[Federal Register Volume 89, Number 58 (Monday, March 25, 2024)]
[Notices]
[Pages 20717-20720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06165]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99776; File No. SR-ISE-2024-14]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
of Proposed Rule Change To Amend ISE Options 4, Section 3 To List and 
Trade Options on Units 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 13, 2024, Nasdaq ISE, LLC (``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 to [sic] amend Options 4, Section 3, Criteria for 
Underlying Securities.
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/ise/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 4, Section 3, Criteria for 
Underlying Securities. Specifically, the Exchange proposes to amend 
Options 4, Section 3(h) to allow the Exchange to list and trade options 
on units that represent interests in a trust that hold bitcoin 
(``Bitcoin ETPs''), designating them as Exchange-Traded Fund Shares 
(``ETFs'') deemed appropriate for options trading on the Exchange. 
Options 4, Section 3(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,\3\ including interests in certain specific trusts that hold 
financial instruments, money market instruments, or precious metals 
(which are deemed commodities).
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    \3\ Options 4, Section 3(h) provides that securities deemed 
appropriate for options trading shall include shares or other 
securities (``Exchange-Traded Fund Shares'' or ``ETFs'') that are 
traded on a national securities exchange and are defined as an 
``NMS'' stock under Rule 600 of Regulation NMS, and that meet 
certain criteria specified in Options 4, Section 3(h), including 
that they: . . . (iv) represent interests in the SPDR[supreg] Gold 
Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, or 
the ETFS Gold Trust . . .''. In addition to the aforementioned 
requirements, Options 4, Section 3(h)(1) and (2) must be met to list 
options on ETFs.
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    Bitcoin ETPs are bitcoin-backed commodity ETPs structured as 
trusts.\4\ Similar to any ETF currently deemed appropriate for options 
trading under Options 4, Section 3(h), 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.\5\ 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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    \4\ Pursuant to Options 4, Section 3(a), the Exchange would only 
have authority to list and trade ETFs that are trading as NMS 
stocks.
    \5\ 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 Options 4, Section 3(a) and Options 4, 
Section 3(h). Pursuant to Options 4, Section 3(a), a security (which 
includes an ETF) on which options may be listed and traded on the 
Exchange must be a security registered (with the Commission) and be an 
NMS stock (as defined in Rule 600 of Regulation NMS under the Act, and 
the security shall be characterized by a substantial number of 
outstanding shares that are widely held and actively traded.\6\ Options 
4, Section 3(h)(1) requires that ETFs must either meet the criteria and 
guidelines set forth in Options 4, Section 3(a) and (b) \7\ or the ETFs 
are available for creation or redemption each business day from or 
through the issuing trust, investment company, commodity pool or other 
entity in cash or in kind at a price related to net asset value, and 
the issuer is obligated to issue ETFs in a specified aggregate number 
even if some or all of the investment assets and/or cash required to be 
deposited have not been received by the issuer, subject to the 
condition that the person obligated to deposit the investment assets 
has undertaken to deliver them as soon as possible and such undertaking 
is secured by the delivery and maintenance of collateral consisting of 
cash or cash equivalents satisfactory to the issuer of the ETFs, all as 
described in the ETFs' prospectus. The Exchange expects that Bitcoin 
ETPs would satisfy Options 4, Section 3(h)(1)(ii).\8\
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    \6\ The Exchange represents it would not list options on a 
Bitcoin ETP unless it satisfied the criteria in Options 4, Section 
3(a), the proposed listing criteria, and any other applicable 
listing criteria.
    \7\ Options 4, Section 3(h)(1) provides criteria and guidelines 
when evaluating potential underlying securities for the listing of 
options.
    \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

[[Page 20718]]

