Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Exchange Rule 5020 To Allow the Exchange To List and Trade Options on ETFs That Represent Interests in a Trust That Holds Bitcoin
| Published date | 25 March 2024 |
| Record Number | 2024-06167 |
| Citation | 89 FR 20712 |
| Court | Securities And Exchange Commission |
| Section | Notices |
Federal Register, Volume 89 Issue 58 (Monday, March 25, 2024)
[Federal Register Volume 89, Number 58 (Monday, March 25, 2024)]
[Notices]
[Pages 20712-20716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06167]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99777; File No. SR-BOX-2024-07]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
of Proposed Rule Change To Amend Exchange Rule 5020 To Allow the
Exchange To List and Trade Options on ETFs That Represent Interests in
a Trust That Holds Bitcoin
March 19, 2024.
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 March 11, 2024, BOX Exchange LLC (``BOX'' 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 self-regulatory organization. The Commission
is publishing this notice to solicit comments on the proposed rule 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 Rule 5020 to allow the Exchange to
list and trade options on ETFs that represent interests in a trust that
holds Bitcoin ETPs, designating them as ETFs deemed appropriate for
options trading on the Exchange. 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.
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 BOX Rule 5020 (Criteria for
Underlying Securities) to allow the Exchange to list and trade options
on ETFs that represent interests in a trust that holds Bitcoin ETPs,
designating them as ETFs deemed appropriate for options trading on the
Exchange. This is a competitive filing that is based on proposals
recently submitted by Cboe Exchange, Inc (``CBOE'') and Miami
International Securities Exchange, LLC (``MIAX'').\3\
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\3\ See SR-CBOE-2024-005 and SR-MIAX-2024-03.
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Current Exchange Rule 5020(h) provides that, subject to certain
other criteria set forth in that Rule, securities deemed appropriate
for options trading include ETFs that represent certain types of
interests,\4\ including interests in
[[Page 20713]]
certain specific trusts that hold financial instruments, money market
instruments, or precious metals (which are deemed commodities).
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\4\ See Exchange Rule 5020(h), which permits options trading on
ETFs that (i) represent interests in registered investment companies
(or series thereof) organized as open-end management investment
companies, unit investment trusts or similar entities that hold
portfolios of securities and/or financial instruments, including,
but not limited to, stock index futures contracts, options on
futures, options on securities and indices, equity caps, collars and
floors, swap agreements, forward contracts, repurchase agreements
and reverse repurchase agreements (the ``Financial Instruments'')
and money market instruments, including, but not limited to, U.S.
government securities and repurchase agreements (the ``Money Market
Instruments'') comprising or otherwise based on or representing
investments in broad-based indexes or portfolios of securities and/
or Financial Instruments and Money Market Instruments (or that hold
securities in one or more other registered investment companies that
themselves hold such portfolios of securities and/or Financial
Instruments and Money Market Instruments); or (ii) represent
interests in a trust that holds a specified non-U.S. currency
deposited with the trust or similar entity when aggregated in some
specified minimum number may be surrendered to the trust by the
beneficial owner to receive the specified non-U.S. currency or
currencies and pays the beneficial owner interest and other
distributions on the deposited non-U.S. currency or currencies, if
any, declared and paid by the trust (``Currency Trust Shares''); or
(iii) represent commodity pool interests principally engaged,
directly or indirectly, in holding and/or managing portfolios or
baskets of securities, commodity futures contracts, options on
commodity futures contracts, swaps, forward contracts and/or options
on physical commodities and/or non-U.S. currency (``Commodity Pool
ETFs'') or (iv) represent interests in the SPDR[supreg] Gold Trust,
the iShares COMEX Gold Trust, the iShares Silver Trust, the ETFS
Gold Trust, the ETFS Silver trust, the ETFS Palladium Trust, the
ETFS Platinum Trust or the Sprott Physical Gold Trust; provided that
all of the conditions listed in (h)(1) and h(2) are met.
