. Further, if the Exchange is not open for business on the 
respective Thursday or Friday, the Short Term Option Opening Date will 
be the first business day immediately prior to that respective Thursday 
or Friday. Similarly, if the Exchange is not open for business on a 
Friday, the Short Term Option Expiration Date will be the first 
business day immediately prior to that Friday.
    Today, with respect to Wednesday SPY, QQQ, and IWM Expirations, the 
Exchange may open for trading on any Tuesday or Wednesday that is a 
business day series of options on SPY, QQQ, and IWM to expire on any 
Wednesday of the month that is a business day and is not a Wednesday in 
which Quarterly Options Series expire (``Wednesday SPY Expirations,'' 
``Wednesday QQQ Expirations,'' and ``Wednesday IWM Expirations''). With 
respect to Monday SPY, QQQ, and IWM Expirations, the Exchange may open 
for trading on any Friday or Monday that is a business day series of 
options on the SPY, QQQ, or IWM to expire on any Monday of the month 
that is a business day and is not a Monday in which Quarterly Options 
Series expire (``Monday SPY Expirations,'' ``Monday QQQ Expirations,'' 
and ``Monday IWM Expirations''), provided that Monday SPY Expirations, 
Monday QQQ Expirations, and Monday IWM Expirations that are listed on a 
Friday must be listed at least one business week and one business day 
prior to the expiration. The Exchange may list up to five consecutive 
Wednesday SPY Expirations, Wednesday QQQ Expirations, and Wednesday IWM 
Expirations and five consecutive Monday SPY Expirations, Monday QQQ 
Expirations, and Monday IWM Expirations at one time; the Exchange may 
have no more than a total of five each of Wednesday SPY Expirations, 
Wednesday QQQ Expirations, and Wednesday IWM Expirations and a total of 
five each of Monday SPY Expirations, Monday QQQ Expirations, and Monday 
IWM Expirations. Monday and Wednesday SPY Expirations, Monday and 
Wednesday QQQ Expirations, and Monday and Wednesday IWM Expirations 
will be subject to the provisions of IM-5050-6.
Proposal
    At this time, the Exchange proposes to curtail the number of Short 
Term Option Expiration Dates from five to two \4\ for SPY, QQQ and IWM 
for Monday and Wednesday Expirations, as well as the proposed Tuesday 
and Thursday Expirations in SPY and QQQ (``Short Term Option Daily 
Expirations'').
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    \4\ The Exchange proposes to list the two front months for Short 
Term Option Daily Expirations.
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    The Exchange proposes to create a new category of Short Term Option 
Expirations Dates called ``Short Term Option Daily Expirations'' which 
will only permit two Short Term Option Expiration Dates for each of 
Monday, Tuesday, Wednesday, and Thursday expirations at one time. The 
Exchange proposes to include a table, labelled ``Table 1'', within IM-
5050-6(a) which specifies each symbol that qualifies as a Short Term 
Option Daily Expiration. The table would note the number of expirations 
for each symbol as well as expiration days. The Exchange proposes to 
include Monday and Wednesday expirations for SPY, QQQ, and IWM and 
Tuesday and Thursday expirations for SPY and QQQ and list the number of 
expirations as ``2'' for these symbols. The Exchange's proposal to 
permit Tuesday and Thursday expirations for options on SPY and QQQ 
listed pursuant to the Short Term Option Series Program is explained 
below in more detail. In the event Short Term Option Daily Expirations 
expire on the same day in the same class as a monthly options series or 
a Quarterly Options Series, the Exchange would skip that week's listing 
and instead list the following week; the two weeks of Short Term Option 
Expiration Dates would therefore not be consecutive. Specifically, the 
Exchange proposes to state within IM-5050-6(a),

    In addition to the above, BOX may open for trading series of 
options on the symbols provided in Table 1 below that expire at the 
close of business on each of the next two Mondays, Tuesdays, 
Wednesdays, and Thursdays, respectively, that are business days and 
are not business days in which monthly options series or Quarterly 
Options Series expire (``Short Term Option Daily Expirations''). BOX 
may have no more than a total of two Short Term Option Daily 
Expirations for each of Monday, Tuesday, Wednesday, and Thursday 
expirations at one time. Short Term Option Daily Expirations would 
be subject to IM-5050-6.