listing standards for options on ETFs set forth in Options 4, Section 
4(g) for ETFs deemed appropriate for options trading pursuant to 
Options 4, Section 3(h). Specifically, options approved for trading 
pursuant to Options 4, Section 3(h) will not be deemed to meet the 
requirements for continued approval, and the Exchange shall not open 
for trading any additional series of option contracts of the class 
covering such ETFs if the ETFs are delisted from trading as provided in 
subparagraph (b)(5) of Options 4, Section 4 \9\ or the ETFs are halted 
or suspended from trading on their primary market.\10\ Additionally, 
options on ETFs may be subject to the suspension of opening 
transactions in any series of options of the class covering ETFs in any 
of the following circumstances:
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    \9\ Options 4, Section 4(b)(5) provides, if an underlying 
security is approved for options listing and trading under the 
provisions of Options 4, Section 3(c), the trading volume of the 
Original Security (as therein defined) prior to but not after the 
commencement of trading in the Restructure Security (as therein 
defined), including `when-issued' trading, may be taken into account 
in determining whether the trading volume requirement of (3) of this 
paragraph (b) is satisfied.
    \10\ See Options 4, Section 4(g).
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    (1) in the case of options covering Exchange-Traded Fund Shares 
approved pursuant to Options 4, Section 3(h)(A)(i), in accordance with 
the terms of subparagraphs (b)(1), (2), (3) and (4) of Options 4, 
Section 4; \11\
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    \11\ Options 4, Section 4(b)(5)(1) through (4) provides, if: (1) 
there are fewer than 6,300,000 shares of the underlying security 
held by persons other than those who are required to report their 
security holdings under Section 16(a) of the Act, (2) there are 
fewer than 1,600 holders of the underlying security, (3) the trading 
volume (in all markets in which the underlying security is traded) 
has been less than 1,800,000 shares in the preceding twelve (12) 
months, or (4) the underlying security ceases to be an `NMS stock' 
as defined in Rule 600 of Regulation NMS under the Exchange Act. 
Options 4, Section 3(h)(i) refers to Financial Instruments and Money 
Market Instruments. In addition, the Exchange proposes to amend the 
citation to ``Options 4, Section 3(h)(A)(i)'' herein to ``Options 4, 
Section 3(h)(i).''
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    (2) in the case of options covering Fund Shares approved pursuant 
to Options 4, Section 3(h)(A)(ii),\12\ following the initial twelve-
month period beginning upon the commencement of trading in the 
Exchange-Traded Fund Shares on a national securities exchange and are 
defined as an ``NMS stock'' under Rule 600 of Regulation NMS, there 
were fewer than 50 record and/or beneficial holders of such Exchange-
Traded Fund Shares for 30 or more consecutive trading days;
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    \12\ Options 4, Section 3(h)(ii) refers to Currency Trust 
Shares. In addition, the Exchange proposes to amend the citation to 
``Options 4, Section 3(h)(A)(ii)'' herein to ``Options 4, Section 
3(h)(ii).''
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    (3) the value of the index or portfolio of securities or non-U.S. 
currency, portfolio of commodities including commodity futures 
contracts, options on commodity futures contracts, swaps, forward 
contracts, options on physical commodities and/or Financial Instruments 
and Money Market Instruments, on which the Exchange-Traded Fund Shares 
are based is no longer calculated or available; or
    (4) such other event occurs or condition exists that in the opinion 
of the Exchange makes further dealing in such options on the Exchange 
inadvisable.
    Options on a Bitcoin ETP would be physically settled contracts with 
American-style exercise.\13\ Consistent with current Options 4, Section 
5, which governs the opening of options series on a specific underlying 
security (including ETFs), the Exchange will open at least one 
expiration month for options on each Bitcoin ETP \14\ and may also list 
series of options on a Bitcoin ETP for trading on a weekly \15\ or 
quarterly \16\ basis. The Exchange may also list long-term equity 
option series (``LEAPS'') that expire from twelve to thirty-nine months 
from the time they are listed.\17\
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    \13\ See Options 4, Section 2, Rights and Obligations of Holders 
and Writers, which provides that the rights and obligations of 
holders and writers shall be as set forth in the Rules of the 
Clearing Corporation. See also The Options Clearing Corporation 
(``OCC'') Rules, Chapter 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. OCC Rules can be located at: https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occ_rules.pdf.
    \14\ See Options 4, Section 5(b). At the commencement of trading 
on the Exchange of a particular class of options, the Exchange will 
open a minimum of one (1) series of options in that class. The 
exercise price of that series will be fixed at a price per share, 
relative to the underlying stock price in the primary market at 
about the time that class of options is first opened for trading on 
the Exchange. The monthly expirations are subject to certain listing 
criteria for underlying securities described within Options 4, 
Section 5. 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 Options 
4, Section 5(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. The opening 
of a new series of options shall not affect the series of options of 
the same class previously opened. 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 the business day of expiration, or, in the 
case of an option contract expiring on a day that is not a business 
day, on the second business day prior to expiration.
    \15\ See Supplementary .03 to Options 4, Section 5.
    \16\ See Supplementary .04 to Options 4, Section 5.
    \17\ See Options 4, Section 8.
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    Pursuant to Options 4, Section 5(d), which governs strike prices of 
series of options on ETFs, the interval between strike prices of series 
of options on Bitcoin ETPs will be $1 or greater when the strike price 
is $200 or less and $5 or greater when the strike price is greater than 
$200.\18\ Additionally, the Exchange may list series of options 
pursuant to the $1 Strike Price Interval Program,\19\ the $0.50 Strike 
Program,\20\ the $2.50 Strike Price Program,\21\ and the $5 Strike 
Program.\22\ Pursuant to Options 3, Section 3, where the price of a 
series of a Bitcoin ETP options is less than $3.00, the minimum 
increment will be $0.05, and where the price is $3.00 or higher, the 
minimum increment will be $0.10.\23\ 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 
Options 4, Section 5 and Options 3, Section 3, as applicable.
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    \18\ See Options 4, Section 5(h). The Exchange notes that for 
options listed pursuant to the Short Term Option Series Program, the 
Quarterly Options Series Program, and the Monthly Options Series 
Program, Supplementary Material .03, .04 and .08 to Options 4, 
Section 5 specifically sets forth intervals between strike prices on 
Short Term Option Series, Quarterly Options Series, and Monthly 
Options Series, respectively.
    \19\ See Supplementary Material .01 to Options 4, Section 5.
    \20\ See Supplementary Material .05 to Options 4, Section 5.
    \21\ See Supplementary Material .02 to Options 4, Section 5.
    \22\ See Supplementary Material .06 to Options 4, Section 5.
    \23\ If options on a Bitcoin ETP are eligible to participate in 
the Penny Interval Program, the minimum increment will be $0.01 for 
series with a price below $3.00 and $0.05 for series with a price at 
or above $3.00. See Supplementary Material .01 to Options 3, Section 
3 (which describes the requirements for the Penny Interval Program).
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    Bitcoin ETP options will trade in the same manner as options on 
other ETFs on the Exchange. Exchange Rules that currently apply to the 
listing and trading of all options on ETFs on the Exchange, including, 
for example, Rules that govern listing criteria, expirations, 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