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Bitcoin ETPs are bitcoin-backed commodity ETPs structured as
trusts.\5\ Similar to any ETFs currently deemed appropriate for options
trading under Exchange Rule 5020, the investment objective of a Bitcoin
ETP trust is for its shares to reflect the performance of bitcoin (less
the expenses of the trust's operations), offering investors an
opportunity to gain exposure to bitcoin without the complexities of
bitcoin delivery. As is the case for ETFs currently deemed appropriate
for options trading, a Bitcoin ETP's shares represent units of
fractional undivided beneficial interest in the trust, the assets of
which consist principally of bitcoin and are designed to track bitcoin
or the performance of the price of bitcoin and offer access to the
bitcoin market.\6\ Bitcoin ETPs provide investors with cost efficient
alternatives that allow a level of participation in the bitcoin market
through the securities market. The primary substantive difference
between Bitcoin ETPs and ETFs currently deemed appropriate for options
trading are that ETFs may hold securities, certain financial
instruments, and specified precious metals (which are commodities),
while Bitcoin ETPs hold bitcoin (which is also deemed a commodity).
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\5\ The Exchange notes several filings to list and trade ETFs
that hold bitcoin as NMS stocks (and registration statements for
those Units) are currently pending with the Securities and Exchange
Commission (the ``Commission''). Pursuant to the Exchange's Rules,
the Exchange would only have authority to list and trade ETFs that
are trading as NMS stocks.
\6\ The trust may include minimal cash.
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The Exchange's initial listing standards for ETFs on which options
may be listed and traded on the Exchange will apply to the Bitcoin
ETPs. The Exchange expects Bitcoin ETPs to satisfy the initial listing
standards as set forth in Exchange Rule 5020(a) and Exchange Rule
5020(h). Pursuant to Exchange Rule 5020(a), a security (which includes
ETFs) on which options may be listed and traded on the Exchange must be
duly registered (with the Commission) and be an NMS stock (as defined
in Rule 600 of Regulation NMS under the Act,) and be characterized by a
substantial number of outstanding shares that are widely held and
actively traded.\7\ Exchange Rule 5020(h) requires that ETFs must
either (1) meet the criteria and standards set forth in Exchange Rule
5020(a) or Exchange Rule 5020(b), or (2) 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 ETFs 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. The Exchange expects that Bitcoin ETPs would
satisfy Exchange Rule 5020(h)(1).\8\
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\7\ As noted above, there are currently no Bitcoin ETPs trading
as NMS stocks on a national securities exchange; however,
registration statements and rule filings to list and trade several
Bitcoin ETPs are currently pending with the Commission. See
Securities Exchange Act Release No. 99306 (January 10, 2024) (citing
all the proposed rule changes to list and trade Bitcoin ETPs on U.S.
securities exchanges). The Exchange represents it would not list
options on a Bitcoin ETP unless it satisfied the criteria in
Exchange Rule 5020(a) the proposed listing criteria, and any other
applicable listing criteria.
\8\ See, e.g., Form S-1 Registration Statement filed on November
29, 2023 (Registration No. 333-275781) (pending registration
statement for shares of the Pando Asset Spot Bitcoin Trust); and
Form S-1 Registration Statement filed on September 12, 2023
(Registration No. 333-274474) (pending registration statement for
shares of the Franklin Bitcoin ETF).
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Options on Bitcoin ETPs will also be subject to the Exchange's
continued listing standards set forth in Exchange Rule 5030(h), for
ETFs deemed appropriate for options trading pursuant to Exchange Rule
5020(h). Specifically, Exchange Rule 5030(h) provides that ETFs that
were initially approved for options trading pursuant to Exchange Rule
5020(h) 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 that such ETFs, if the
ETFs are delisted from trading pursuant to Exchange Rule 5030(b)(6),
are halted or suspended from trading in their primary market.
Additionally, options on ETFs may be subject to the suspension of
opening transactions in any of the following circumstances: (1) in the
case of options covering ETFs approved for trading under Exchange Rule
5020(h)(1), in accordance with the terms of paragraphs (b)(1), (2), and
(3) of Exchange Rule 5030; (2) in the case of options covering ETFs
approved for trading under Exchange Rule 5020(h)(1), following the
initial twelve-month period beginning upon the commencement of trading
in the ETFs on a national securities exchange and are defined as an NMS
stock, there are fewer than 50 record and/or beneficial holders of such
ETFs 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 shall occur or condition exist that in the opinion
of the Exchange makes further dealing in such options on the Exchange
inadvisable.
Options on a Bitcoin ETP will be physically settled contracts with
American-style exercise.\9\ Consistent with current Exchange Rule 5050,
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 each Bitcoin ETP \10\ at the
[[Page 20714]]
commencement of trading on the Exchange and may also list series of
options on a Bitcoin ETP for trading on a weekly,\11\ monthly,\12\ or
quarterly \13\ basis. The Exchange may also list long-term equity
option series (``LEAPS'') that expire from 12 to 180 months from the
time they are listed.\14\
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\9\ See Exchange Rule 5010, which provides that the rights and
obligations of holders and writers are set forth in the Rules of the
Options Clearing Corporation (``OCC''); see also OCC Rules, Chapters
VIII (which governs exercise and assignment) and Chapter IX (which
governs the discharge of delivery and payment obligations arising
out of the exercise of physically settled stock option contracts).