SPY, QQQ, and IWM Friday expirations and other option symbols expiring 
on a Friday that are not noted in Table 1 will continue to have a total 
of five Short Term Option Expiration Dates provided those Friday 
expirations are not Fridays in which monthly options series or 
Quarterly Options Series expire (``Friday Short Term Option Expiration 
Dates''). These expirations would be

[[Page 72574]]

referred to as ``Short Term Option Weekly Expirations'' to distinguish 
them from the proposed expirations that would be subject to Short Term 
Option Daily Expirations. The Exchange proposes to add rule text to IM-
5050-6(a) which states that Monday Short Term Option Expiration Dates, 
Tuesday Short Term Option Expiration Dates, Wednesday Short Term Option 
Expiration Dates, and Thursday Short Term Option Expiration Dates, 
together with Friday Short Term Option Expiration Dates, are 
collectively ``Short Term Option Expiration Dates''.\5\
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    \5\ Defining the term ``Short Term Option Expiration Dates'' 
will make clear that this term includes expiration dates for each 
day Short Term Options are listed.
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Tuesday and Thursday Expirations
    At this time, the Exchange proposes to expand the Short Term Option 
Series Program to permit the listing and trading of no more than a 
total of two consecutive Tuesday and Thursday ``Tuesday Short Term 
Option Daily Expirations'' and ``Thursday Short Term Option Daily 
Expirations'' each for SPY and QQQ at one time. Tuesday and Thursday 
Short Term Option Daily Expirations would be subject to IM-5050-6.
    A Short Term Option Series means a series in an option class that 
is approved for listing and trading on the Exchange in which the series 
is opened for trading on any Monday, Tuesday, Wednesday, Thursday or 
Friday that is a business day and that expires on the Monday, Wednesday 
or Friday of the following business week that is a business day, or, in 
the case of a series that is listed on a Friday and expires on a 
Monday, is listed one business week and one business day prior to that 
expiration. If a Tuesday, Wednesday, Thursday or Friday is not a 
business day, the series may be opened (or shall expire) on the first 
business day immediately prior to that Tuesday, Wednesday, Thursday or 
Friday. For a series listed pursuant to this section for Monday 
expiration, if a Monday is not a business day, the series shall expire 
on the first business day immediately following that Monday.
    The Exchange proposes to amend the definition at Rule 100(a)(66) to 
accommodate the listing of options series that expire on Tuesdays and 
Thursdays. Specifically, the Exchange proposes to add Tuesday and 
Thursdays to the permitted expiration days, which currently include 
Monday, Wednesday, and Friday, that it may open for trading.
    The Exchange also proposes corresponding changes within IM-5050-6, 
which sets forth the requirements for SPY and QQQ options that are 
listed pursuant to the Short Term Option Series Program as Short Term 
Option Daily Expirations. Similar to Monday and Wednesday SPY, QQQ, and 
IWM Short Term Option Daily Expirations within IM-5050-6, the Exchange 
proposes that it may open for trading on any Monday or Tuesday that is 
a business day series of options on the symbols provided in Table 1 
that expire at the close of business on each of the next two Tuesdays 
that are business days and are not business days in which monthly 
options series or Quarterly Options Series expire (``Tuesday Short Term 
Option Expiration Date'').
    Likewise, the Exchange proposes that it may open for trading on any 
Wednesday or Thursday that is a business day series of options on 
symbols provided in Table 1 that expire at the close of business on 
each of the next two Thursdays that are business days and are not 
business days in which monthly options series or Quarterly Options 
Series expire (``Thursday Short Term Option Expiration Date'').