[[Page 20719]]

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 pursuant to Options 4, Section 3(h)(iv).
    Position and exercise limits for options on ETFs, including options 
on Bitcoin ETPs, are determined pursuant to Options 9, Sections 13 and 
15, respectively. Position and exercise limits for ETFs options vary 
according to the number of outstanding shares and the trading volumes 
of the underlying ETF over the past six months, where the largest in 
capitalization and the most frequently traded ETFs have an option 
position and exercise limit of 250,000 contracts (with adjustments for 
splits, re-capitalizations, etc.) on the same side of the market; and 
smaller capitalization ETFs have position and exercise limits of 
200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for 
splits, re-capitalizations, etc.) on the same side of the market.\24\ 
Further, Options 6C, Section 3, which governs margin requirements 
applicable to the trading of all options on the Exchange including 
options on ETFs, will also apply to the trading of the Bitcoin ETP 
options.
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    \24\ As Bitcoin ETPs do not currently trade, options on Bitcoin 
ETPs would be subject to the 25,000 option contract limit.
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    The Exchange represents that the same surveillance procedures 
applicable to all other options on other 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 options 
on ETFs, including precious metal-commodity backed ETF 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 the Options Price Reporting Authority or 
``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 Exchange 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),\25\ 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 ETF options, including ETFS that hold commodities (i.e., 
precious metals) that it currently lists and trades on the Exchange.
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    \25\ The Exchange understands from customers that investors have 
historically transacted in options on units in the OTC options 
market if such options were not available for trading in a listed 
environment.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\26\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\27\ 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 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) \28\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \26\ 15 U.S.C. 78f(b).
    \27\ 15 U.S.C. 78f(b)(5).
    \28\ 15 U.S.C. 78(f)(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 a greater 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 ETF 
options it currently lists for trading.
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    \29\ See Options 4, Section 3(h)(iv).
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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

[[Page 20720]]

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 ETF options--the same Exchange Rules that currently govern the 
listing and trading of all ETF options, including permissible 
expirations, strike prices and minimum increments, and applicable 
position and exercise limits and margin requirements, will govern the 
listing and trading of options on 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.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.
    The Exchange does not believe that the proposed rule change will 
impose any burden on intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act as Bitcoin ETPs 
would need to satisfy the initial listing standards set forth in the 
Exchange Rules in the same manner as any other ETF before the Exchange 
could list options on them. 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.\30\
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    \30\ See Options 4, Section 3(h)(iv).
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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 
and meet their investment needs in connection with bitcoin prices and 
bitcoin-related products and positions on a listed options exchange.

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

    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-ISE-2024-14 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-ISE-2024-14. 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-ISE-2024-14 and should be 
submitted on or before April 15, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-06165 Filed 3-22-24; 8:45 am]
BILLING CODE 8011-01-P