\10\ See Exchange Rule 5050(b). The monthly expirations are
subject to certain listing criteria for underlying securities
described within Exchange Rule 5050 and its interpretive materials.
Monthly listings expire the third Friday of the month. The term
``expiration date'' (unless separately defined elsewhere in the OCC
By-Laws), when used in respect of an option contract (subject to
certain exceptions), means the third Friday of the expiration month
of such option contract, or if such Friday is a day on which the
exchange on which such option is listed is not open for business,
the preceding day on which such exchange is open for business. See
OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 5050(c),
additional series of options of the same class may be opened 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 stock moves more than five strike
prices from the initial exercise price or prices. Pursuant to
Exchange Rule 5050(c), new series of options on an individual stock
may be added until the beginning of the month in which the options
contract will expire. Due to unusual market conditions, the
Exchange, in its discretion, may add a new series of options on an
individual stock until the close of trading on the business day
prior to expiration.
\11\ See IM-5050-6 Short Term Option Series Program.
\12\ See IM-5050-13 Monthly Options Series Program.
\13\ See IM-5050-4 Quarterly Options Series Program.
\14\ See Rule 5050(d).
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Pursuant to Exchange IM-5050-1(c), which governs strike prices of
series of options on Trust Issued Receipts, the interval of strikes
prices for series of options Bitcoin ETPs will be $1 or greater when
the strike price is $200 or less and $5 or greater where the strike
price is over $200.\15\ Additionally, the Exchange may list series of
options pursuant to the $1 Strike Price Interval Program,\16\ the $0.50
Strike Program,\17\ and the $2.50 Strike Price Program.\18\ Pursuant to
Exchange Rule 7050, where the price of a series of a Bitcoin ETP option
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.\19\ Any
and all new series of Bitcoin ETP options that the Exchange lists will
be consistent and comply with the expirations, strike prices, and
minimum increments set forth in Rules 5050 and 7050, as applicable.
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\15\ See IM-5050-1(c).
\16\ See IM-5050-2 $1 Strike Price Interval Program.
\17\ See IM-5050-5 $0.50 Strike Program.
\18\ See IM-5050-3 $2.50 Strike Price Program.
\19\ See Exchange Rule 7050.
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Bitcoin ETP options will trade in the same manner as any other ETF
options on the Exchange. The Exchange Rules that currently apply to the
listing and trading of all ETFs options on the Exchange, including, for
example, Exchange Rules that govern listing criteria, expiration and
exercise prices, minimum increments, position and exercise limits,
margin requirements, customer accounts and trading halt procedures will
apply to the listing and trading of Bitcoin ETPs on the Exchange in the
same manner as they apply to other options on all other ETFs that are
listed and traded on the Exchange, including the precious-metal backed
commodity ETFs already deemed appropriate for options trading on the
Exchange pursuant to current Exchange Rule 5020(h).
Position and exercise limits for options on ETFs, including options
on Bitcoin ETPs, are determined pursuant to Exchange Rules 3120 and
3140, respectively. Position and exercise limits for ETFs options vary
according to the number of outstanding shares and the trading volumes
of the Underlying Security \20\ 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 Units 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.
The Exchange further notes that Exchange Rule 10120, which governs
margin requirements applicable to trading on the Exchange, will also
apply to the trading of Bitcoin ETP options.
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\20\ The term ``underlying security'' means the security that
the Clearing Corporation shall be obligated to sell (in the case of
a call option) or purchase (in the case of a put option contract)
upon the valid exercise of an option contract. See Exchange Rule
100(a)(72).
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The Exchange represents that the same surveillance procedures
applicable to all other options on ETFs currently listed and traded on
the Exchange will apply to options on Bitcoin ETPs, and that it has the
necessary systems capacity to support the new option series. The
Exchange 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 ETFs
options, including precious metal-commodity backed ETFs options, as
proposed. Also, the Exchange may obtain information from CME Group
Inc.'s designated contract markets that are members of the Intermarket
Surveillance Group related to any financial instrument that is based,
in whole or in part, upon an interest in or performance of bitcoin, as
applicable.