    In the event that options on SPY and QQQ expire on a Tuesday or 
Thursday and that Tuesday or Thursday is the same day that a monthly 
option series or Quarterly Options Series expires, the Exchange would 
skip that week's listing and instead list the following week; the two 
weeks would therefore not be consecutive. Today, Monday and Wednesday 
Expirations in SPY, QQQ, and IWM skip the weekly listing in the event 
the weekly listing expires on the same day in the same class as a 
Quarterly Options Series. Currently, there is no rule text provision 
that states that Monday and Wednesday Expirations in SPY, QQQ, and IWM 
skip the weekly listing in the event the weekly listing expires on the 
same day in the same class as a monthly option series. Practically 
speaking, Monday and Wednesday Expirations in SPY, QQQ, and IWM would 
not expire on the same day as a monthly expiration.
    The interval between strike prices for the proposed Tuesday and 
Thursday SPY and QQQ Short Term Option Daily Expirations will be the 
same as those for the current Short Term Option Series for Monday, 
Wednesday and Friday expirations applicable to the Short Term Option 
Series Program.\6\ Specifically, the Tuesday and Thursday SPY and QQQ 
Short Term Option Daily Expirations will have a $0.50 strike interval 
minimum.\7\ As is the case with other equity options series listed 
pursuant to the Short Term Option Series Program, the Tuesday and 
Thursday SPY and QQQ Short Term Option Daily Expiration series will be 
P.M.-settled.
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    \6\ See IM-5050-6(b)(5).
    \7\ Id.
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    Pursuant to Rule 100(a)(66), with respect to the Short Term Option 
Series Program, a Tuesday or Thursday expiration series shall expire on 
the first business day immediately prior to that Tuesday or Thursday, 
e.g., Monday or Wednesday of that week, respectively, if the Tuesday or 
Thursday is not a business day.
    Currently, for each option class eligible for participation in the 
Short Term Option Series Program, the Exchange is limited to opening 
thirty (30) series for each expiration date for the specific class.\8\ 
The thirty (30) series restriction does not include series that are 
open by other securities exchanges under their respective weekly rules; 
the Exchange may list these additional series that are listed by other 
options exchanges.\9\ This thirty (30) series restriction would apply 
to Tuesday and Thursday SPY and QQQ Short Term Option Daily Expiration 
series as well. In addition, the Exchange will be able to list series 
that are listed by other exchanges, assuming they file similar rules 
with the Commission to list SPY and QQQ options expiring on Tuesdays 
and Thursdays with a limit of two Tuesday Short Term Daily Expirations 
and two Thursday Short Term Daily Expirations.
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    \8\ See IM-5050-6(b)(1).
    \9\ Id.
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    Finally, the Exchange is amending IM-5050-6(b)(2), to conform the 
rule text to the usage of the term ``Short Term Option Daily 
Expirations.'' Today, with the exception of Monday and Wednesday SPY 
Expirations, Monday and Wednesday QQQ Expirations, and Monday and 
Wednesday IWM Expirations, no Short Term Option Series may expire in 
the same week in which monthly option series on the same class expire. 
With this proposal, Tuesday and Thursday SPY Expirations and Tuesday 
and Thursday QQQ Expirations would be treated similarly to existing 
Monday and Wednesday SPY, QQQ, and IWM Expirations. With respect to 
monthly option series, Short Term Option Daily Expirations will be 
permitted to expire in the same week in which monthly option series on 
the same class expire. Not listing Short Term Option Daily Expirations 
for one week every month because there was a monthly on that same class 
on the Friday of that week would create investor confusion.