The Exchange has also analyzed its capacity and represents that it
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 Bitcoin ETPs up to
the number of expirations currently permissible under the Rules.
Because the proposal is limited to ETFs on a single commodity, the
Exchange believes any additional traffic that may be generated from the
introduction of Bitcoin ETP options will be manageable.
The Exchange believes that offering options on Bitcoin ETPs will
benefit investors by providing them with an additional, relatively
lower cost investing tool to gain exposure to the price of bitcoin and
hedging vehicle to meet their investment needs in connection with
bitcoin related products and positions. The Exchange expects investors
will transact in options on Bitcoin ETPs in the unregulated over-the-
counter (``OTC'') options market (if the Commission approves Bitcoin
ETPs for exchange-trading),\21\ but may prefer to trade such options in
a listed environment to receive the benefits of trading listing
options, including (1) enhanced efficiency in initiating and closing
out position; (2) increased market transparency; and (3) heightened
contra-party creditworthiness due to the role of OCC as issuer and
guarantor of all listed options. The Exchange believes that listing
Bitcoin ETP options may cause investors to bring this liquidity to the
Exchange, would increase market transparency and enhance the process of
price discovery conducted on the Exchange through increased order flow.
The ETFs that hold financial instruments, money market instruments, or
precious metal commodities on which the Exchange may already list and
trade options are trusts structured in substantially the same manner as
Bitcoin ETPs and essentially offer the same objectives and benefits to
investors, just with respect to different assets. The Exchange notes
that it has not identified any issues with the continued listing and
trading of any ETFs options, including ETFs that hold commodities
(i.e., precious metals) that it currently lists and trades on the
Exchange.
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\21\ The Exchange understands from customers that investors have
historically transacted in options on ETFs in the OTC options market
if such options were not available for trading in a listed
environment.
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The Exchange also proposes a technical amendment to Rule 5020 to
amend the names ``ETFS Gold Trust'' to ``abrdn Gold ETF Trust'',\22\
``ETFS Silver trust'' to ``abrdn Silver ETF Trust'',\23\ ``ETFS
Palladium Trust'' to ``abrdn
[[Page 20715]]
Palladium ETF Trust'',\24\ and ``ETFS Platinum Trust'' to ``abrdn
Platinum ETF Trust''.\25\ At this time, the Exchange proposes to amend
the names of the ETFs to reflect their current names.\26\
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\22\ Effective March 31, 2022, Aberdeen Standard Gold ETF Trust
was renamed to abrdn Gold ETF Trust. https://www.sec.gov/Archives/edgar/data/1450923/000138713122003311/sgol-424b3_030822.htm.
\23\ Effective March 31, 2022, Aberdeen Standard Silver ETF
Trust was renamed to abrdn Silver ETF Trust. https://www.sec.gov/Archives/edgar/data/1450922/000138713122003309/sivr-424b3_030822.htm.
\24\ Effective March 31, 2022, Aberdeen Standard Palladium ETF
Trust was renamed to abrdn Palladium ETF Trust. https://www.sec.gov/Archives/edgar/data/1459862/000138713122003305/pall-424b3_030822.htm.
\25\ Effective March 31, 2022, Aberdeen Standard Platinum ETF
Trust was renamed to abrdn Platinum ETF Trust. https://www.sec.gov/Archives/edgar/data/1460235/000138713122003303/pplt-424b3_030822.htm.
\26\ See SR-ISE-2024-03, Amendment 1. The Exchange notes that it
is not updating corresponding cross-references in Rule 5030(h) to
5020(h) as the formatting of the BOX rules are different from Nasdaq
ISE and the Exchange does not believe an update is necessary.
Specifically, Nasdaq ISE is updating Option 4 Section 3(h) to remove
an incorrect cross reference to a rule that didn't exist.
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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''),\27\ in general, and Section 6(b)(5) of the Act,\28\ 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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\27\ 15 U.S.C. 78f(b).