[[Page 72575]]

    Further, as with Monday and Wednesday SPY, QQQ, and IWM 
Expirations, the Exchange would not permit Tuesday and Thursday Short 
Term Option Daily Expirations to expire on a business day in which 
monthly options series or Quarterly Options Series expire.\10\ 
Therefore, all Short Term Option Daily Expirations would expire at the 
close of business on each of the next two Mondays, Tuesdays, 
Wednesdays, and Thursdays, respectively, that are business days and are 
not business days in which monthly options series or Quarterly Options 
Series expire. The Exchange believes that it is reasonable to not 
permit two expirations on the same day in which a monthly options 
series or a Quarterly Options Series would expire.
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    \10\ While the Exchange proposes to add rule text within IM-
5050-6 with respect to Monday Expirations, Tuesday Expirations, and 
Wednesdays Expirations stating that those expirations would not 
expire on business days that are business days in which monthly 
options series expire, practically speaking this would not occur.
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    The Exchange does not believe that any market disruptions will be 
encountered with the introduction of P.M.-settled Tuesday and Thursday 
Short Term Option Daily Expirations. The Exchange has the necessary 
capacity and surveillance programs in place to support and properly 
monitor trading in the proposed Tuesday and Thursday Short Term Option 
Daily Expirations. The Exchange currently trades P.M.-settled Short 
Term Option Series that expire Monday and Wednesday for SPY, QQQ and 
IWM and has not experienced any market disruptions nor issues with 
capacity. Today, the Exchange has surveillance programs in place to 
support and properly monitor trading in Short Term Option Series that 
expire Monday and Wednesday for SPY, QQQ and IWM. The Exchange notes 
that Monday and Wednesday Expirations in SPY, QQQ, and IWM that were 
listed prior to the proposed changes discussed herein will continue to 
be listed on the Exchange until those options expire pursuant to the 
current Short Term Option Series rules.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of section 6(b) of the Securities Exchange Act of 1934 
(the ``Act''),\11\ in general, and section 6(b)(5) of the Act,\12\ in 
particular, in that it is 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 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.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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    The proposal is consistent with the Act as the overall reduction 
offered by this proposal reduces the number of Short Term Option 
Expirations to be listed on the Exchange. This reduction would remove 
impediments to and perfect the mechanism of a free and open market by 
encouraging Market Makers to continue to deploy capital more 
efficiently and improve market quality. Also, the Exchange's proposal 
curtails the number of Monday, Tuesday, Wednesday, and Thursday 
expirations in SPY, QQQ, and IWM without reducing the classes of 
options available for trading on the Exchange. The Exchange believes 
that despite the proposed curtailment of expirations, Participants will 
continue to be able to expand hedging tools and tailor their investment 
and hedging needs more effectively in SPY, QQQ, and IWM.
    Similar to SPY, QQQ and IWM Monday and Wednesday Expirations 
(proposed to be SPY, QQQ and IWM Monday and Wednesday Short Term Daily 
Expirations), the introduction of SPY and QQQ Tuesday and Thursday 
Short Term Daily Expirations is consistent with the Act as it will, 
among other things, expand hedging tools available to market 
participants and continue the reduction of the premium cost of buying 
protection. The Exchange believes that SPY and QQQ Tuesday and Thursday 
expirations (renamed SPY and QQQ Tuesday and Thursday Short Term Daily 
Expirations) will allow market participants to purchase SPY and QQQ 
options based on their timing as needed and allow them to tailor their 
investment and hedging needs more effectively. Further, the proposal to 
permit Tuesday and Thursday Short Term Daily Expirations for options on 
SPY and QQQ listed pursuant to the Short Term Option Series Program, 
subject to the proposed limitation of two expirations, would protect 
investors and the public interest by providing the investing public and 
other market participants more flexibility to closely tailor their 
investment and hedging decisions in SPY and QQQ options, thus allowing 
them to better manage their risk exposure.
    In particular, the Exchange believes the Short Term Option Series 
Program has been successful to date and that Tuesday and Thursday SPY 
and QQQ Short Term Daily Expirations should simply expand the ability 
of investors to hedge risk against market movements stemming from 
economic releases or market events that occur throughout the month in 
the same way that the Short Term Option Series Program has expanded the 
landscape of hedging. Similarly, the Exchange believes Tuesday and 
Thursday SPY and QQQ Short Term Daily Expirations should create greater 
trading and hedging opportunities and flexibility, and will provide 
customers with the ability to tailor their investment objectives more 
effectively. The Exchange currently lists Monday and Wednesday SPY, 
QQQ, and IWM Expirations (renamed SPY, QQQ, and IWM Monday and 
Wednesday Short Term Daily Expirations).
    Today, with the exception of Monday and Wednesday SPY Expirations, 
Monday and Wednesday QQQ Expirations, and Monday and Wednesday IWM 
Expirations, no Short Term Option Series may expire in the same week in 
which monthly option series on the same class expire. With this 
proposal, Tuesday and Thursday SPY Expirations and Tuesday and Thursday 
QQQ Expirations would be treated similarly to existing Monday and 
Wednesday SPY, QQQ, and IWM Expirations. The Exchange believes that 
permitting Short Term Option Daily Expirations to expire in the same 
week that standard monthly options expire on Fridays is consistent with 
Act. Not listing Short Term Option Daily Expirations for one week every 
month because there was a monthly on that same class on the Friday of 
that week would create investor confusion.
    Further, as with Monday and Wednesday SPY, QQQ, and IWM 
Expirations, the Exchange would not permit Tuesday and Thursday Short 
Term Option Daily Expirations to expire on a business day in which 
monthly options series or Quarterly Options Series expire. Therefore, 
all Short Term Option Daily Expirations would expire at the close of 
business on each of the next two Mondays, Tuesdays, Wednesdays, and 
Thursdays, respectively, that are business days and are not business 
days in which monthly options series or Quarterly Options Series 
expire. The Exchange believes that it is consistent with the Act to not 
permit two expirations on the same day in which a monthly options 
series or a Quarterly Options Series would expire similar to Monday and 
Wednesday SPY, QQQ, and IWM Expirations.
    There are no material differences in the treatment of Wednesday SPY 
and QQQ expirations for Short Term Option Series as compared to the 
proposed