\28\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes that the proposal to list and
trade options on Bitcoin ETPs will remove impediments to and perfect
the mechanism of a free and open market and a national market system
and, in general, protect investors because offering options on Bitcoin
ETPs will provide investors with an opportunity to realize the benefits
of utilizing options on a bitcoin-based ETP, including cost
efficiencies and increased hedging strategies. The Exchange believes
that offering Bitcoin ETP options will benefit investors by providing
them with a relatively lower-cost risk management tool, which will
allow them to manage their positions and associated risk in their
portfolios more easily in connection with exposure to the price of
bitcoin and with bitcoin-related products and positions. Additionally,
the Exchange's offering of Bitcoin ETP options will provide investors
with the ability to transact in such options in a listed market
environment as opposed to in the unregulated OTC options market, which
would increase market transparency and enhance the process of price
discovery conducted on the Exchange through increased order flow to the
benefit of all investors. The Exchange also notes that it already lists
options on other commodity-based ETFs,\29\ which, as described above,
are trusts structured in substantially the same manner as Bitcoin ETPs
and essentially offer the same objectives and benefits to investors,
just with respect to a different commodity (i.e., bitcoin rather than
precious metals) and for which the Exchange has not identified any
issues with the continued listing and trading of commodity-backed ETFs
options it currently lists for trading.
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\29\ See Exchange Rule 5020(h).
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The Exchange also believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
a national market system, because it is consistent with current
Exchange Rules, previously filed with the Commission. Options on
Bitcoin ETPs must satisfy the initial listing standards and continued
listing standards currently in the Exchange Rules, applicable to
options on all ETFs, including ETFs that hold other commodities already
deemed appropriate for options trading on the Exchange. Bitcoin ETP
options will trade in the same manner as any other ETFs options--the
same Exchange Rules that currently govern the listing and trading of
all ETFs 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
Bitcoin ETPs in the same manner.
The Exchange represents that it has the necessary systems capacity
to support the new ETF option series. The Exchange believes 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 Bitcoin ETP options.
Finally, the Exchange's proposal to amend the name ``ETFS Gold
Trust'' to ``abrdn Gold ETF Trust'', the name ``ETFS Silver trust'' to
``abrdn Silver ETF Trust'', the name ``ETFS Palladium Trust'' to
``abrdn Palladium ETF Trust'', and the name ``ETFS Platinum Trust'' to
``abrdn Platinum ETF Trust'' in Rule 5020(h) is consistent with the Act
and the protection of investors as this amendment reflects the current
names of the products.
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
competitive response to filings submitted by CBOE and MIAX.\30\
Additionally, Bitcoin ETP options will be equally available to all
market participants who wish to trade such options. The Exchange Rules
currently applicable to the listing and trading of options on ETFs on
the Exchange will apply in the same manner to the listing and trading
of all options on Bitcoin ETPs. Also, and as stated above, the Exchange
already lists options on other commodity-based ETFs.\31\
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\30\ See supra, note 3.
\31\ See Exchange Rule 5020(h).
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The Exchange does not believe that the proposal to list and trade
options on Bitcoin ETPs will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. To the extent that the advent of Bitcoin ETP
options trading on the Exchange may make the Exchange a more attractive
marketplace to market participants at other exchanges, such market
participants are free to elect to become market participants on the
Exchange. Additionally, other options exchanges are free to amend their
listing rules, as applicable, to permit them to list and trade options
on Bitcoin ETPs. Additionally, the Exchange notes that listing and
trading Bitcoin ETP options on the Exchange will subject such options
to transparent exchange-based rules as well as price discovery and
liquidity, as opposed to alternatively trading such options in the OTC
market. The Exchange believes that the proposed rule change may relieve
any burden on, or otherwise promote, competition as it is designed to
increase competition for order flow on the Exchange in a manner that is
beneficial to investors by providing them with a lower-cost option to
hedge their investment portfolios. The Exchange notes that it operates
in a highly competitive market in which market participants can readily
direct order flow to competing venues that offer similar products.
Ultimately, the Exchange believes that offering Bitcoin ETP options for
trading on the Exchange will promote competition by providing investors
with an additional, relatively low cost means to hedge their portfolios
[[Page 20716]]
and meet their investment needs in connection with bitcoin prices and
bitcoin-related products and positions on a listed options exchange.
Further, the Exchange's proposal to amend the names ``ETFS Gold
Trust'' to ``abrdn Gold ETF Trust'', ``ETFS Silver trust'' to ``abrdn
Silver ETF Trust'', ``ETFS Palladium Trust'' to ``abrdn Palladium ETF
Trust'', and ``ETFS Platinum Trust'' to ``abrdn Platinum ETF Trust'' in
Rule 5020(h) does not impose an undue burden on competition as this
amendment reflects the current names of these products.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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-BOX-2024-07 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-2024-07. 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-BOX-2024-07 and should be
submitted on or before April 15, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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\32\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06167 Filed 3-22-24; 8:45 am]
BILLING CODE 8011-01-P