[[Page 72576]]

Tuesday and Thursday SPY and QQQ Short Term Daily Expirations. Given 
the similarities between Wednesday SPY, QQQ and IWM Expirations and the 
proposed Tuesday and Thursday SPY and QQQ Short Term Daily Expirations, 
the Exchange believes that applying the provisions in IM-5050-6 that 
currently apply to Wednesday SPY, QQQ and IWM Expirations to Tuesday 
and Thursday SPY and QQQ Short Term Daily Expirations is justified.
    Finally, the Exchange represents that it has an adequate 
surveillance program in place to detect manipulative trading in the 
proposed Tuesday and Thursday SPY and QQQ Short Term Daily Expirations, 
in the same way that it monitors trading in the current Short Term 
Option Series and trading in Monday and Wednesday SPY, QQQ, and IWM 
Expirations. The Exchange also represents that it has the necessary 
systems capacity to support the new options series. Finally, the 
Exchange does not believe that any market disruptions will be 
encountered with the introduction of Tuesday and Thursday SPY and QQQ 
Short Term Daily Expirations.

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. In this regard and as indicated 
above, the Exchange notes that the rule change is being proposed as a 
response to a filing submitted by Nasdaq ISE that was recently approved 
by the Commission.\13\
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    \13\ See supra, note 3.
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    Further, the Exchange believes the proposal will provide an overall 
reduction in the number of Short Term Option Expirations to be listed 
on the Exchange. The Exchange believes this reduction will not impose 
an undue burden on competition, rather, it should encourage Market 
Makers to continue to deploy capital more efficiently and improve 
market quality. Also, the Exchange's proposal curtails the number of 
weekly expirations in SPY, QQQ, and IWM without reducing the classes of 
options available for trading on the Exchange. The Exchange believes 
that despite the proposed curtailment of weekly expirations, 
Participants will continue to be able to expand hedging tools and 
tailor their investment and hedging needs more effectively in SPY, QQQ, 
and IWM.
    Similar to SPY, QQQ and IWM Monday and Wednesday Expirations, the 
introduction of SPY and QQQ Tuesday and Thursday Short Term Daily 
Expirations does not impose an undue burden on competition. The 
Exchange believes that it will, among other things, expand hedging 
tools available to market participants and continue the reduction of 
the premium cost of buying protection. The Exchange believes that SPY 
and QQQ Tuesday and Thursday Short Term Daily Expirations will allow 
market participants to purchase SPY and QQQ 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 proposal will impose any burden 
on inter- market competition, as nothing prevents the other options 
exchanges from proposing similar rules to list and trade Short-Term 
Option Series with Tuesday and Thursday Short Term Daily Expirations. 
The Exchange notes that having Tuesday and Thursday SPY and QQQ 
expirations is not a novel proposal, as Wednesday SPY, QQQ and IWM 
Expirations are currently listed on the Exchange.
    Further, the Exchange does not believe the proposal will impose any 
burden on intra-market competition, as all market participants will be 
treated in the same manner under this proposal.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
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 \16\ and subparagraph (f)(6) of 
Rule 19b-4 thereunder.\17\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \18\ normally does not become operative for 30 days after the date 
of its 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 requested that the Commission waive the 30-day operative delay so 
that the proposed rule change may become operative upon filing. The 
Commission notes that it recently approved Nasdaq ISE's substantially 
similar proposal.\20\ The Exchange has stated that waiver of the 30-day 
operative delay will ensure fair competition among the exchanges and 
align its rules with identical rules currently in place at another 
exchange. For these reasons, 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 designates the proposed rule change operative upon 
filing.\21\
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    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
    \20\ See Securities Exchange Act Release No. 96281 (November 9, 
2022) (SR-ISE-2022-18).
    \21\ 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:

[[Page 72577]]

Electronic Comments:

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BOX-2022-29 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-BOX-2022-29. 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 such 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-BOX-2022-29 and should be submitted on 
or before December 16, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25666 Filed 11-23-22; 8:45 am]
BILLING CODE 8011-01-P